Axon Enterprise, Inc. (AXON)
NASDAQ:AXON
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Axon Enterprise
(NASDAQ:AXON)
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Rating:61Neutral
Price Target:
$447.00
▲(10.96% Upside)
Action:Reiterated
Date:06/02/26
The score is held back primarily by weakening cash-flow conversion and compressed profitability versus 2024, alongside a very high P/E that offers little valuation cushion. Offsetting these are a strongly positive earnings call with raised growth guidance, accelerating ARR/NRR and bookings momentum, and modestly improving near-term technical momentum despite a still-weak longer-term trend.
Positive Factors
Recurring revenue & retention
A $1.5B ARR base growing 35% with 125% NRR signals durable subscription revenue and strong upsell within existing customers. This recurring backbone increases revenue visibility, supports steady cash flows, and reduces reliance on one‑time hardware sales across multi-year agency budgets.
Negative Factors
Weakened cash conversion
A sharp decline in FCF to ~$20M TTM and falling operating cash flow undermines balance sheet optionality. Lower cash conversion constrains reinvestment, M&A funding or shareholder returns, and makes execution on inventory and supply investments dependent on improving FCF conversion later in the year.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue & retention
A $1.5B ARR base growing 35% with 125% NRR signals durable subscription revenue and strong upsell within existing customers. This recurring backbone increases revenue visibility, supports steady cash flows, and reduces reliance on one‑time hardware sales across multi-year agency budgets.
Read all positive factors
Axon Enterprise Key Performance Indicators (KPIs)
Axon Enterprise (AXON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.13B
Dividend YieldN/A
Average Volume (3M)1.23M
Price to Earnings (P/E)164.5
Beta (1Y)1.47
Revenue Growth33.95%
EPS Growth-40.50%
CountryUS
Employees5,100
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)2.58
Shares Outstanding80,602,070
10 Day Avg. Volume982,092
30 Day Avg. Volume1,232,438
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 Cap1.04
Enterprise Value/Revenue11.89
Enterprise Value/Gross Profit20.04
Enterprise Value/Ebitda91.82
Forecast
1Y Price Target
$670.47Price Target Upside66.43% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)7.69
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 through a mix of hardware sales and recurring software/service revenue tied to long-term customer relationships, primarily with public sector agencies.
1) Hardware revenue (devices and sensors)
- Axon sells TASER devices and rela...
Axon Enterprise Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call was strongly positive: broad-based double-digit growth across revenue (+34%), ARR (+35%) and NRR (125%), rapid AI and Dedrone adoption (AI bookings +140%, AI revenue +700% YoY, Dedrone bookings +500%, revenue +300%+), upgraded guidance (30%–32% revenue growth) and sizable backlog ($14.3B, +44%). Management also proactively invested in inventory and reiterated margin and FCF targets. Key near-term challenges relate to inflationary component costs, inventory-driven cash timing, lower early-stage hardware margins (platform solutions/Dedrone) and execution risk for nascent businesses (Axon 911, Outpost). On balance, the highlights significantly outweigh the lowlights, driven by accelerating product adoption, geographic expansion and strong bookings.Positive Updates
Strong Revenue Growth
Total revenue of $807 million, up 34% year-over-year; marks ninth consecutive quarter with >30% growth.
Negative Updates
Inflationary and Component Cost Pressure
Management acknowledged tariffs and inflationary component costs (including memory) as factors considered in guidance; memory costs included in input assumptions even though impact to gross margin is claimed not material to break out.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of $807 million, up 34% year-over-year; marks ninth consecutive quarter with >30% growth.
Read all positive updates
Company Guidance
Management raised 2026 revenue guidance to +30%–32% growth and reiterated a full‑year adjusted EBITDA margin target of 25.5% (Q1 adjusted EBITDA margin ~25%), while expecting roughly $450M of free cash flow for the year and materially improved free‑cash‑flow conversion in H2; they also forecast full‑year stock‑based compensation of ~$590–$620M with average annual dilution targeted below 2.5%. Key operating metrics cited in support include Q1 revenue of $807M (+34% YoY), software & services $355M (+35%), connected devices $453M (+33%), AI product revenue >+700% YoY, ARR $1.5B (+35% YoY), net revenue retention 125%, future contracted bookings $14.3B (+44%), AI bookings +140% YoY and Dedrone bookings +500% YoY; guidance assumes continued tariffs/inflationary component costs (including memory), product‑mix shifts, and inventory investments with operating leverage expected in the back half of the year.Axon Enterprise Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.98B | 2.78B | 2.08B | 1.56B | 1.19B | 863.38M |
| Gross Profit | 1.77B | 1.66B | 1.24B | 955.45M | 728.64M | 531.09M |
| EBITDA | 386.22M | 196.37M | 437.03M | 183.37M | 227.62M | -117.11M |
| Net Income | 206.24M | 124.91M | 377.03M | 175.78M | 147.14M | -60.02M |
Balance Sheet | ||||||
| Total Assets | 7.07B | 7.00B | 4.47B | 3.41B | 2.85B | 1.69B |
| Cash, Cash Equivalents and Short-Term Investments | 718.92M | 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 | 3.53B | 3.76B | 2.15B | 1.79B | 1.58B | 640.36M |
| Stockholders Equity | 3.53B | 3.24B | 2.33B | 1.61B | 1.27B | 1.05B |
Cash Flow | ||||||
| Free Cash Flow | 19.51M | 75.08M | 329.53M | 128.99M | 179.25M | 74.22M |
| Operating Cash Flow | 154.03M | 211.34M | 408.31M | 189.26M | 235.36M | 124.49M |
| Investing Cash Flow | -639.65M | -724.93M | -490.57M | 12.48M | -830.97M | 252.56M |
| Financing Cash Flow | -153.05M | 1.25B | -45.44M | 41.31M | 598.10M | -174.18M |
Axon Enterprise Technical Analysis
Negative
402.85
Price Trends
412.98
Positive
444.83
Negative
544.49
Negative
Market Momentum
5.16
Positive
45.73
Neutral
12.64
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXON, the sentiment is Negative. The current price of 402.85 is below the 20-day moving average (MA) of 443.62, below the 50-day MA of 412.98, and below the 200-day MA of 544.49, indicating a neutral trend. The MACD of 5.16 indicates Positive momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 12.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $54.92B | 31.81 | 8.87% | 1.61% | 5.79% | 9.31% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $74.07B | 16.19 | 28.05% | 1.55% | 4.95% | 26.05% | |
61 Neutral | $34.13B | 164.54 | 6.58% | ― | 33.95% | -40.50% | |
60 Neutral | $10.17B | 326.00 | 1.26% | ― | 21.82% | 34.38% | |
56 Neutral | $101.56M | -6.75 | -20.76% | ― | -4.78% | -90.32% |
* Industrials Sector Average
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Axon Enterprise Corporate Events
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.