Start here if you're new
what it is
Axon sells Tasers, police cameras, and the software that stores the footage after the arrest.
how it gets paid
Last year Axon Ent made $2.8B in revenue. TASER weapons was the main engine at $0.92B, or 33% of sales.
why it's growing
Revenue grew 33.5% last year. 60.4% gross margin matters because margin → money left after making the product → so what: Axon already has software-like economics inside a hardware-heavy story.
what just happened
Revenue hit $2.0B, up 179% vs. prior year, while gross margin stayed at 60.4%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
65/100 earnings predictability — reasonably predictable
62.7x trailing p/e — you're paying up for this one
27.0% return on capital — every dollar works hard here
xvary composite: 45/100 — below average
What they do
Axon sells Tasers, police cameras, and the software that stores the footage after the arrest.
Axon wins because its hardware and software travel together. You buy the TASER, then the body camera, then the evidence platform, and leaving gets expensive and messy. Return on capital was 27.0% and return on equity was 34%, which is finance-speak for every dollar kept in the business has been earning far more than a plain industrial company.
How they make money
$2.8B
annual revenue · their business grew +33.5% last year
TASER weapons
$0.92B
on-officer cameras
$0.64B
digital evidence management
$0.83B
virtual training and services
$0.28B
in-car cameras and other
$0.13B
The products that matter
conducted-energy devices
TASER
part of a $2.8B business
the TASER is the wedge product. this page does not break out its revenue, but the full business reached $2.8B and grew 33.5% last year.
entry point
officer video hardware
Body Cameras
latest quarter: $711M total revenue
the camera matters because footage has to live somewhere. the latest quarter produced $711M in total revenue, which tells you demand is still there even if quarterly profitability got messy.
ecosystem pull
evidence management software
Evidence.com
62.7x earnings needs this layer
this is the strategic prize. the page gives no segment revenue, but the stock's 62.7x trailing p/e only makes sense if software and services keep becoming a bigger part of the story.
valuation hinge
Key numbers
62.7x
trailing p/e
Price-to-earnings ratio → how many years of current profit you're paying for → you are paying a growth-stock price for a company still showing a -2.2% operating margin.
$2.8B
annual revenue
Revenue → total sales → Axon is already a multibillion-dollar company, and it still grew 33.5% vs. prior year.
27.0%
return on capital
Return on capital → profit earned on money put into the business → 27.0% says Axon has been unusually efficient for an industrial name.
$537
18-month target
Target price → one research firm's 18-month estimate of fair value → that is about 25% above $429.67, but the low end of the range is still $320.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $1.7B (5% of capital)
- net profit margin 22.6% — keeps 23 cents of every dollar in revenue
- return on equity 34% — $0.34 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in AXON 3 years ago → it's now worth $22,580.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $2.0B, up 179% vs. prior year, while gross margin stayed at 60.4%.
The hard part is the contrast. The latest quarter showed huge growth, but the most recent EPS print also matched estimates at $2.15, so the surprise was growth, not a classic estimate blowout.
$2.0B
revenue
$1.48
eps
60.4%
gross margin
the number that mattered
60.4% gross margin matters because margin → money left after making the product → so what: Axon already has software-like economics inside a hardware-heavy story.
-
axon has the wherewithal to keep revenues ramping higher.
-
at press time, the company was preparing to release results for the final quarter of 2025.
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we believe full-year revenues amounted to $2.75 billion, up 32%.
-
this year, a gain of 30%, to $3.575 billion, is conceivable.
-
though scale is building, axon can probably score another year of strong top-line growth (27%), to $4.55 billion.there is good uptake from u.s. and international policing agencies for electronic-subjugation, body cam, and patrol car camera offerings.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a slowdown in police budget approvals hitting taser, camera, and evidence.com spending.
med
public-safety budgets slow down
Axon sells into law-enforcement and public-safety customers. if procurement cycles stretch or city budgets tighten, the pain hits hardware first and software expansion second.
because this page gives no segment breakout, you should assume 100% of the current $2.8B revenue base is exposed to the pace of agency spending.
med
multiple compression
62.7x trailing earnings and roughly 47.7x forward earnings leave very little room for a merely good quarter. this is not a cheap stock waiting to be discovered. it's an expensive one being asked to stay expensive.
if revenue growth cools from 33.5% while margins stay uneven, valuation can fall even if the business itself keeps growing.
med
quarterly profitability stays lumpy
the latest quarter posted -$0.03 EPS and a 4.5% margin against a full-year operating margin of 25.0%. that's a wide gap. one messy quarter is noise. a pattern is a thesis break.
the stock's premium setup depends on the market believing today's hardware sales become tomorrow's recurring software economics.
if growth slows or margins stop normalizing, a premium multiple on a $34B company can compress faster than the underlying business does.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
whether the next quarter looks more like the year or the last print
full-year results were strong. the latest quarter was not. if margin bounces from 4.5% and EPS turns positive again, the valuation debate gets easier.
risk
police budget and procurement headlines
this business runs through public-safety purchasing cycles. contract timing matters more here than it does for a normal enterprise software name.
metric
revenue growth staying above the valuation bar
33.5% growth is why investors tolerate 62.7x trailing earnings. if that growth rate cools hard, the multiple probably follows.
trend
evidence.com becoming the center of gravity
the page does not disclose software mix, which means you need to listen closely for any sign recurring revenue is becoming a larger share of the business.
Analyst rankings
short-term outlook
bottom 5%
momentum score 5 — the lowest rating. in human-speak, analysts think near-term relative performance could stay ugly.
risk profile
average
stability score 3 means middle-of-the-pack risk. not a bunker stock, not chaos either.
chart momentum
top 20%
technical score 2. in human-speak, the chart looks better than the short-term fundamental rank does. yes, that contradiction is real.
earnings predictability
65 / 100
predictability is decent, not pristine. that matters more when the stock trades at a premium multiple.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 621 buyers vs. 494 sellers in 3q2025. total institutional holdings: 63.2M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$320
$753
$430
current price
$537
target midpoint · +25% from current · 3-5yr high: $1035 (+140% · 25% ann'l return)
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