Shares of Axon Enterprise (AXON 15.07%) were surging today after the law enforcement technology company posted strong results in its second-quarter earnings report, easily beating estimates on the top and bottom lines. The company also raised its guidance for the full year.
As of 10:26 a.m. ET, the stock is up 18.5% on the news.

Image source: Axon.
Axon zooms past expectations
Revenue in the quarter jumped 33% to $668.6 million, well ahead of expectations at $641 million.
Growth was balanced across its two business segments: Software and services revenue was up 38.8% to $292.2 million, while connected devices, which includes its TASER electrical weapons and Axon body and dashboard cameras, was up 28.6% to $376.4 million. Annual recurring revenue also rose 39% to $1.2 billion, a sign of strength in the software business.
Axon is also gaining traction with its new generative artificial intelligence (AI) features, including Draft One, a tool that creates first drafts of police reports automatically based on camera footage, and these features are saving its customers many hours of desk work each week.
Bottom-line results were solid as well: Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 37% to $172 million, and adjusted earnings per share jumped from $1.22 to $2.12, though that included a boost from a $75 million tax benefit. That's up from the consensus at $1.46 a share.
What's next for Axon
The TASER maker also raised its guidance for the year, calling for revenue of $2.65 billion to $2.73 billion, up from a previous forecast of $2.6 billion to $2.7 billion. It also raised its adjusted EBITDA target from $650 million-$675 million to $665 million-$685 million.
Axon has established itself as the dominant provider of technology for law enforcement, and it continues to push its competitive advantage with investments in new technologies like AI.
While the stock is expensive, the future looks bright for Axon.