Axon Enterprise Inc. reported strong financial results for the second quarter of 2025, with adjusted earnings per share (EPS) of $2.12, surpassing the consensus estimate of $1.46. The company's revenue reached $669 million, representing a 33% year-over-year increase and exceeding the expected $640 million. Key growth drivers included a 39% rise in software and services revenue to $292 million, a 29% increase in connected devices revenue to $376 million, and annual recurring revenue (ARR) climbing 39% to $1.2 billion. Net income stood at $36 million, reflecting a 5.4% net income margin. Adjusted EBITDA rose 37% to $172 million. Axon’s product demand was bolstered by sales of TASER 10, Axon Body 4, and counter-drone equipment, alongside the adoption of new generative artificial intelligence tools such as DraftOne. The company raised its full-year 2025 revenue guidance to a range of $2.65 billion to $2.73 billion, implying approximately 29% growth at the midpoint, slightly above previous estimates. Following the earnings release, Axon's shares surged around 15%, making it one of the top gainers on the S&P 500. The company’s CFO cited confidence in the sales pipeline and performance in the second quarter as reasons for the upgraded outlook.