Want to see AXON full AI Analyst Report?
Top Page
Axon Enterprise
(NASDAQ:AXON)
Select Model
Select Model
Rating:73Outperform
Price Target:
$680.00
▲(35.37% Upside)
Action:Upgraded
Date:08/06/26
AXON scores well on momentum and business outlook: strong technical uptrend (price above all major moving averages with positive MACD) and a very bullish earnings update with raised revenue guidance plus strong ARR/NRR and contracted bookings. Offsetting these strengths, the stock’s valuation is highly elevated (P/E ~204) and fundamentals show some quality gaps—profitability volatility and only moderate, less-consistent cash conversion—keeping the overall score in the low-70s rather than higher.
Positive Factors
Recurring revenue & retention
Strong ARR growth and a 126% net revenue retention indicate durable subscription-led revenue expansion and meaningful in-base upsell. High retention lowers churn-driven downside, improves visibility into multi-year cash flows, and supports predictable SaaS-style margin expansion as software penetration rises.
Negative Factors
Sizable debt load
A meaningful absolute debt balance combined with lower recent returns constrains financial flexibility for M&A, buybacks or large capex. Servicing debt increases sensitivity to interest rates and can limit ability to absorb prolonged margin or cash flow shocks without raising external capital or cutting investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & retention
Strong ARR growth and a 126% net revenue retention indicate durable subscription-led revenue expansion and meaningful in-base upsell. High retention lowers churn-driven downside, improves visibility into multi-year cash flows, and supports predictable SaaS-style margin expansion as software penetration rises.
Read all positive factors
Axon Enterprise Key Performance Indicators (KPIs)
Axon Enterprise (AXON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.54B
Dividend YieldN/A
Average Volume (3M)997.85K
Price to Earnings (P/E)204.4
Beta (1Y)1.56
Revenue Growth33.95%
EPS Growth-40.50%
CountryUS
Employees6,300
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.48
Shares Outstanding80,602,070
10 Day Avg. Volume682,951
30 Day Avg. Volume997,854
Financial Highlights & Ratios
PEG Ratio-5.23
Price to Book (P/B)14.08
Price to Sales (P/S)16.43
P/FCF Ratio608.15
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$731.50Price Target Upside45.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)7.73
Revenue Forecast (FY)$3.66B
Axon Enterprise Business Overview & Revenue Model
Company Description
Axon Enterprise, Inc., founded in 1993 and headquartered in Scottsdale, Arizona, was previously known as TASER International, Inc. until its rebranding in April 2017. The company specializes in the development, production, and sale of conducted en...
How the Company Makes Money
Axon makes money primarily by selling and subscribing customers to an integrated ecosystem of (1) devices and (2) software/cloud services, often bundled under multi-year contracts.
1) Connected Devices (hardware and related services): Axon genera...
Axon Enterprise Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based growth across revenue, software, devices, bookings and international/enterprise markets, with notable product momentum (Dedrone > $100M, TASER 10, Axon Body deployments) and improved profitability metrics. Management raised revenue guidance and highlighted durable metrics (ARR +39%, NRR 126%). Headwinds are present—inventory-driven near-term free cash flow pressure, rising memory/component costs, tariff variability, product-mix impacts, and privacy/governance risks—that could compress margins in Q3 before normalization in Q4. Overall the positives —scale, accelerating software adoption (including AI), bookings momentum and raised guidance—significantly outweigh the transitory operational and mix challenges.Positive Updates
Record Quarterly Revenue and Strong Top-Line Growth
Revenue of $904 million, up 35% year-over-year; marked the 10th consecutive quarter of growth above 30% and management called it a record quarter.
Negative Updates
Free Cash Flow Near-Term Pressure
Free cash flow was a $1 million outflow in the quarter; management is making substantial inventory investments to support demand and mitigate supply chain risk which is pressuring near-term FCF.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Top-Line Growth
Revenue of $904 million, up 35% year-over-year; marked the 10th consecutive quarter of growth above 30% and management called it a record quarter.
Read all positive updates
Company Guidance
Axon raised full-year revenue guidance to 32%–34% (up 200 bps from 30%–32%) while reiterating full‑year adjusted EBITDA margin of ~25.5% and a prior free cash flow target of $450M; management expects Q3 adjusted EBITDA to be pressured by higher memory costs with no tariff‑refund benefit, then margins scaling back in Q4 (seasonality similar to last year, with Q4 the strongest quarter). Supporting the outlook, Q2 results and bookings showed strong momentum — revenue $904M (+35% YoY), software & services $398M (+36%), connected devices $507M (+35%), platform solutions $150M (+123%), ARR +39% to $1.6B, NRR 126%, adjusted gross margin 62.9% (+130 bps sequential), adjusted EBITDA $242M (26.8% margin), operating cash flow $20M (vs -$92M prior year), free cash flow outflow $1M, Q2 gross bookings +20% YoY (five‑year normalized bookings +30%+ YoY with line of sight to finish the year in the ~30% range), and future contracted bookings >40% YoY to $15.1B; management also expects body‑camera shipments to rise ~20%–30% sequentially in Q3 (15%–20% q/q) and highlighted Dedrone surpassing $100M in quarterly revenue.Axon Enterprise Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.22B | 2.78B | 2.08B | 1.56B | 1.19B | 863.38M |
| Gross Profit | 1.91B | 1.66B | 1.24B | 955.45M | 728.64M | 531.09M |
| EBITDA | 440.05M | 196.37M | 437.03M | 183.37M | 227.62M | -117.11M |
| Net Income | 199.55M | 124.91M | 377.03M | 175.78M | 147.14M | -60.02M |
Balance Sheet | ||||||
| Total Assets | 7.48B | 7.00B | 4.47B | 3.41B | 2.85B | 1.69B |
| Cash, Cash Equivalents and Short-Term Investments | 692.53M | 1.71B | 986.35M | 1.32B | 974.69M | 443.02M |
| Total Debt | 1.83B | 1.91B | 1.40B | 710.66M | 711.11M | 20.44M |
| Total Liabilities | 3.81B | 3.76B | 2.15B | 1.79B | 1.58B | 640.36M |
| Stockholders Equity | 3.67B | 3.24B | 2.33B | 1.61B | 1.27B | 1.05B |
Cash Flow | ||||||
| Free Cash Flow | 133.19M | 75.08M | 329.53M | 128.99M | 179.25M | 74.22M |
| Operating Cash Flow | 265.81M | 211.34M | 408.31M | 189.26M | 235.36M | 124.49M |
| Investing Cash Flow | -101.94M | -724.93M | -490.57M | 12.48M | -830.97M | 252.56M |
| Financing Cash Flow | -179.01M | 1.25B | -45.44M | 41.31M | 598.10M | -174.18M |
Axon Enterprise Technical Analysis
Positive
502.34
Price Trends
511.14
Positive
460.58
Positive
512.49
Positive
Market Momentum
15.35
Negative
55.45
Neutral
54.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXON, the sentiment is Positive. The current price of 502.34 is below the 20-day moving average (MA) of 537.76, below the 50-day MA of 511.14, and below the 200-day MA of 512.49, indicating a bullish trend. The MACD of 15.35 indicates Negative momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 54.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXON.
Axon Enterprise Risk Analysis
Axon Enterprise disclosed 51 risk factors in its most recent earnings report. Axon Enterprise reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Axon Enterprise Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $42.54B | 204.39 | 5.92% | ― | 33.95% | -40.50% | |
70 Outperform | $77.07B | 17.20 | 26.58% | 1.73% | 5.90% | 16.00% | |
68 Neutral | $51.59B | 27.82 | 9.52% | 1.63% | 7.29% | 10.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $8.74B | 269.52 | 1.14% | ― | 21.82% | 34.38% | |
56 Neutral | $100.39M | -6.62 | -20.76% | ― | -4.78% | -90.32% |
* Industrials Sector Average
AXON
Axon Enterprise
571.01
-271.49
-32.22%
LHX
L3Harris Technologies
286.67
21.25
8.01%
KTOS
Kratos Defense
60.77
-3.11
-4.87%
NOC
Northrop Grumman
571.58
-0.56
-0.10%
SSTI
SoundThinking Inc
7.92
-3.50
-30.65%
Axon Enterprise Corporate Events
Business Operations and StrategyExecutive/Board Changes
Axon Enterprise Adds Tech Leaders to Board of Directors
Positive
Jul 10, 2026
On July 8, 2026, Axon Enterprise, Inc. appointed technology executives Vivek Mohindra and Eiso Kant as independent members of its Board of Directors, filling existing vacancies with initial terms running through the 2027 annual meeting of stockhol...
Executive/Board ChangesShareholder Meetings
Axon Enterprise Shareholders Back Board, Pay and Auditor
Positive
Jun 1, 2026
At its May 28, 2026 annual meeting, Axon Enterprise shareholders representing about 90.5% of outstanding shares cast votes on key governance matters, reflecting strong investor engagement in the company’s oversight. All nine director nominee...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.