Axon Enterprise, Inc. (AXON), headquartered in Scottsdale, Arizona, develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand. Valued at $43.6 billion by market cap, the company offers law enforcement, military, and self-defense solutions including taser devices, cameras, mobile applications, training services, hardware extended warranties, along with Axon docks, cartridges, and batteries.
Shares of this leader in the public safety technology sector have considerably outperformed the broader market over the past year. AXON has gained 110.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17.5%. However, in 2025, AXON stock is down 3.7%, compared to SPX’s 1.3% rise on a YTD basis.
Zooming in further, AXON’s outperformance is also apparent compared to Invesco Aerospace & Defense ETF (PPA). The exchange-traded fund has gained about 19.2% over the past year. However, the ETF’s marginal gains on a YTD basis outshine the stock’s single-digit losses over the same time frame.
AXON’s strong performance is fueled by top-line growth, operational efficiency, AI-driven solutions, and a growing customer base. Its Draft One generative AI tool reached a $100-million revenue pipeline faster than any previous product, while major launches like Taser 10, the Axon Fusus platform, and Axon Air as well as AI-integrated products have solidified its leadership in law enforcement technology. Furthermore, significant international bookings and AXON breaking into AI, software, drones, international markets, and more, underscore its effective global expansion.
On Feb. 25, AXON reported its Q4 results, and its shares closed up more than 15% in the following trading session. Its adjusted EPS of $2.08 exceeded Wall Street expectations of $1.53. The company’s revenue was $575.1 million, topping Wall Street forecasts of $566.1 million. AXON expects full-year revenue to be between $2.6 billion and $2.7 billion.
For fiscal 2025, ending in December, analysts expect AXON’s EPS to grow 59.3% to $3.33 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
Among the 15 analysts covering AXON stock, the consensus is a “Strong Buy.” That’s based on 10 “Strong Buy” ratings, three “Moderate Buys,” and two “Holds.”
This configuration is less bullish than a month ago, with 13 analysts suggesting a “Strong Buy.”
On Feb. 26, Argus analyst John Staszak kept a “Buy” rating on AXON and lowered the price target to $700, implying a potential upside of 22.3% from current levels.
The mean price target of $672.14 represents a 17.4% premium to AXON’s current price levels. The Street-high price target of $800 suggests an ambitious upside potential of 39.8%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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