Axon Enterprise reported second-quarter adjusted earnings of $2.12 a share, far above the $1.46 average analyst estimate, as revenue climbed 33% year over year to $669 million. The performance was powered by a 39% jump in Software & Services sales to $292 million and continued demand for TASER 10 devices, Axon Body 4 cameras and counter-drone systems. Annual recurring revenue reached $1.2 billion, also up 39%, while adjusted EBITDA rose 37% to $172 million, giving the company a 25.7% adjusted margin. Management said adoption of new AI-enabled features and premium software bundles helped lift net revenue retention to 124%. On the strength of the quarter, Axon increased its full-year 2025 revenue forecast to a range of $2.65 billion to $2.73 billion, implying roughly 29% growth at the midpoint and topping the prior $2.60 billion to $2.70 billion view. The company maintained its target of about a 25% adjusted EBITDA margin. The better-than-expected results and higher guidance sent the shares up roughly 4% in post-market trading.