Axon Lifts 2025 Outlook Amid Surging Q2 Sales

Axon Enterprise posted a 33% year-over-year revenue increase in the second quarter of 2025, reaching approximately $669 million and beating analyst expectations with adjusted EPS of $2.12. The company raised its full-year revenue guidance to between $2.65 billion and $2.73 billion, citing strong demand for TASER devices, body cameras, counter-drone technology, and growing software and AI offerings. Recurring software and services revenue jumped 39%, lifting annual recurring revenue to $1.2 billion, and software gross margins improved even as hardware margins faced pressure. Major new contracts and innovation, especially in artificial intelligence, contributed to $10.7 billion in future booked orders. Despite these gains, Axon reported negative free cash flow and a decline in GAAP net income due to higher investments and operating costs. Nevertheless, analysts remain optimistic, with Raymond James raising its price target, and Axon's stock rising over 160% in the past year.