Axon Enterprise (AXON) AI Stock Analysis

• Market Cap: $57.83B
• Dividend Yield: N/A
• Average Volume (3M): 570.69K
• Price to Earnings (P/E): 180.5
• Beta (1Y): 1.57
• Revenue Growth: 32.48%
• EPS Growth: 24.29%
• Country: US
• Employees: 4,100
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): 1.41
• Shares Outstanding: 77,850,815
• 10 Day Avg. Volume: 534,712
• 30 Day Avg. Volume: 570,692
• PEG Ratio: -13.72
• Price to Book (P/B): 22.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 160.74
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 7.32
• Enterprise Value/Gross Profit: 43.85
• Enterprise Value/Ebitda: 64.90
• 1Y Price Target: $781.25
• Price Target Upside: 4.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: $814.00 ▲(9.14%Upside)

Axon Enterprise's overall stock score reflects its robust financial performance and positive earnings call sentiment, characterized by strong revenue growth and strategic international expansion. While the stock's high valuation and mixed technical indicators temper the score, the company's solid foundation and optimistic guidance present a compelling growth narrative.

Positive Factors

Federal Initiatives

Axon is well positioned across federal initiatives with DeDrone, their partnership with Skydio, and FUSUS moving to the final FedRamp certification gate.

Product Development

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

Revenue Growth

Strong demand for Axon's products and software helped drive exceptional revenue growth over 20% every year of the last decade.

Negative Factors

Contracted Bookings

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

Investment Timing

The growth thesis is well understood, and there is a view to await a better entry point for investment.

Market Uncertainty

Despite the small size, the range of outcomes in International and Enterprise markets is less certain than in US State & Local.

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 demonstrates strong financial performance with significant revenue growth, solid gross margins, and efficient cash flow management. The balance sheet is sound with a manageable debt level, though the increase in debt warrants attention. Overall, the company is well-positioned within the industry with a strong financial foundation.

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

Axon Enterprise Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 745.86
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXON, the sentiment is Neutral. The current price of 745.86 is below the 20-day moving average (MA) of 777.61, below the 50-day MA of 754.10, and above the 200-day MA of 610.51, indicating a neutral trend. The MACD of -2.67 indicates Positive momentum. The RSI at 45.13 is Neutral, neither overbought nor oversold. The STOCH value of 23.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AXON.

Axon Enterprise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LMT	77 Outperform	$110.15B	20.31	82.55%	2.80%	3.12%	-15.29%
LHX	76 Outperform	$48.82B	30.95	8.49%	1.82%	5.39%	36.86%
TXT	75 Outperform	$15.25B	19.12	11.70%	0.10%	0.57%	-5.62%
NOC	74 Outperform	$74.38B	20.34	25.41%	1.78%	0.61%	77.28%
GD	74 Outperform	$80.75B	20.88	18.23%	2.00%	14.11%	17.65%
AXON	72 Outperform	$57.83B	180.54	15.13%	―	32.48%	24.29%
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%

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.