Axon Enterprise, Inc. develops, manufactures, and sells conducted energy weapons (DEC) under the TASER brand name in the United States and internationally. The company is headquartered in Scottsdale, Arizona.
| Revenue (TTM) | $3.22B |
| Gross Profit (TTM) | $1.92B |
| EBITDA | $165.11M |
| Operating Margin | 5.17% |
| Return on Equity | 6.22% |
| Return on Assets | 0.51% |
| Revenue/Share (TTM) | $40.47 |
| Book Value | $45.23 |
| Price-to-Book | 13.55 |
| Price-to-Sales (TTM) | 15.47 |
| EV/Revenue | 15.82 |
| EV/EBITDA | 125.36 |
| Quarterly Earnings Growth (YoY) | -18.20% |
| Quarterly Revenue Growth (YoY) | 35.30% |
| Shares Outstanding | $81.24M |
| Float | $77.43M |
| % Insiders | 4.26% |
| % Institutions | 91.16% |
Volatility is currently expanding
Axon's Software & Services momentum continues as premium software adoption and new users lift revenues, though margins remain under pressure.
Axon's strong Q2 revenue growth and raised outlook support its long-term prospects, but high costs, debt and valuation temper near-term appeal.
Axon's Connected Devices segment is surging as TASER, body cameras and counter-drone equipment drive strong revenue growth.
AI-driven capabilities on the legacy hardware/software offerings and the prior inventory buildout have boosted AXON's contracted bookings metric. The razor-and-blade model drives hardware adoption, which increases attach rates for higher-margin software/services, resulting in 95%+ of revenues tied to subscription plans. AXON has twice raised the FY2026 guidance while offering promising FY2028 targets, with it explaining the outsized stock price rally.
Axon Enterprise delivered 35% YoY revenue growth in Q2, with strong performance across all segments and standout AI-driven revenue expansion. Annual recurring revenue reached $1.6 billion, supported by a 126% net retention rate, highlighting the stickiness and predictability of AXON's business model. Concerns remain over AXON's high stock-based compensation, significant shareholder dilution, and negative operating cash flow despite headline profitability.
Shares of Axon Enterprise (NASDAQ:AXON | AXON Price Prediction) are up 6% in midday trading Tuesday, trading near $634 after opening the session at $596.
Axon Enterprise has evolved into a public safety operating system, with AI Era and Dedrone driving rapid growth and diversification. Q2 2026 saw 35% revenue growth, 39% ARR growth to $1.6B, and future contracted bookings reaching $15.1B, but valuation remains demanding. I maintain a Hold rating: at $571, AXON trades at 54x 2027E and 41x 2028E earnings, with FCF yield under 1% and high SBC-driven dilution.
Axon delivered robust Q2 results, with 35% YoY revenue growth and strong AI Era business momentum. Future demand remains solid, evidenced by a 41% YoY increase in bookings and improved net revenue retention to 126%. Gross margin contracted 40 bps YoY, but adjusted EBITDA margin expanded 110 bps, highlighting operational leverage.
Axon tops revenue estimates as strong demand across connected devices and software prompt higher 2026 revenue growth guidance despite an EPS miss.
Axon lifts 2026 revenue growth outlook to 32%-34% after Q2 earnings as software, AI and Dedrone demand expands, even as memory cost pressure near-term margins.
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