Axon Enterprise’s Performance Outpaces Market Despite Recent Setbacks

Axon Enterprise, Inc. (AXON), based in Scottsdale, Arizona, specializes in developing, manufacturing, and selling conducted energy devices (CEDs) under the TASER brand. With a market capitalization of $43.6 billion, the company provides solutions for law enforcement, military, and personal defense. Their offerings include TASER devices, cameras, mobile applications, training services, extended hardware warranties, Axon docks, cartridges, and batteries.

Over the past year, Axon has significantly outperformed the broader market. AXON shares have risen by 110.8%, contrasting sharply with the S&P 500 Index ($SPX), which has seen an increase of nearly 17.5%. However, in 2025, so far, AXON has declined by 3.7%, whereas the SPX has gained 1.3% year-to-date.

Active Investor: FREE newsletter going behind the headlines on the hottest stocks to uncover new trade ideas.

Further analysis reveals that AXON’s strong performance is notable when compared to the Invesco Aerospace & Defense ETF (PPA), which has gained about 19.2% over the past year. Yet, the ETF’s modest year-to-date gains highlight AXON’s struggle, with the stock facing single-digit losses in the same period.

Several factors have contributed to AXON’s success, including robust revenue growth, operational efficiency, and the integration of AI-driven solutions. The company’s Draft One generative AI tool achieved a $100-million revenue pipeline in record time, outpacing all previous products. Key product launches, such as Taser 10, the Axon Fusus platform, and Axon Air, have bolstered its standing in law enforcement technology. Additionally, AXON’s expansion into AI, software, drones, and international markets illustrates effective global growth strategies.

In its latest Q4 report on February 25, AXON saw its shares climb over 15% in the subsequent trading session. The company reported an adjusted earnings per share (EPS) of $2.08, exceeding Wall Street’s expectations of $1.53. Revenues reached $575.1 million, surpassing forecasts of $566.1 million. Looking ahead, AXON projects full-year revenue between $2.6 billion and $2.7 billion.

For fiscal year 2025, which concludes in December, analysts predict AXON’s EPS will increase by 59.3% to $3.33 on a diluted basis. However, the company’s earnings surprise record has not been stellar, with three misses among the last four quarters, alongside one instance of beating expectations.

Among the 15 analysts tracking AXON stock, consensus ratings suggest a “Strong Buy,” reflected by 10 “Strong Buy” ratings, three “Moderate Buys,” and two “Holds.” This is a slight decline from a month ago when 13 analysts recommended a “Strong Buy.”

On February 26, Argus analyst John Staszak maintained a “Buy” rating on AXON but revised the price target down to $700, indicating a potential upside of 22.3% from current levels. The average price target of $672.14 suggests a 17.4% premium over AXON’s present price, while the highest targeted price of $800 indicates a possible upside of 39.8%.

On the date of publication, Neha Panjwani did not hold (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.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.