Axon Enterprise (NASDAQ:AXON) Posts Quarterly Earnings Results, Beats Estimates By $0.55 EPS

Axon Enterprise (NASDAQ:AXON) announced its quarterly earnings data on Tuesday. The biotechnology company reported $2.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.60 by $0.55, FiscalAI reports. Axon Enterprise had a net margin of 10.05% and a return on equity of 4.29%. The company had revenue of $796.72 million for the quarter, compared to analysts’ expectations of $755.29 million. During the same quarter in the previous year, the company posted $2.08 EPS. The business’s revenue was up 38.5% compared to the same quarter last year.

Here are the key takeaways from Axon Enterprise’s conference call:

• Axon reported a major bookings acceleration, with full-year bookings topping $7 billion (up >40% YoY) and Q4 bookings up >50%, which management called the start of a multi-year trend.
• Strong operating metrics in Q4 — revenue of $797 million (+39% YoY), ARR > $1.3 billion (+35% YoY), net revenue retention of 125%, and adjusted EBITDA of $206 million (25.9% margin) demonstrating durable software-driven growth and leverage.
• Management gave a robust 2026 outlook (revenue growth of 27%–30% and adjusted EBITDA margin of 25.5%) and set a 2028 target of ~$6 billion revenue with a ~28% adjusted EBITDA margin, signaling aggressive multi-year ambition.
• Product momentum and AI adoption are key growth pillars — new product bookings (Air, AI, Fusus) exceeded $1 billion, the AI Era Plan accounted for about $750 million of bookings, and management emphasized a vision to build a global sensor + AI ecosystem with privacy-by-design as a competitive advantage.
• Near-term headwinds include tariff-related cost pressure and product-mix volatility (adjusted gross margin down to 61.1% sequentially), lower free cash flow conversion in 2025 due to inventory and collections timing, and expected Q1 seasonality (weaker bookings and cash conversion) that could pressure near-term cash flow.

Axon Enterprise Stock Performance

Shares of Axon Enterprise stock opened at $442.51 on Wednesday. Axon Enterprise has a 12 month low of $396.41 and a 12 month high of $885.91. The company has a quick ratio of 2.89, a current ratio of 3.12 and a debt-to-equity ratio of 0.57. The stock has a market cap of $34.92 billion, a PE ratio of 140.04, a price-to-earnings-growth ratio of 12.76 and a beta of 1.48. The business has a fifty day simple moving average of $539.81 and a 200-day simple moving average of $628.76.

Axon Enterprise News Roundup

Here are the key news stories impacting Axon Enterprise this week:

• Positive Sentiment: Q4 results beat expectations — Axon reported revenue of ~$796.7M (up ~38.5% YoY) and adjusted EPS $2.15 vs. consensus ~$1.60; management also set a 2026 outlook (strong revenue growth and margin targets) that reassures growth and profitability execution. Axon reports Q4 2025 revenue of $797 million, up 39% year over year
• Positive Sentiment: Raised medium‑term ambition — Axon introduced 2028 targets (~$6B revenue and ~28% Adj. EBITDA margin) and provided 2026 guidance (double‑digit revenue growth and stronger margins), which materially improves the growth runway investors were looking for. Axon Takes Aim At AI Fears, Targets $6 Billion In 2028 Sales
• Positive Sentiment: AI momentum driving bookings — Management is pitching Axon as an AI-enabled services vendor for public safety; higher AI-driven bookings were called out by multiple outlets as a near-term revenue/margin catalyst. That narrative is helping re-rate the name after investor concern about AI disruption. The maker of Taser stun guns says it’s becoming an AI company as bookings surge
• Positive Sentiment: Sell‑side support — Needham reiterated a Buy and kept a $600 price target, reflecting increased confidence from at least one analyst following the quarter and guidance. Analyst backing amplifies today’s upside. Axon: Strong Q4 Momentum and Upgraded Long-Term Outlook Underpin Buy Rating
• Neutral Sentiment: Federal/DHS opportunity noted — Coverage highlights a potential lift from DHS and other federal body‑camera rollouts; this is a tangible TAM expansion but timing/contract cadence can be lumpy. DHS Body Camera Plan Puts Axon’s Growth Potential And Valuation In Focus
• Negative Sentiment: Valuation and recent drawdown remain risks — Despite today’s rally, AXON still trades with a high P/E and had a sharp pullback in recent weeks amid investor concerns about AI disruption and valuation — some outlets question whether downside remains if execution slips. Can Axon Stock Fall To $300?

Analysts Set New Price Targets

Several research analysts have issued reports on AXON shares. Barclays decreased their price target on shares of Axon Enterprise from $861.00 to $702.00 and set an “overweight” rating on the stock in a research report on Thursday, November 6th. The Goldman Sachs Group reduced their price objective on Axon Enterprise from $940.00 to $800.00 and set a “buy” rating for the company in a research note on Wednesday, November 5th. William Blair reaffirmed an “outperform” rating on shares of Axon Enterprise in a research report on Tuesday, February 3rd. Northcoast Research upgraded Axon Enterprise from a “neutral” rating to a “buy” rating and set a $742.00 price target for the company in a research report on Tuesday, January 6th. Finally, Piper Sandler dropped their price target on Axon Enterprise from $893.00 to $753.00 and set an “overweight” rating on the stock in a research note on Wednesday, November 5th. Fifteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $786.43.

Insider Transactions at Axon Enterprise

In other news, Director Jeri Williams sold 100 shares of the stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $550.63, for a total value of $55,063.00. Following the completion of the sale, the director directly owned 1,316 shares of the company’s stock, valued at $724,629.08. This represents a 7.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Brittany Bagley sold 2,000 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $580.00, for a total transaction of $1,160,000.00. Following the sale, the chief financial officer owned 103,501 shares of the company’s stock, valued at approximately $60,030,580. This represents a 1.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 48,040 shares of company stock worth $27,249,338. 5.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Axon Enterprise

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Darwin Wealth Management LLC acquired a new stake in shares of Axon Enterprise during the 2nd quarter valued at $37,000. AlphaCentric Advisors LLC acquired a new stake in Axon Enterprise during the fourth quarter valued at $34,000. Strive Financial Group LLC acquired a new stake in Axon Enterprise during the fourth quarter valued at $41,000. Van ECK Associates Corp purchased a new position in Axon Enterprise in the third quarter valued at about $60,000. Finally, Advocate Investing Services LLC acquired a new position in Axon Enterprise in the 4th quarter worth about $57,000. Hedge funds and other institutional investors own 79.08% of the company’s stock.

About Axon Enterprise

Axon Enterprise, Inc develops technology and weapons systems for public safety and law enforcement agencies, combining hardware, software and cloud services. The company’s hardware portfolio includes conducted energy weapons (commonly known as TASER devices), body-worn cameras and in-car camera systems. Axon pairs these devices with a suite of connected products and accessories designed to capture, store and manage field evidence.

Beyond hardware, Axon operates a subscription-based software platform for digital evidence management, evidence review and records management.