Axon Enterprise (AXON) AI Stock Analysis

• Market Cap: $61.12B
• Dividend Yield: N/A
• Average Volume (3M): 524.40K
• Price to Earnings (P/E): 194.6
• Beta (1Y): 1.57
• Revenue Growth: 32.48%
• EPS Growth: 24.29%
• Country: US
• Employees: 4,100
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): 1.41
• Shares Outstanding: 77,850,815
• 10 Day Avg. Volume: 535,342
• 30 Day Avg. Volume: 524,397
• PEG Ratio: -14.25
• Price to Book (P/B): 23.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 166.90
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 7.62
• Enterprise Value/Gross Profit: 45.67
• Enterprise Value/Ebitda: 67.59
• 1Y Price Target: $749.55
• Price Target Upside: -8.44% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 77 Outperform
• Price Target: $913.00 ▲(11.53%Upside)

Axon's overall score reflects strong financial performance and positive earnings call insights, driving confidence in its growth trajectory. However, the high valuation and technical indicators suggesting potential overbought conditions moderate the score. Strategic financial management will be key to sustaining momentum.

Positive Factors

Financial Performance

Axon reported strong Q1 results, growing 31% versus a 25% forecast, with full-year revenue and adjusted EBITDA guidance raised slightly.

Product Development

Axon's dedication to new product development, innovation, and digital first strategy is a critical differentiator to peers.

Strategic Partnerships

Axon's partnership with Skydio is well-positioned to target the growing DFR market, leveraging Axon software to manage Skydio drones and provide centralized video repositories.

Negative Factors

Contracted Bookings

Future contracted bookings of $9.9 billion dropped slightly from $10.1 billion in Q4, similar to last year.

Federal Headwinds

Positive comments on bookings strength and demand indicators add to confidence in the year, more than offsetting modest tariff and federal headwinds.

Axon Enterprise Business Overview & Revenue Model

Company Description

Axon Enterprise, Inc. develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, TASER, and Software and Sensors. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence. Its products include TASER 7, TASER X26P, TASER X2, TASER Consumer devices, and related cartridges; on-officer body cameras, Axon Fleet in-car systems, and other devices; Axon Evidence digital evidence management software; Axon Signal enabled devices, as well as hardware extended warranties; and Axon docks, cartridges, and batteries. It sells its products through its direct sales force, distribution partners, online store, and third-party resellers. Axon Enterprise, Inc. has a strategic partnership with Fusus, Inc. to expand the capabilities of Axon Respond and the Fusus Real Time Crime Center in the Cloud solution to provide agencies real-time operations situational awareness, including streamlined investigative workflows. The company was formerly known as TASER International, Inc. and changed its name to Axon Enterprise, Inc. in April 2017. Axon Enterprise, Inc. was incorporated in 1993 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

Axon Enterprise generates revenue through multiple streams. The primary revenue source is the sale of its Taser weapons, which are widely used by law enforcement agencies globally. Additionally, Axon earns revenue from its Axon Cloud segment, which includes subscriptions to its digital evidence management software and related services. The company also makes money by selling body-worn cameras and other hardware devices, often bundled with software and service subscriptions in multi-year contracts. These contracts provide a recurring revenue model that is complemented by Axon's efforts to expand its product offerings and grow its customer base through strategic partnerships and continuous innovation in public safety technology.

Axon Enterprise Financial Statement Overview

Summary

Axon Enterprise presents a compelling financial profile characterized by significant revenue growth, strong gross margins, and effective cash flow management. While the balance sheet shows a manageable leverage level, the increase in debt warrants attention. The company's financials reflect a solid foundation with potential for further profitability enhancements, making it well-positioned within the Aerospace & Defense industry.

Income Statement

Axon Enterprise shows robust revenue growth with a steady increase from $863 million in 2021 to $2.23 billion in the TTM period ending March 2025. The company's gross profit margin remains strong at approximately 60% in recent periods, reflecting efficient cost management. However, the net profit margin is somewhat modest at around 14.8% for TTM, indicating room for improvement in profitability. Overall, the company's income statement displays a positive growth trajectory with solid profitability metrics.

Balance Sheet

The balance sheet of Axon Enterprise demonstrates a healthy equity position with stockholders' equity amounting to $2.56 billion in the TTM period. The debt-to-equity ratio of 0.80 suggests a balanced approach to leverage, while the equity ratio stands at a commendable 42%. However, the rise in total debt from $721 million in 2024 to over $2 billion in the TTM period requires monitoring. The company's overall balance sheet stability is strong, supported by substantial equity and manageable debt levels.

Cash Flow

Axon Enterprise exhibits strong cash flow performance, with free cash flow increasing to $362.6 million in the TTM period. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to profits. Additionally, the free cash flow to net income ratio of approximately 1.09 reflects good cash conversion. The positive trend in operating cash flow and free cash flow highlights financial flexibility and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.23B	2.08B	1.56B	1.19B	863.38M	681.00M
Gross Profit	1.35B	1.24B	955.38M	728.64M	540.91M	416.33M
EBITDA	229.45M	437.03M	194.63M	227.62M	-149.43M	-475.00K
Net Income	330.99M	377.03M	174.23M	147.14M	-60.02M	-1.72M
Balance Sheet
Total Assets	6.08B	4.47B	3.44B	2.85B	1.69B	1.38B
Cash, Cash Equivalents and Short-Term Investments	2.37B	986.35M	1.32B	974.69M	443.02M	561.97M
Total Debt	2.05B	721.67M	710.66M	711.11M	26.98M	24.38M
Total Liabilities	3.53B	2.15B	1.82B	1.58B	640.36M	404.77M
Stockholders Equity	2.56B	2.33B	1.61B	1.27B	1.05B	976.25M
Cash Flow
Free Cash Flow	362.59M	329.53M	128.99M	179.25M	74.22M	-34.39M
Operating Cash Flow	450.04M	408.31M	189.26M	235.36M	124.49M	38.48M
Investing Cash Flow	-1.02B	-490.57M	12.48M	-830.97M	252.56M	-356.53M
Financing Cash Flow	1.27B	-45.44M	41.31M	598.10M	-174.18M	299.26M

Axon Enterprise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 818.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 818.6 is above the 20-day moving average (MA) of 780.01, above the 50-day MA of 707.68, and above the 200-day MA of 585.39, indicating a bullish trend. The MACD of 24.48 indicates Positive momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 85.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXON.

Axon Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMT	80 Outperform	$107.40B	19.80	82.55%	2.88%	3.12%	-15.29%
GD	79 Outperform	$78.03B	20.18	18.23%	2.06%	14.11%	17.65%
AXON	77 Outperform	$61.12B	194.60	15.13%	―	32.48%	24.29%
LHX	76 Outperform	$46.14B	29.38	8.49%	1.94%	5.39%	36.86%
NOC	74 Outperform	$70.08B	19.16	25.41%	1.90%	0.61%	77.28%
TXT	74 Outperform	$14.31B	17.95	11.70%	0.10%	0.57%	-5.62%
Sector *	68 Neutral	£2.96B	10.47	8.40%	3.16%	2.88%	-10.00%

Axon Enterprise Corporate Events

Axon Enterprise Concludes 2025 Annual Shareholders Meeting

On May 29, 2025, Axon Enterprise, Inc. held its 2025 Annual Meeting of Shareholders, where 89.8% of the company’s shares were voted. During the meeting, directors were elected for a one-year term, the compensation of named executive officers was approved in a non-binding advisory vote, and the appointment of PricewaterhouseCoopers LLP as the independent registered public accountant for fiscal year 2025 was ratified.

The most recent analyst rating on (AXON) stock is a Buy with a $645.00 price target. To see the full list of analyst forecasts on Axon Enterprise stock, see the AXON Stock Forecast page.