Axon Enterprise (NASDAQ:AXON) Issues Quarterly Earnings Results

Axon Enterprise (NASDAQ:AXON) released its quarterly earnings data on Tuesday. The biotechnology company reported $2.15 EPS for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $796.72 million during the quarter, compared to analysts’ expectations of $755.29 million. During the same period in the previous year, the business posted $2.08 earnings per share. The company’s revenue for the quarter 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

AXON opened at $442.51 on Wednesday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.89 and a current ratio of 3.12. Axon Enterprise has a 52-week low of $396.41 and a 52-week high of $885.91. The firm has a market cap of $34.92 billion, a P/E ratio of 140.04, a price-to-earnings-growth ratio of 12.76 and a beta of 1.48. The business’s fifty day moving average is $539.81 and its 200-day moving average is $628.76.

Trending Headlines about Axon Enterprise

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

• Positive Sentiment: Axon beat Q4 earnings and revenue estimates — adjusted EPS came in at $2.15 and revenue was about $797M (up ~39% y/y), driven by strength in devices and software. Axon Enterprise (AXON) Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Company set 2026 guidance and longer-term targets that were viewed as bullish: revenue guidance around $3.5–3.6B and a 2026 outlook calling for 27–30% revenue growth with a 25.5% adjusted EBITDA margin, plus a 2028 target of ~$6B revenue and a 28% EBITDA margin — this raised growth visibility. Axon reports Q4 2025 revenue of $797 million, up 39% year over year
• Positive Sentiment: Market reports and wire coverage highlight the beat and upbeat outlook, which pushed shares higher in after-hours trading. Axon Enterprise beats fourth-quarter profit estimates, shares rise
• Positive Sentiment: Federal demand tailwind — reporting on a DHS body-camera expansion highlights potential new large-scale deployments that could widen Axon’s addressable market for cameras and its Evidence.com ecosystem. DHS Body Camera Plan Puts Axon’s Growth Potential And Valuation In Focus
• Neutral Sentiment: Analyst and preview coverage framed the quarter as a test of Axon’s execution after aggressive expansion — analysts remain generally bullish but are watching margin conversion and government wins. Axon Enterprise Earnings Preview: What Wall Street Is Watching
• Negative Sentiment: Some bearish/valuation pressure remains: coverage noted the stock’s big pullback from recent highs and firms like Needham trimmed price targets, keeping longer-term sentiment mixed despite the beat. Needham & Company LLC Cuts Axon Enterprise (NASDAQ:AXON) Price Target to $600.00
• Negative Sentiment: ETF/flow noise: liquidation of leveraged ETFs that tracked Axon (AXUP) could reduce some near-term speculative demand and add volatility. Liquidation of T-REX 2X LONG UPXI Daily Target ETF (PXIU), T-REX 2X LONG AXON Daily Target ETF (AXUP), and T-REX 2X LONG BKNG Daily Target ETF (BKNU)
• Negative Sentiment: Valuation remains a concern for some investors — Axon trades at a high P/E and its 12-month decline has led analysts and commentators to debate downside risk despite strong growth. Can Axon Stock Fall To $300?

Analysts Set New Price Targets

AXON has been the subject of several research analyst reports. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Axon Enterprise in a report on Monday, December 29th. Piper Sandler reduced their price objective on Axon Enterprise from $893.00 to $753.00 and set an “overweight” rating for the company in a report on Wednesday, November 5th. Needham & Company LLC lowered their target price on Axon Enterprise from $870.00 to $600.00 and set a “buy” rating on the stock in a research note on Friday, February 20th. The Goldman Sachs Group dropped their price target on Axon Enterprise from $940.00 to $800.00 and set a “buy” rating for the company in a report on Wednesday, November 5th. Finally, Northcoast Research upgraded Axon Enterprise from a “neutral” rating to a “buy” rating and set a $742.00 price objective on the stock in a research report on Tuesday, January 6th. Fifteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $786.43.

Insider Activity

In other Axon Enterprise news, CAO Jennifer H. Mak sold 1,134 shares of the firm’s stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $600.00, for a total value of $680,400.00. Following the transaction, the chief accounting officer directly owned 13,740 shares of the company’s stock, valued at $8,244,000. This trade represents a 7.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, President Joshua Isner sold 20,000 shares of the company’s stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $552.60, for a total transaction of $11,052,000.00. Following the sale, the president directly owned 249,502 shares of the company’s stock, valued at approximately $137,874,805.20. This trade represents a 7.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 48,040 shares of company stock valued at $27,249,338. Company insiders own 5.70% of the company’s stock.

Hedge Funds Weigh In On Axon Enterprise

A number of institutional investors have recently modified their holdings of the business. Sunbelt Securities Inc. boosted its stake in Axon Enterprise by 324.1% in the fourth quarter. Sunbelt Securities Inc. now owns 123 shares of the biotechnology company’s stock valued at $70,000 after buying an additional 94 shares in the last quarter. Corient Private Wealth LLC boosted its stake in shares of Axon Enterprise by 579.2% in the 4th quarter. Corient Private Wealth LLC now owns 65,447 shares of the biotechnology company’s stock valued at $37,169,000 after purchasing an additional 55,811 shares in the last quarter. Strive Financial Group LLC bought a new stake in shares of Axon Enterprise during the 4th quarter valued at approximately $41,000. Raymond James Financial Inc. grew its holdings in shares of Axon Enterprise by 0.8% during the 4th quarter. Raymond James Financial Inc. now owns 404,990 shares of the biotechnology company’s stock valued at $231,015,000 after purchasing an additional 3,136 shares during the last quarter. Finally, Vident Advisory LLC increased its position in Axon Enterprise by 15.3% during the 4th quarter. Vident Advisory LLC now owns 4,145 shares of the biotechnology company’s stock worth $2,354,000 after purchasing an additional 550 shares in the last quarter. Institutional investors and hedge funds own 79.08% of the company’s stock.

Axon Enterprise Company Profile

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.