Axon Enterprise (NASDAQ:AXON) Shares Gap Up on Earnings Beat

Axon Enterprise, Inc (NASDAQ:AXON) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $442.51, but opened at $498.43. Axon Enterprise shares last traded at $527.58, with a volume of 1,077,152 shares traded.

The biotechnology company reported $2.15 earnings per share for the quarter, beating the consensus estimate of $1.60 by $0.55. Axon Enterprise had a return on equity of 4.29% and a net margin of 10.05%.The business had revenue of $796.72 million during the quarter, compared to analyst estimates of $755.29 million. During the same quarter in the prior year, the firm posted $2.08 earnings per share. The company’s revenue was up 38.5% on a year-over-year basis.

Key Axon Enterprise News

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

• Positive Sentiment: Q4 beats and strong outlook — Axon reported Q4 revenue of about $797M (up ~39% YoY) and non‑GAAP EPS of $2.15, topping Street estimates; management set a 2026 growth outlook and introduced 2028 targets of $6B revenue and improved margins, driving optimism on top‑line momentum. Axon Enterprise beats fourth-quarter profit estimates, shares rise
• Positive Sentiment: AI bookings and product mix — Management cited accelerating AI-driven bookings across its device+software ecosystem, boosting recurring software revenue visibility and investor confidence in higher-margin growth. The maker of Taser stun guns says it’s becoming an AI company as bookings surge
• Positive Sentiment: Federal demand tailwind — Reports point to rising government spending (including DHS/body‑camera initiatives) and increased federal enforcement budgets that benefit Axon’s cameras, TASERs and evidence-management software. Analysts see this as a durable addressable market expansion. Axon shares rise as Taser-maker’s profit gets boost from government spending
• Neutral Sentiment: Analyst reaction — Some brokers reiterated or raised ratings (Needham maintained a Buy with a $600 PT), reflecting improved visibility; market commentary and earnings snapshots are circulating as investors re‑price expectations. Axon: Strong Q4 Momentum and Upgraded Long-Term Outlook Underpin Buy Rating
• Neutral Sentiment: Broader market context — Axon is appearing on “movers” lists as traders position for earnings and macro catalysts (AI names, Nvidia earnings) that can amplify intraday moves but don’t change company fundamentals. These Stocks Are Today’s Movers
• Negative Sentiment: Valuation and execution risk — Despite the beat, AXON still trades at a rich multiple and has faced sharp recent drawdowns amid AI‑related sentiment swings; some commentary warns the stock could fall if execution on aggressive 2028 targets slips. Can Axon Stock Fall To $300?

Analyst Upgrades and Downgrades

AXON has been the topic of a number of research reports. UBS Group dropped their target price on shares of Axon Enterprise from $840.00 to $610.00 and set a “neutral” rating on the stock in a report on Wednesday, November 5th. Piper Sandler decreased their price target on shares of Axon Enterprise from $753.00 to $690.00 and set an “overweight” rating on the stock in a research report on Wednesday. Craig Hallum reiterated a “buy” rating on shares of Axon Enterprise in a research report on Wednesday. Morgan Stanley cut their target price on Axon Enterprise from $760.00 to $713.00 and set an “overweight” rating on the stock in a research report on Wednesday, December 17th. Finally, Barclays reduced their target price on Axon Enterprise from $861.00 to $702.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. Fifteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $773.00.

Insider Buying and Selling

In other Axon Enterprise news, CFO Brittany Bagley sold 2,000 shares of Axon Enterprise stock in a transaction dated 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 transaction, the chief financial officer owned 103,501 shares of the company’s stock, valued at $60,030,580. The trade was a 1.90% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, President Joshua Isner sold 20,000 shares of the company’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $552.60, for a total value of $11,052,000.00. Following the completion of the transaction, the president owned 249,502 shares in the company, valued at $137,874,805.20. This 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 have sold 48,040 shares of company stock valued at $27,249,338. 5.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Creative Financial Designs Inc. ADV purchased a new stake in Axon Enterprise in the 4th quarter worth approximately $28,000. Stone House Investment Management LLC acquired a new position in shares of Axon Enterprise in the third quarter worth $29,000. New Millennium Group LLC purchased a new stake in shares of Axon Enterprise during the third quarter worth $29,000. Sound Income Strategies LLC boosted its position in Axon Enterprise by 550.0% during the fourth quarter. Sound Income Strategies LLC now owns 52 shares of the biotechnology company’s stock valued at $30,000 after purchasing an additional 44 shares during the last quarter. Finally, Camelot Portfolios LLC purchased a new position in Axon Enterprise in the fourth quarter valued at about $30,000. 79.08% of the stock is owned by hedge funds and other institutional investors.

Axon Enterprise Stock Performance

The firm has a 50-day simple moving average of $539.81 and a two-hundred day simple moving average of $628.76. The company has a current ratio of 3.12, a quick ratio of 2.89 and a debt-to-equity ratio of 0.57. The company has a market capitalization of $41.53 billion, a price-to-earnings ratio of 166.55, a price-to-earnings-growth ratio of 12.76 and a beta of 1.48.

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.