Axon Enterprise Reports Significant Revenue Growth Amid Stock Decline
Axon Enterprise, Inc. (AXON), based in Scottsdale, Arizona, is a leader in developing advanced technology and weaponry for law enforcement, military, and civilian applications. With a market capitalization of $42.9 billion, the company is well-known for its TASER devices, body-worn cameras, and cloud-based evidence management tools, which play a crucial role in modern public safety strategies.
As a large-cap stock—companies with a market cap of $10 billion or more—Axon Enterprise demonstrates its industry influence. Its innovative offerings, including TASER equipment and digital evidence platforms, reinforce its dominant position in the public safety sector.
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Despite these strengths, Axon’s stock has faced challenges recently, plummeting 21.8% from its peak of $715.99 recorded on February 18. Additionally, the stock has decreased by 11.4% in the last three months, underperforming the S&P 500 Index, which fell by 4.4% during the same period.
However, the long-term prospects for Axon are more positive. Over the last six months, the company’s stock price has increased by 42.4%, and over the past year, it has surged 77.2%. This contrasts sharply with the S&P 500’s slight 61 bps decline over the same half-year period and its 8.1% growth over the past year.
Examining moving averages provides further insight. Axon has consistently traded above its 200-day moving average over the past year, yet it recently fell below its 50-day moving average last month, signaling a potential shift in momentum.
Axon’s stock soared by 15.3% after the release of its impressive FY 2024 results on February 25. The company experienced a 33% year-over-year revenue growth, reaching $2.1 billion, marking its third consecutive year of over 30% annual growth. Its Axon Cloud & Services revenue jumped 44% year-over-year to $806 million. Additionally, Axon reported a net income of $377 million, reflecting its operational efficiency and profitability.
Looking ahead to fiscal 2025, Axon anticipates revenues between $2.55 billion and $2.65 billion, indicating around 25% annual growth at the midpoint. In 2024, the company achieved significant milestones, such as surpassing $1 billion in annual recurring revenue, shipping over 200,000 TASER units, and expanding its software user base to over 1 million. By focusing on innovation and customer collaboration, Axon appears well-positioned for sustainable growth and long-term stakeholder value.
Nonetheless, Axon has underperformed compared to its peer, Elbit Systems Ltd. (ESLT), which has seen a 113.7% increase over the past six months and a 101% rise over the past year.
Among the 15 analysts covering Axon’s stock, the consensus rating is a “Strong Buy.” The average price target of $688.15 suggests a 22.9% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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