Axon Enterprise, Inc. (AXON) AI Stock Analysis

Axon Enterprise, Inc. specializes in the development, manufacturing, and global distribution of conducted energy devices under the TASER brand. The company operates through two core segments: Software and Sensors, and TASER. Its product portfolio features non-lethal hardware including the TASER 7, TASER X26P, TASER X2, and TASER Consumer devices, alongside on-officer body cameras and Axon Fleet in-car video systems. Axon also provides digital evidence management via its Axon Evidence software-as-a-service platform, Axon Signal enabled devices, and real-time situational awareness integrations through strategic collaborations such as its partnership with Fusus, Inc.

Axon grew annual revenue from $863.4M in FY2021 to $1.19B in FY2022, $1.56B in FY2023, $2.08B in FY2024, and $2.78B in FY2025, reflecting 33.5% revenue growth in FY2025. Gross margin moved from 61.5% in FY2021 to 59.7% in FY2025. Operating margin swung from -19.3% in FY2021 to a high of 10.2% in FY2023 before landing at -2.2% in FY2025 as research and development expenses reached $684.3M. Net income totaled $124.9M in FY2025, down from $377.0M in FY2024. In the latest quarter ended June 30, 2026, revenue increased 35.3% year-over-year, while quarterly earnings fell 18.2%.

As of June 30, 2026, Axon held $692.5M in cash and short-term investments against total debt of $1.83B, resulting in net debt of $1.14B. Total assets stood at $7.48B and shareholders' equity was $3.67B. Liquidity was supported by a current ratio of 2.15, alongside a debt-to-equity ratio of 0.50. During FY2025, operating cash flow reached $211.3M and free cash flow was $75.1M, with capital expenditures totaling $136.3M. Share count increased 19.1% over five years.

Axon closed at $390.29 on October 16, 2026, giving the company a market cap of $31.71B and an enterprise value of $38.45B. The stock trades at a trailing P/E of 161.9x and a forward P/E of 58.1x, above the median of its Nasdaq-100 Industrials peers of 28.5x and 22.2x, respectively. Its price-to-sales ratio of 9.8x and EV/EBITDA of 94.7x also compare to peer medians of 6.1x and 19.9x. Over the trailing 1-year period, Axon declined 40.2%, trailing the S&P 500 (SPY) gain of 16.8%.

Wall Street analysts hold 10 Strong Buy, 8 Buy, and 3 Hold ratings on Axon, with no Sell or Strong Sell recommendations. The mean price target is $690.68, representing 77.0% upside compared to the last close of $390.29. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $3.70B and EPS of $7.65. Axon topped EPS estimates in 3 of the last 4 quarters and is scheduled to report earnings next on November 3, 2026.

This page is an AI-written research summary of Axon Enterprise, Inc. (AXON). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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