AXON) shares surge nearly 14% to lead S&P 500 and Nasdaq gainers Thursday

a day after the Taser maker topped profit and sales forecasts and lifted its outlook on demand for its new artificial intelligence policing tool.

AXON shares surged nearly 14% to lead S&P 500 and Nasdaq gainer Thursday, a day after the Taser maker topped profit and sales expectations and lifted its outlook on demand for its new artificial intelligence policing tool.

After the market close on Wednesday, AXON reported adjusted earnings per share of $1.28 on sales of $578 million for the second quarter. Analysts surveyed by Visible Alpha expected $1.30 and $587.0 million, respectively.

"We exceeded our expectations for Q2 revenue, driven by Software & Services, strong adoption of TASER 10, Axon Body 4 and growing demand for platform sensors, ” the company said in a statement.

The company, which makes body-worn cameras and other equipment for law enforcement, said its new Axon Assistant, an AI voice-enabled companion that is being integrated into Axon Body 4, is also driving demand.

"We are seeing strong early demand for Axon Assistant, which we believe provides a competitive edge to any agency focused on advancing their policing capabilities with technology," the company said.

Announced in May, Axon Assistant is an AI voice-enabled companion being built into Axon Body 4 that ensures police officers will have an always available voice-driven AI assistant delivering critical information exactly when and where it's needed.

"We are pleased to be reporting strong second quarter results with revenue above our expectations and adjusted EBITDA in-line with the high end of our outlook range, " said Axon CEO and founder Patrick Smith. "We are also raising our full year outlook for revenue and adjusted EBITDA to reflect the momentum we are seeing in the business.

"We continue to invest in innovation and expand our product offerings. We are particularly excited about the early demand for Axon Assistant, which we believe provides a competitive edge to any agency focused on advancing their policing capabilities with technology."

The company also raised its adjusted EBITDA projection to $650 million to $675 million from $640 million to $670 million. It now expects an operating loss of $20 million to $30 million, compared with a prior outlook for a loss of $30 million to $40 million. Analysts had anticipated an adjusted EBITDA of $634 million and an operating loss of $33 million.

AXON shares surged 13.9% to $174.88 in premarket trading Thursday. The stock is up about 104% so far this year.