Axon Enterprise (NASDAQ:AXON) Announces Earnings Results

Axon Enterprise (NASDAQ:AXON) announced its quarterly earnings data on Wednesday. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.84 by $0.04, FiscalAI reports. Axon Enterprise had a net margin of 6.90% and a return on equity of 3.78%. The firm had revenue of $904.39 million for the quarter, compared to the consensus estimate of $876.42 million. During the same period in the prior year, the company posted $2.12 earnings per share. The business’s revenue for the quarter was up 35.3% on a year-over-year basis.

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

• Q2 revenue rose 35% year over year to $904 million, marking the 10th consecutive quarter of growth above 30%. Software and services grew 36%, while connected devices increased 35%.
• Axon raised its full-year revenue growth guidance to 32%-34% from 30%-32%, citing strong first-half results and demand. Management expects normalized bookings growth to finish in the 30% range.
• Counter-drone business Dedrone surpassed $100 million in quarterly revenue, with demand expanding beyond the World Cup into federal, international, enterprise, data-center and corporate-security applications. International bookings tripled year over year, and enterprise bookings also increased roughly threefold.
• Software expansion is accelerating, with offerings outside Axon Evidence growing about 70% and the AI Era Plan nearly 700%. Annual recurring revenue grew 39% to $1.6 billion, while net revenue retention reached a record 126%.
• Although full-year adjusted EBITDA margin guidance remains approximately 25.5%, Q3 margins are expected to face pressure from higher memory and component costs and will receive no tariff-refund benefit. Free cash flow was roughly breakeven in Q2 as Axon continued heavy inventory investment, with stronger generation expected in Q4.

Axon Enterprise Stock Performance

Shares of Axon Enterprise stock opened at $609.49 on Thursday. The company has a quick ratio of 1.93, a current ratio of 2.27 and a debt-to-equity ratio of 0.49. Axon Enterprise has a twelve month low of $339.01 and a twelve month high of $885.00. The stock has a market cap of $49.12 billion, a price-to-earnings ratio of 244.78, a P/E/G ratio of 12.39 and a beta of 1.39. The company’s fifty day moving average is $509.69 and its 200 day moving average is $474.71.

Insider Buying and Selling at Axon Enterprise

In other Axon Enterprise news, President Joshua Isner sold 13,000 shares of Axon Enterprise stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $488.45, for a total transaction of $6,349,850.00. Following the transaction, the president directly owned 169,125 shares of the company’s stock, valued at approximately $82,609,106.25. The trade was a 7.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Patrick W. Smith sold 20,000 shares of Axon Enterprise stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $500.00, for a total value of $10,000,000.00. Following the transaction, the chief executive officer directly owned 3,060,997 shares in the company, valued at $1,530,498,500. The trade was a 0.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 58,989 shares of company stock worth $30,527,983 over the last 90 days. Company insiders own 4.20% of the company’s stock.

Institutional Trading of Axon Enterprise

Several institutional investors have recently added to or reduced their stakes in the stock. Sunbelt Securities Inc. boosted its stake in shares of Axon Enterprise by 324.1% in the 4th quarter. Sunbelt Securities Inc. now owns 123 shares of the biotechnology company’s stock valued at $70,000 after purchasing an additional 94 shares during the last quarter. Corient Private Wealth LLC raised its stake in Axon Enterprise by 579.2% during the fourth quarter. Corient Private Wealth LLC now owns 65,447 shares of the biotechnology company’s stock worth $37,169,000 after buying an additional 55,811 shares during the last quarter. Strive Financial Group LLC bought a new position in Axon Enterprise during the fourth quarter worth $41,000. Raymond James Financial Inc. lifted its holdings in Axon Enterprise by 0.8% in the fourth quarter. Raymond James Financial Inc. now owns 404,990 shares of the biotechnology company’s stock valued at $231,015,000 after buying an additional 3,136 shares during the period. Finally, Vident Advisory LLC lifted its holdings in Axon Enterprise by 15.3% in the fourth quarter. Vident Advisory LLC now owns 4,145 shares of the biotechnology company’s stock valued at $2,354,000 after buying an additional 550 shares during the period. 79.08% of the stock is currently owned by institutional investors.

Key Stories Impacting Axon Enterprise

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

• Positive Sentiment: Axon reported Q2 revenue of $904.4 million, up 35.3% year over year and ahead of the roughly $876 million consensus estimate. Adjusted EPS of $1.88 also exceeded several analyst estimates near $1.84. Axon reports Q2 2026 revenue of $904 million, up 35% year over year
• Positive Sentiment: Annual recurring revenue increased 39% to $1.6 billion, while net revenue retention reached 126%. Software and Services revenue rose 36%, and AI Era revenue nearly septupled year over year, highlighting strong adoption of Axon’s AI platform.
• Positive Sentiment: Platform Solutions revenue grew 123% to $150 million, and Dedrone counter-drone revenue surpassed $100 million. William Blair analyst Jonathan Ho reiterated a Buy rating, citing recurring-revenue growth, counter-drone momentum and the expanding AI opportunity. Axon Wins Fresh Buy Rating
• Positive Sentiment: Management raised its full-year revenue-growth outlook to 32%-34% and maintained its adjusted EBITDA margin target of 25.5%, providing evidence that demand remains robust.
• Negative Sentiment: Gross margin declined as professional services represented a larger revenue mix and Axon invested in scaling newer products. This raised concerns that rapid growth in AI, drones and platform solutions may initially carry lower profitability. Axon posts lower quarterly gross margin
• Negative Sentiment: GAAP net income was $29 million, down from the prior-year period, while some data providers characterized EPS as narrowly missing their $1.89 consensus estimate. Elevated valuation expectations make the stock particularly sensitive to margin weakness and any earnings-quality concerns.

Analyst Upgrades and Downgrades

AXON has been the subject of a number of recent analyst reports. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Axon Enterprise in a report on Tuesday, July 21st. Morgan Stanley set a $600.00 price objective on shares of Axon Enterprise in a research note on Thursday, May 7th. Needham & Company LLC boosted their price objective on shares of Axon Enterprise from $600.00 to $750.00 and gave the company a “buy” rating in a research report on Monday, July 6th. The Goldman Sachs Group set a $535.00 target price on Axon Enterprise in a research note on Thursday, May 7th. Finally, Zacks Research downgraded Axon Enterprise from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Thirteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $688.38.

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.