Breakfast News: Why Axon Enterprise Is Soaring 15%

Breakfast News: Why Axon Enterprise Is Soaring 15%

February 25, 2026

Source: Image created by Jester AI.

1. Axon Exceeds Revenue and Earnings Guidance

Police safety specialist Axon (AXON +0.64%) gained more than 15% in overnight trading, after the Rule Breakers recommendation beat fourth-quarter targets for revenue and adjusted EBITDA – up 39% and 46% respectively. Revenue in fiscal 2026 is expected to grow between 27% and 30%, with an annual run rate of about $3.6 billion.

• “Man, we knew we had a hit on our hands”: In yesterday’s conference call, CEO Rick Smith said “Draft One is the fastest growing product or service we have ever launched.” The company describes Draft One as an AI tool “to draft a report narrative using the officer’s body-worn camera audio.”
• Accelerating 911 response through AI: Fool analyst Jason Moser recently spoke to Axon president Josh Isner to talk more about where the company is going. One conclusion: Leadership believes enterprise adoption could ultimately surpass public safety due to customer scale.

2. MercadoLibre Continues Latin America Dominance

MercadoLibre (MELI +0.41%) dipped 4% in early trading, despite a 45% jump in Q4 revenue year over year (YoY). Earnings per share fell short of expectations, with a 12.5% decline from the same quarter last year – and the company didn’t offer specific guidance for the 2026 year.

• Superscore of 86 on the Hidden Gems Primary Database**:** An RB Foundational Stock, MercadoLibre is increasingly leading Latin American e-commerce and digital finance, with total payment volume rising 42% YoY.
• “Margins are a bit of a concern”: Fool contributing analyst Matt Frankel noted “a 6.4% net margin in Q4, down from 10.5% in the fourth quarter of last year, mainly due to higher costs.” He says “this was a solid quarter for MercadoLibre, but it’s important to keep an eye on expenses and profitability going forward.”

3. More After-Market Rule Breakers Results

• TransMedics (TMDX 7.69%) put on 7% this morning, on the back of strong top- and bottom-line growth in Q4. Earnings per share soared 1,279% YoY. Management expects 2026 revenue in the region of $727 million to $757 million for growth between 20% and 25%.
• First Solar (FSLR 1.34%) fell 15% in pre-market trading, even after the U.S solar manufacturer posted a 33% YoY jump in Q4 EPS after yesterday’s market close – from an 11% revenue rise. A weaker outlook for 2026 did the damage.
• Marqeta (MQ 1.11%) enjoyed customer wins with more new products in Q4, as revenue grew 27%. But the stock was down over 7% in pre-market trading, as the company expects growth to slow in the year ahead.

4. The Pick of Today’s Stock Advisor Q4 Earnings

• TJX Companies (TJX 0.89%) is due to report before the opening bell today, following on from a 12% EPS gain in Q3. TJX is beating the S&P 500 by 13% since being recommended by Team Hidden Gems in December 2024.
• Zoom (ZM +0.22%) brings us its latest after market close, as analysts expect a 7.6% increase in full-year EPS. Q3 saw a 10% earnings gain, as management guidance pointed to a narrow full-year revenue range of $4.852 billion to $4.857 billion.
• The Trade Desk (TTD 1.75%) saw revenue rise 18% YoY in Q3, though analysts expect growth to slow to around 13.5% over the final quarter of fiscal year. The latest figures are due after today’s close.

5. Your Take

**Nvidia **(NVDA 2.94%) also reports today, of course. In 2025, the stock rose by close to 40%, following an increase of a little over 170% in 2024.

**Now for a reckless prediction – what will Nvidia’s share price do in 2026? **

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