Axon Enterprise Shares Dip Despite Record Revenue and 195th Ranking in Trading Volume

Axon Enterprise(AXON) shares fell 0.33% on May 9, 2025, with a trading volume of $416 million, down 63.82% from the previous day, ranking 195th in the day's stock market trading volume.

Axon reported strong financial results for the first quarter of 2025, achieving a new record for quarterly revenue and marking the 13th consecutive quarter of year-over-year sales growth exceeding 25%. The company's revenue for the quarter reached $604 million, a 31% increase from the previous year, surpassing market expectations by 6.5%.

In addition to its robust revenue growth, Axon also raised its guidance for the fiscal year 2025, projecting revenue between $2.60 billion and $2.70 billion, representing a 27% growth at the midpoint. The company's adjusted earnings for the first quarter were $1.41 per share, surpassing the consensus estimate of $1.27, with a 22.6% year-over-year increase.

Software and services revenue continued to drive Axon's growth, with a 39% increase in revenue, setting the company up for future expansion. Annual recurring revenue grew by 34% to $1.1 billion, further solidifying Axon's position in the market. The strong performance was attributed to high demand for Axon's software solutions, particularly in the law enforcement and military sectors.