Axon Enterprise Inc. faces margin contraction due to tariffs, impacting profitability despite increased sales

Axon's stock dropped 20% after missing profit expectations due to higher tariff-related costs, despite exceeding revenue forecasts. The company reported $1.17 earnings per share, significantly below the $1.54 expected, as tariffs increased component costs and impacted margins. Despite short-term profitability challenges, Axon raised its full-year revenue guidance and maintains strong long-term growth prospects.