Axon Enterprise, Inc. (AXON), a leading provider of law enforcement technology solutions, saw its stock surge 20.18% on Wednesday, February 26, 2025, during the pre-market trading session. The stock's significant rally was driven by the company's impressive fourth-quarter 2024 financial results and robust guidance for fiscal year 2025.

In the fourth quarter, Axon reported record revenue of $575.1 million, surging 33.1% year-over-year, fueled by strong demand across all business segments, including TASER devices, sensors, and cloud-based software and services. The company's high-margin Axon Cloud & Services segment delivered a robust 41% revenue growth, driven by the strong adoption of premium AI-powered offerings and the Axon Evidence digital evidence management platform.

Axon's profitability also soared, with adjusted earnings per share surging 85% to $2.08, crushing Wall Street's expectations of $1.40. The company achieved a remarkable 25% adjusted EBITDA margin for the full year 2024, a milestone initially set for 2025, reflecting its strong operating leverage and disciplined cost management.

Looking ahead, Axon issued bullish guidance for fiscal 2025, projecting revenue in the range of $2.55 billion to $2.65 billion, representing approximately 25% growth at the midpoint. The company expects to maintain its impressive adjusted EBITDA margin at around 25% as it continues investing heavily in strategic growth areas like AI, autonomous systems, and enterprise security integration.

Analysts at JMP Securities reiterated their Buy rating on Axon Enterprise and raised their price target, citing the company's strong performance and growth prospects. The impressive fourth-quarter results and robust 2025 guidance fueled investor optimism, driving the stock's significant rally on Wednesday.