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Fifth Third Wealth Advisors LLC raised its position in Axon Enterprise, Inc (NASDAQ: AXON) by 13,721.8% during the third quarter, according to the company in its most recent disclosure with the SEC. The firm owned 158,812 shares of the biotechnology company's stock after acquiring an additional 157,663 shares during the quarter. Axon Enterprise

Axon Enterprise (AXON - Free Report) closed at $403.02 in the latest trading session, marking a +2.64% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.05%.

Prior to today's trading, shares of the maker of stun guns and body cameras had lost 14.52% lagged the Aerospace sector's loss of 4.81% and the S&P 500's gain of 0.97%.

Analysts and investors alike will be keeping a close eye on the performance of Axon Enterprise in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.94, indicating a 65.81% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $931.13 million, indicating a 31.03% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.88 per share and revenue of $3.68 billion, indicating changes of +15.04% and +32.31%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Axon Enterprise. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Axon Enterprise currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 49.8. This signifies a premium in comparison to the average Forward P/E of 30.85 for its industry.

Also, we should mention that AXON has a PEG ratio of 1.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Aerospace - Defense Equipment industry stood at 1.9 at the close of the market yesterday.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Software stocks have mostly recovered from the sell-off earlier this year. Axon has fallen on concerns that seem mostly short-term.

CWA Asset Management Group LLC grew its stake in Axon Enterprise, Inc (NASDAQ: AXON) by 2,093.9% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 22,597 shares of the biotechnology company's stock after acquiring an additional 21,567 shares

Awards span across multiple agencies, supporting federal law enforcement, homeland security and veteran healthcare missions

, /PRNewswire/ -- Axon (Nasdaq: AXON), the global public safety technology leader, today announced recent contract awards reflecting the growing adoption of its technology ecosystem across federal agencies.

From enhancing operational transparency with body-worn cameras to safeguarding VA hospitals, and protecting our nation's airspace, federal entities are leveraging Axon's connected solutions to modernize operations and better serve officers, veterans, and communities nationwide.

Recent Federal Highlights

Body-Worn Cameras and Digital Evidence Management: Federal agencies added over 22,000 Axon body-worn cameras and digital evidence management licenses, including translation tools this year. Airspace Security with Counter-Drone Technology: Under an IDIQ contract, the Department of Homeland Security (DHS) chose Axon's Dedrone platform to deliver real-time airspace monitoring, drone identification, and threat mitigation for critical infrastructure protection. TASER Devices for VA Police: The U.S. Department of Veterans Affairs (VA) added over 1,600 TASER 10 devices to begin equipping VA police officers protecting medical centers, veterans and healthcare staff. For more information: Axon: Secure Solutions for Federal Agencies 

About Axon
Axon (Nasdaq: AXON) is the global leader in public safety technology, relentlessly innovating to protect more lives in more places. Founder-led since 1993, Axon began with a mission to reimagine conflict in law enforcement and has grown into a global company serving everyone who takes on the responsibility of public safety, enterprise security, and national security — from first responders and governments to companies, frontline workers, and communities. Our trusted network connects TASER energy devices, cameras and sensors including body, fixed and in-car cameras, drones and robotics, digital evidence and records management, real-time operations, immersive training, productivity tools, and AI-driven capabilities and insights. Designed to work seamlessly together, these solutions create a connected picture of safety that helps protect people and places with greater speed, clarity, and accountability.

Non-Axon trademarks are the property of their respective owners. Axon, TASER and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.

Responsible Innovation at Axon
At Axon, innovation is inseparable from responsibility. We believe technology must serve humanity, and every product we build is designed to solve the real challenges our customers face in protecting their communities. That means developing solutions in close collaboration with the people who use them and grounding our work in transparency, fairness, accountability, and privacy. Our independent Ethics & Equity Advisory Council provides ongoing input and feedback that helps shape our approach, ensuring we remain thoughtful and aligned with community needs as technology evolves. Learn more at axon.com/responsibility.

Please visit https://investor.axon.com and https://www.axon.com/newsroom for more information.

Media Contact:
Kate MacKinnon
Vice President, Communications
[email protected]

SOURCE Axon

Krilogy Financial LLC grew its stake in shares of Axon Enterprise, Inc (NASDAQ:AXON – Free Report) by 1,337.9% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 18,980 shares of the biotechnology company’s stock after acquiring an additional 17,660 shares during the quarter. Krilogy Financial LLC’s holdings in Axon Enterprise were worth $8,019,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Keating Financial Advisory Services Inc. bought a new stake in shares of Axon Enterprise during the 2nd quarter valued at about $31,000. Washington Trust Advisors Inc. grew its stake in shares of Axon Enterprise by 1,300.0% during the 2nd quarter. Washington Trust Advisors Inc. now owns 70 shares of the biotechnology company’s stock valued at $39,000 after acquiring an additional 65 shares during the period. Wealth Enhancement Trust Services Inc. purchased a new position in Axon Enterprise during the third quarter valued at approximately $33,000. Delos Wealth Advisors LLC bought a new position in shares of Axon Enterprise in the second quarter worth approximately $45,000. Finally, Owl Creek Wealth Partners LLC raised its position in shares of Axon Enterprise by 84.8% during the 2nd quarter. Owl Creek Wealth Partners LLC now owns 85 shares of the biotechnology company’s stock valued at $48,000 after purchasing an additional 39 shares during the period. Institutional investors own 79.08% of the company’s stock.

Axon Enterprise Stock Down 0.3%
Axon Enterprise stock opened at $413.35 on Wednesday. Axon Enterprise, Inc has a fifty-two week low of $339.01 and a fifty-two week high of $764.02. The company has a market cap of $33.58 billion, a PE ratio of 171.52, a PEG ratio of 7.80 and a beta of 1.44. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.80 and a current ratio of 2.15. The business’s 50-day simple moving average is $511.34 and its two-hundred day simple moving average is $475.41.

Axon Enterprise (NASDAQ:AXON – Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The biotechnology company reported $1.88 EPS for the quarter, beating analysts’ consensus estimates of $1.84 by $0.04. The business had revenue of $904.39 million during the quarter, compared to analysts’ expectations of $876.42 million. Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%. The business’s revenue was up 35.3% compared to the same quarter last year. During the same period in the previous year, the business earned $2.12 earnings per share. Equities analysts anticipate that Axon Enterprise, Inc will post 2.12 EPS for the current year.
Analyst Upgrades and Downgrades
AXON has been the topic of several research reports. Morgan Stanley boosted their price target on shares of Axon Enterprise from $600.00 to $640.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Weiss Ratings reissued a “hold (c-)” rating on shares of Axon Enterprise in a research report on Wednesday, August 5th. Citigroup restated a “market outperform” rating on shares of Axon Enterprise in a report on Thursday, September 17th. Piper Sandler lifted their target price on Axon Enterprise from $724.00 to $732.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Finally, UBS Group raised their price objective on Axon Enterprise from $440.00 to $600.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $721.57.

Read Our Latest Analysis on Axon Enterprise

Insider Activity at Axon Enterprise
In other news, CEO Patrick Smith sold 10,000 shares of Axon Enterprise stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $508.99, for a total value of $5,089,900.00. Following the completion of the sale, the chief executive officer directly owned 3,118,012 shares of the company’s stock, valued at approximately $1,587,036,927.88. The trade was a 0.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Isaiah Fields sold 1,017 shares of the business’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $480.45, for a total transaction of $488,617.65. Following the sale, the insider owned 56,264 shares in the company, valued at $27,032,038.80. This trade represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 47,397 shares of company stock worth $26,722,984. Company insiders own 4.20% of the company’s stock.

Axon Enterprise Company Profile
(Free Report)

Axon Enterprise, Inc develops technology and connected systems for public safety and law enforcement agencies. Its product portfolio includes TASER conducted energy weapons, body-worn cameras, in-car cameras and other recording devices designed to support safer interactions, improve accountability and document incidents.

The company also provides cloud-based software for managing digital evidence, reports, records and agency operations. Its Axon platform connects hardware with services such as evidence management, real-time operations, computer-aided dispatch and other workflow tools, enabling agencies to store, organize and share information across their organizations.

Founded in 1993 as AIR TASER by Rick Smith and Tom Smith, the company later operated as TASER International before adopting the name Axon Enterprise in 2017.

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Key Takeaways Axon's adjusted EBITDA margin rose 110 basis points to 26.8% in Q2 2026 despite rising operating expenses.AXON's revenues surged 35.3% to $904.4 million, fueled by strong product demand and software adoption.Axon targets a 28% adjusted EBITDA margin by 2028, supported by annual revenues of $6 billion.
Axon Enterprise, Inc. (AXON - Free Report) continues to face escalating operating costs. In the second quarter of 2026, its cost of sales rose 35.2% year over year to $357.9 million, while selling, general and administrative expenses increased 20.1% to $291 million. Research and development expenses also climbed 28.4% to $209 million.

Despite these cost pressures, Axon's adjusted EBITDA margin improved 110 basis points year over year to 26.8%, supported by robust revenue growth and global tariff refunds. In the second quarter, its total revenues jumped 35.3% to $904.4 million, surpassing the Zacks Consensus Estimate of $868.4 million. Strong demand for Dedrone, TASER 10 and Axon Body 4 products, along with increased adoption of software solutions, fueled the growth.

Axon is witnessing growing demand beyond U.S. state and local markets, with international bookings nearly tripling year over year in the second quarter. The company also secured major TASER 10 contracts across the Middle East and Europe.

Axon’s emphasis on cost discipline, sales growth and operational efficiency is expected to support margin expansion in the quarters ahead. For 2026, the company projects an adjusted EBITDA margin of approximately 25.5%, largely unchanged from the prior year. Moving ahead, Axon aims to achieve an adjusted EBITDA margin of about 28% by 2028, backed by annual revenues of $6 billion.

Peer’s Margin performanceAmong its major peers, Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is facing cost pressure. In the second quarter of 2026, its cost of product sales increased 33.2% year over year, while its SG&A expenses rose 35.5%. Nevertheless, Kratos Defense’s gross profit margin expanded 80 bps to 21.8% in the quarter. Kratos Defense’s higher margins were driven by 30.5% revenue growth generated during the quarter.

Teledyne Technologies Incorporated’s (TDY - Free Report) cost of sales rose 6.4% year over year in second-quarter 2026. The company’s SG&A expenses also increased 12.8% year over year. Despite the rise in costs, Teledyne Technologies’ adjusted operating margin increased 120 basis points to 23.4% in the quarter. The year-over-year increase was supported by Teledyne’s 9.8% revenue growth.

AXON’s Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research

Shares of Axon have gained 8.8% in the past six months against the industry’s decline of 16.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 42.01X, above the industry’s average of 31.63X. Axon carries a Value Score of F.

Image Source: Zacks Investment Research

Terra Nova Asset Management LLC decreased its holdings in Axon Enterprise, Inc (NASDAQ:AXON – Free Report) by 50.9% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,650 shares of the biotechnology company’s stock after selling 1,710 shares during the quarter. Terra Nova Asset Management LLC’s holdings in Axon Enterprise were worth $697,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently bought and sold shares of the business. NorthCrest Asset Manangement LLC grew its position in shares of Axon Enterprise by 16,798.6% during the 3rd quarter. NorthCrest Asset Manangement LLC now owns 501,720 shares of the biotechnology company’s stock worth $211,987,000 after purchasing an additional 498,751 shares in the last quarter. Avior Wealth Management LLC increased its holdings in shares of Axon Enterprise by 1,837.4% during the third quarter. Avior Wealth Management LLC now owns 34,873 shares of the biotechnology company’s stock worth $14,735,000 after purchasing an additional 33,073 shares during the period. Armstrong Advisory Group Inc. raised its position in shares of Axon Enterprise by 4,439.6% in the third quarter. Armstrong Advisory Group Inc. now owns 34,819 shares of the biotechnology company’s stock valued at $14,712,000 after buying an additional 34,052 shares in the last quarter. Marquette Asset Management LLC raised its position in shares of Axon Enterprise by 227,700.0% in the third quarter. Marquette Asset Management LLC now owns 2,278 shares of the biotechnology company’s stock valued at $963,000 after buying an additional 2,277 shares in the last quarter. Finally, Castle Rock Wealth Management LLC raised its position in shares of Axon Enterprise by 949.0% in the third quarter. Castle Rock Wealth Management LLC now owns 6,955 shares of the biotechnology company’s stock valued at $2,939,000 after buying an additional 6,292 shares in the last quarter. Institutional investors own 79.08% of the company’s stock.

Axon Enterprise Trading Down 2.0%
Shares of Axon Enterprise stock opened at $414.43 on Tuesday. The company has a market capitalization of $33.67 billion, a price-to-earnings ratio of 171.96, a PEG ratio of 7.96 and a beta of 1.44. The company has a quick ratio of 1.80, a current ratio of 2.15 and a debt-to-equity ratio of 0.47. Axon Enterprise, Inc has a 12-month low of $339.01 and a 12-month high of $764.02. The firm’s 50-day moving average price is $515.21 and its two-hundred day moving average price is $475.74.

Axon Enterprise (NASDAQ:AXON – Get Free Report) last released its earnings results on Wednesday, August 5th. The biotechnology company reported $1.88 EPS for the quarter, beating the consensus estimate of $1.84 by $0.04. The firm had revenue of $904.39 million for the quarter, compared to analyst estimates of $876.42 million. Axon Enterprise had a net margin of 6.19% and a return on equity of 2.84%. The business’s quarterly revenue was up 35.3% compared to the same quarter last year. During the same period last year, the firm earned $2.12 EPS. On average, analysts forecast that Axon Enterprise, Inc will post 2.12 earnings per share for the current fiscal year.
Insider Activity
In related news, CEO Patrick Smith sold 10,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $508.99, for a total transaction of $5,089,900.00. Following the sale, the chief executive officer owned 3,118,012 shares in the company, valued at approximately $1,587,036,927.88. This trade represents a 0.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeffrey Kunins sold 9,605 shares of Axon Enterprise stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $626.70, for a total transaction of $6,019,453.50. Following the completion of the transaction, the insider directly owned 97,761 shares in the company, valued at $61,266,818.70. This trade represents a 8.95% 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. Over the last quarter, insiders have sold 47,397 shares of company stock worth $26,722,984. Insiders own 4.20% of the company’s stock.

Wall Street Analyst Weigh In
AXON has been the subject of several recent research reports. UBS Group boosted their price target on Axon Enterprise from $440.00 to $600.00 and gave the company a “neutral” rating in a research note on Thursday, August 6th. Barclays increased their price target on Axon Enterprise from $523.00 to $688.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Morgan Stanley raised their price objective on Axon Enterprise from $600.00 to $640.00 and gave the stock an “overweight” rating in a research note on Thursday, August 6th. Argus raised their price objective on Axon Enterprise from $460.00 to $600.00 and gave the stock a “buy” rating in a research note on Thursday, September 3rd. Finally, Piper Sandler lifted their price objective on Axon Enterprise from $724.00 to $732.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $721.57.

View Our Latest Analysis on Axon Enterprise

(Free Report)

Axon Enterprise, Inc develops technology and connected systems for public safety and law enforcement agencies. Its product portfolio includes TASER conducted energy weapons, body-worn cameras, in-car cameras and other recording devices designed to support safer interactions, improve accountability and document incidents.

The company also provides cloud-based software for managing digital evidence, reports, records and agency operations. Its Axon platform connects hardware with services such as evidence management, real-time operations, computer-aided dispatch and other workflow tools, enabling agencies to store, organize and share information across their organizations.

Founded in 1993 as AIR TASER by Rick Smith and Tom Smith, the company later operated as TASER International before adopting the name Axon Enterprise in 2017.

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Choosing between a high-growth technology provider and a steady consumer products company involves balancing innovation against brand resilience. Investors are currently weighing Axon Enterprise Inc (AXON +1.34%) against Turning Point Brands Inc (TPB +0.60%) to see which fits better.

Axon Enterprise provides mission-critical hardware and software for law enforcement, while Turning Point Brands manages a portfolio of alternative tobacco products. Though they operate in vastly different sectors, both companies rely on strong brand loyalty and recurring revenue to drive their long-term growth strategies.

The case for Axon EnterpriseAxon Enterprise provides an integrated platform of hardware and cloud software designed for public and private safety workflows. The company is best known for its Taser devices and body cameras, but its most significant growth engine is now the Axon Cloud, which stores and manages digital evidence. According to its latest annual report for 2025, no single customer accounted for more than 10% of total net sales, reducing the risk often associated with large government contracts.

In FY 2025, revenue reached about $2.8 billion, representing a significant increase of approximately 34% over the prior year. This growth was supported by the continued adoption of its cloud-based services and expanded hardware deployments across local and federal agencies. The company reported a net income of approximately $125 million for the period, resulting in a net margin of roughly 4.5% as it continues to invest heavily in its research and development efforts.

As of its December 2025 balance sheet, its current ratio, which measures the ability to pay short-term liabilities with short-term assets, stands at nearly 2.5x. The debt-to-equity ratio, which compares total debt to shareholder equity, is approximately 0.6x. Free cash flow for the year was about $75.1 million. Free cash flow is calculated as cash from operations minus capital expenditures. Note that stock-based compensation represented roughly 300% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.

Turning Point Brands is a branded consumer products company that markets and distributes alternative smoking accessories and consumables, including its well-known Zig-Zag and Stoker's brands. The company operates in a stable niche among consumer staples stocks, shipping to nearly 900 distributors and 600 secondary wholesalers across North America. Its products are currently available in approximately 220,000 retail locations, ranging from convenience stores to specialized dispensaries.

In FY 2025, revenue reached approximately $463.1 million, reflecting growth of more than 28% compared to the previous year. This performance was driven by strong demand for its rolling papers and chewing tobacco products. The company achieved net income of about $58.2 million for the fiscal year, with a net margin of approximately 13%. This reflects a consistent ability to generate profits from its established brand portfolio despite the mature nature of the broader industry.

As of its December 2025 balance sheet, the company maintains a robust current ratio of nearly 5.6x, indicating a strong liquidity position for meeting short-term obligations. Its debt-to-equity ratio, which measures total debt relative to shareholders' equity, is approximately 0.9x. Free cash flow for the fiscal year was roughly $43.8 million, representing the cash remaining after subtracting capital expenditures from operating cash flow. These steady cash flows support the company's ongoing operations and marketing initiatives.

Risk profile comparisonAxon Enterprise faces several risks, including a high revenue concentration within U.S. law enforcement agencies and a heavy dependence on its Taser product line. The company is subject to significant product liability and wrongful death litigation risks stemming from the use of its products in high-stakes environments. Furthermore, its expansion into AI and cloud services introduces cybersecurity vulnerabilities and regulatory uncertainty. Axon also competes against established players like Motorola Solutions (MSI -0.66%) and Tyler Technologies (TYL -0.48%), as well as specialized firms such as Wrap Technologies (WRAP -3.40%) and Byrna Technologies (BYRN -4.44%).

Turning Point Brands deals with the continued volume decline in the overall U.S. tobacco market as consumers move away from combustible products. The company relies on a limited number of key suppliers, particularly for its cigarette papers and chewing tobacco, which creates supply chain vulnerability. Increasing FDA regulatory oversight, including premarket authorization requirements, remains a constant challenge for its nicotine-based products. Turning Point Brands must also navigate a competitive landscape that includes industry giants like Philip Morris International (PM +0.34%), British American Tobacco (BTI +0.13%), and Imperial Brands (OTC:IMBBF).

Valuation comparisonTurning Point Brands offers a significantly lower valuation based on its revenue, while Axon Enterprise carries a much higher premium due to its rapid growth and software-driven business model.

MetricAxon EnterpriseTurning Point BrandsForward P/E62.1x55.9xP/S ratio13.9x3.0xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?Turning Point Brands faces some headwinds in its main market, the U.S., due to declining smoking rates. Smoking as a habit is declining globally and has hit its lowest level in the U.S., at under 10% of all adults, down from a peak of about 46% in the mid-1960s. That means its rolling paper products could see declines.

But fortunately, most of its business is smoking alternative products. That means Turning Points Brands should see sales rise 13% this year to about $525 million, with net income of $58 million. That's a 45% jump in profits. Nicotine pouch sales in the U.S. as a category grew 500% last year and are expected to remain strong this year. Still, there is a risk around pouches being hit by more regulations, and the fact that oral tobacco in the past was deeply criticized for contributing to oral cancers.

Axon Enterprise, meanwhile, has a fine outlook for growth as law enforcement is increasingly equipped with Tasers and the public is becoming increasingly demanding that agents wear body cameras.

Expansion into Europe and Canada should also help, as should a focus on producing personal consumer-protection devices. In particular, all the data and video created by Axon customers have to be managed, and the company is seeing strong demand for its AI-based management systems from customers who find many of the services create efficiencies within their operations.

In its fiscal 2026, sales are seen growing well, up about a third to $3.7 billion, with net income of $275 million and free cash flow of $447 million, well over 2025's levels.

Both companies' shares have had a difficult 2026, each declining by more than 20% year to date. Axon Enterprise comes at a premium compared to Turning Point Brands when comparing their P/S and forward P/E ratios. Still, the overall market for security products continues to expand while tobacco-related products are in decline in TPB's major markets. For long-term investors, that makes Axon Enterprise the better turnaround candidate.

First Heartland Consultants Inc. grew its stake in shares of Axon Enterprise, Inc (NASDAQ:AXON – Free Report) by 2,538.0% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 24,586 shares of the biotechnology company’s stock after purchasing an additional 23,654 shares during the quarter. First Heartland Consultants Inc.’s holdings in Axon Enterprise were worth $10,388,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. GAMMA Investing LLC raised its holdings in shares of Axon Enterprise by 6,472.9% during the 3rd quarter. GAMMA Investing LLC now owns 110,359 shares of the biotechnology company’s stock valued at $46,629,000 after buying an additional 108,680 shares during the period. CoreCap Advisors LLC boosted its holdings in Axon Enterprise by 1,803.5% in the 3rd quarter. CoreCap Advisors LLC now owns 27,049 shares of the biotechnology company’s stock worth $11,429,000 after acquiring an additional 25,628 shares during the period. Atwood & Palmer Inc. boosted its holdings in Axon Enterprise by 183.3% in the 3rd quarter. Atwood & Palmer Inc. now owns 1,473 shares of the biotechnology company’s stock worth $622,000 after acquiring an additional 953 shares during the period. Everhart Financial Group Inc. grew its position in Axon Enterprise by 4,709.9% in the third quarter. Everhart Financial Group Inc. now owns 22,270 shares of the biotechnology company’s stock valued at $9,410,000 after acquiring an additional 21,807 shares in the last quarter. Finally, Avidian Wealth Enterprises LLC grew its position in Axon Enterprise by 3,661.6% in the third quarter. Avidian Wealth Enterprises LLC now owns 62,818 shares of the biotechnology company’s stock valued at $26,542,000 after acquiring an additional 61,148 shares in the last quarter. Hedge funds and other institutional investors own 79.08% of the company’s stock.

Insider Activity at Axon Enterprise In other news, President Joshua Isner sold 16,775 shares of the company’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $574.43, for a total value of $9,636,063.25. Following the sale, the president owned 296,974 shares in the company, valued at approximately $170,590,774.82. This represents a 5.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeffrey Kunins sold 9,605 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $626.70, for a total transaction of $6,019,453.50. Following the transaction, the insider directly owned 97,761 shares in the company, valued at $61,266,818.70. The trade was a 8.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 47,397 shares of company stock worth $26,722,984 over the last quarter. Company insiders own 4.20% of the company’s stock.

Axon Enterprise Stock Performance Axon Enterprise stock opened at $417.31 on Friday. Axon Enterprise, Inc has a 52 week low of $339.01 and a 52 week high of $764.02. The company has a current ratio of 2.15, a quick ratio of 1.80 and a debt-to-equity ratio of 0.47. The stock has a market cap of $33.90 billion, a P/E ratio of 173.16, a price-to-earnings-growth ratio of 7.64 and a beta of 1.44. The stock has a 50 day moving average of $520.54 and a 200-day moving average of $476.63. Axon Enterprise (NASDAQ:AXON – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.84 by $0.04. The business had revenue of $904.39 million during the quarter, compared to analyst estimates of $876.42 million. Axon Enterprise had a net margin of 6.19% and a return on equity of 2.84%. The business’s revenue was up 35.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.12 earnings per share. On average, analysts expect that Axon Enterprise, Inc will post 2.12 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth AXON has been the topic of a number of recent research reports. TD Cowen reissued a “buy” rating on shares of Axon Enterprise in a research report on Wednesday, July 22nd. Citizens Jmp reaffirmed a “market outperform” rating and set a $700.00 price target on shares of Axon Enterprise in a report on Thursday, June 25th. UBS Group lifted their price target on shares of Axon Enterprise from $440.00 to $600.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Zacks Research upgraded shares of Axon Enterprise from a “hold” rating to a “strong-buy” rating in a report on Monday. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of Axon Enterprise in a research report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $721.57.

Check Out Our Latest Report on AXON

Axon Enterprise Company Profile (Free Report)

Axon Enterprise, Inc develops technology and connected systems for public safety and law enforcement agencies. Its product portfolio includes TASER conducted energy weapons, body-worn cameras, in-car cameras and other recording devices designed to support safer interactions, improve accountability and document incidents.

The company also provides cloud-based software for managing digital evidence, reports, records and agency operations. Its Axon platform connects hardware with services such as evidence management, real-time operations, computer-aided dispatch and other workflow tools, enabling agencies to store, organize and share information across their organizations.

Founded in 1993 as AIR TASER by Rick Smith and Tom Smith, the company later operated as TASER International before adopting the name Axon Enterprise in 2017.

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Marrero Armor LLC Secures First International Order, Expanding U.S.-Made Ballistic Protection WorldwidePR Newswire

SCOTTSDALE, Ariz., Oct. 8, 2026

, /PRNewswire/ -- Marrero Armor LLC, a Scottsdale-based manufacturer of lightweight, NIJ-qualified tactical ballistic protection, announced the fulfillment of its first major international order valued at more than $2.99 million USD. Founded in 2020, the company delivers high-performance, affordable ballistic protection to front-line defenders.

The order includes more than 4,000 multi-hit, NIJ-qualified armor plates for an international law enforcement agency, reflecting growing confidence in Marrero Armor's U.S.-designed and U.S.-manufactured equipment.

"This international order validates what we've been telling our domestic customer base from day one: Our American-made armor doesn't have to cost more to perform better and be lighter," said Hans Marrero, CEO and Co-Founder. "I've trained more than 75,000 law enforcement and military personnel in over 100 countries, so I understand firsthand the threats these warriors face."

"We built Marrero Armor to eliminate the gap between performance and price," said Brian Beckwith, President and Co-Founder. "This order demonstrates that agencies around the world recognize the value of that approach. We're proud to be exporting a product that was designed, tested, and manufactured right here in Scottsdale."

About Marrero Armor LLC

Founded in 2020 by Hans Marrero, CEO, and Brian Beckwith, President, Marrero Armor LLC designs, tests, and manufactures tactical ballistic products delivering lightweight, reliable, and affordable protection to front-line defenders. Both founders are current or formerly affiliated with AXON Enterprises (NASDAQ: AXON), and the company holds a co-owned patent with AXON integrating non-lethal technology on ballistic shields.

Headquartered in Scottsdale, Arizona, the company specializes in lightweight, multi-hit hard armor plates and ballistic shields meeting or exceeding NIJ Standards 0101.07 and 0108.01, respectively. It also offers soft armor, vests, tactical shield covers, carriers, and a patent-pending Picatinny® rail system for mounting accessories such as lights and cameras on ballistic shields.

All hard armor plates carry a 10-year warranty, and the company replaces armor shot in the line of duty at no cost to the agency or officer. Marrero Armor operates without outside financing, growing organically through product performance and customer relationships.

Media Contact

Marrero Armor LLC
15550 North 84th Street, Suite 103, Scottsdale, Arizona 85260
Email: [email protected]
Web: www.marreroarmor.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/marrero-armor-llc-secures-first-international-order-expanding-us-made-ballistic-protection-worldwide-302902741.html

SOURCE Marrero Armor LLC

Reports show 40% reduction in physical assaults on staff after adding body-worn camera technology

, /PRNewswire/ -- Axon (Nasdaq: AXON), the global public safety technology leader, today announced new Corrections deployments across four states, providing advanced solutions to help keep both staff and incarcerated individuals safe.

Axon Corrections integrates real-time tools across facilities, enhancing operational efficiency and visibility for staff. Agencies implementing these solutions have reported measurable improvements in safety, including reductions in staff assaults and use of force.

The New York State Department of Corrections and Community Supervision (NYS DOCCS) has deployed Axon's connected ecosystem, including Body 4 cameras, Fusus, Fleet in-car video, Dedrone and Skydio drones, across its 42 facilities and 15,000 officers, and is now testing additional AI tools. The Ohio Department of Rehabilitation and Correction (ODRC), the first rehabilitation facility in the nation to adopt body-worn cameras, has added Axon TASER devices to reduce officer assaults and is piloting AI tools to support productivity and decision-making. The Maryland Department of Public Safety and Correctional Services (Maryland DPSCS) is adopting Axon Body 4 cameras across all 17 facilities following a successful trial period that saw staff assaults drop 40% in August, compared to the same month last year.  The North Carolina Department of Adult Correction (NCDAC) has expanded their connected technology platform to promote safety and efficiency, including additional TASER 10 energy weapons, Axon Body 4 cameras, Fusus real-time operations solution, Dedrone airspace security systems, and Skydio drones. The first correctional institution to deploy TASER 10 in 2022, NCDAC's Community Supervision department reported an 87% force avoidance rate, where 46 out of 53 incidents were resolved by show of force alone. "Body-worn cameras serve as an accountability tool for us and add additional protections for the incarcerated individuals in our custody," said David Greene, Deputy Secretary of Operations, Maryland DPSCS. "We're proud to join other leading correctional institutions across the country in implementing this technology, and are already seeing positive results."

For more information: Axon Corrections: Safer Prison Environments 

About Axon
Axon (Nasdaq: AXON) is the global leader in public safety technology, relentlessly innovating to protect more lives in more places. Founder-led since 1993, Axon began with a mission to reimagine conflict in law enforcement and has grown into a global company serving everyone who takes on the responsibility of public safety, enterprise security, and national security — from first responders and governments to companies, frontline workers, and communities. Our trusted network connects TASER energy devices, cameras and sensors including body, fixed and in-car cameras, drones and robotics, digital evidence and records management, real-time operations, immersive training, productivity tools, and AI-driven capabilities and insights. Designed to work seamlessly together, these solutions create a connected picture of safety that helps protect people and places with greater speed, clarity, and accountability.

Non-Axon trademarks are the property of their respective owners. Axon, TASER and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.

Responsible Innovation at Axon
At Axon, innovation is inseparable from responsibility. We believe technology must serve humanity, and every product we build is designed to solve the real challenges our customers face in protecting their communities. That means developing solutions in close collaboration with the people who use them and grounding our work in transparency, fairness, accountability, and privacy. Our independent Ethics & Equity Advisory Council provides ongoing input and feedback that helps shape our approach, ensuring we remain thoughtful and aligned with community needs as technology evolves. Learn more at axon.com/responsibility.

Please visit https://investor.axon.com and https://www.axon.com/newsroom for more information.

Media Contact:
Kate MacKinnon
Vice President, Communications
[email protected]

SOURCE Axon

The Nasdaq-100 includes the 100 largest non-financial companies in the Nasdaq Composite (^IXIC +1.05%). It is widely regarded as a benchmark for growth stocks because it is heavily weighted toward the technology sector. While the broad-based S&P 500 (^GSPC +0.66%) added 323% during the last decade, the Nasdaq-100 added 593%.

Listed below are the two best Nasdaq-100 stocks to buy today based on the upside implied by Wall Street's median 12-month target prices as of Oct. 4:

AppLovin (APP +5.13%) has a median target price of $500 per share. That implies 86% upside from its current share price of $268.Axon Enterprise (AXON -0.37%) has a median target price of $700 per share. That implies 69% upside from its current share price of $413.Here's what investors should know about these stocks.

Image source: Getty Images.

AppLovin: 86% upside implied by Wall Street's median target priceAppLovin is an ad tech company that initially focused on mobile gaming, with products that helped publishers market and monetize applications. But last year, the company expanded into e-commerce advertising with a self-service platform. AppLovin recently started adding generative AI creative tools, and it plans to automate the whole advertising process in the future, from campaign creation to optimization.

AppLovin has a key competitive advantage in its Axon recommendation engine. The underlying machine learning models are trained to optimize ad buying in real time based on which users are predicted to take valuable actions. The models become more effective with each new data point, creating a network effect that leads to better recommendations over time.

AppLovin reported decent financial results in the second quarter despite narrowly missing top-line estimates. Revenue increased 53% to $1.9 billion, and GAAP net income increased 57% to $3.76 per diluted share. At the midpoint, management expects revenue to total $2.07 billion in the third quarter, implying 47% growth.

Wall Street estimates AppLovin's earnings will grow at 35% annually through 2027. That makes the current valuation of 22 times earnings look cheap, and it explains why so many analysts see substantial upside in the stock. Now is a good time to buy a small stake in this ad tech company.

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Axon Enterprise: 69% upside implied by Wall Street's median target priceAxon develops public safety products for law enforcement, enterprises, and government agencies. Its hardware portfolio includes conducted energy weapons (Tasers), body-worn cameras, and in-car cameras. Its software portfolio includes products for digital evidence management, records management, emergency communications, and real-time operations.

Axon is the market leader in Tasers, body-worn cameras, and digital evidence management software, and the company is supercharging its products with AI features that improve law enforcement productivity and efficiency. For instance, Draft One uses body-worn camera video and generative AI to draft reports. And Axon Fusus uses AI to process video and alert human operators to situations like physical fights and vehicle crashes.

Axon reported strong second-quarter financial results that handily beat estimates on the top and bottom lines. Revenue increased 35% to $904 billion, driven strong growth across connected devices and software products, including newer solutions for dispatch, real-time operations, and AI. Meanwhile, non-GAAP EBITDA increased 41% to $242 million. The company also raised its full-year guidance, which now implies 33% revenue growth in 2026.

Wall Street expects Axon's adjusted earnings to grow at 35% annually through 2027. That makes the current valuation of 61 times adjusted earnings look rich, but not outrageously expensive. Patient investors with a time horizon of at least five years can buy a few shares today, but I would keep the position relatively small unless the stock drops 20% or so. If that happens, the valuation would be much more attractive.

In the latest trading session, Axon Enterprise (AXON - Free Report) closed at $413.35, marking a -2.1% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.49%, while the tech-heavy Nasdaq appreciated by 1.19%.

Heading into today, shares of the maker of stun guns and body cameras had lost 21.54% over the past month, lagging the Aerospace sector's loss of 6.63% and the S&P 500's gain of 0.55%.

The investment community will be closely monitoring the performance of Axon Enterprise in its forthcoming earnings report. In that report, analysts expect Axon Enterprise to post earnings of $1.94 per share. This would mark year-over-year growth of 65.81%. Simultaneously, our latest consensus estimate expects the revenue to be $935.35 million, showing a 31.62% escalation compared to the year-ago quarter.

AXON's full-year Zacks Consensus Estimates are calling for earnings of $7.88 per share and revenue of $3.68 billion. These results would represent year-over-year changes of +15.04% and +32.42%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Axon Enterprise. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.67% upward. Right now, Axon Enterprise possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Axon Enterprise is currently exchanging hands at a Forward P/E ratio of 53.56. This signifies a premium in comparison to the average Forward P/E of 33.53 for its industry.

One should further note that AXON currently holds a PEG ratio of 2.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.03 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 39, positioning it in the top 16% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Axon Enterprise (AXON - Free Report) ended the recent trading session at $430.11, demonstrating a -3.35% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.51%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.48%.

Coming into today, shares of the maker of stun guns and body cameras had lost 27.19% in the past month. In that same time, the Aerospace sector lost 8.01%, while the S&P 500 gained 0.74%.

The upcoming earnings release of Axon Enterprise will be of great interest to investors. The company is predicted to post an EPS of $1.94, indicating a 65.81% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $935.35 million, indicating a 31.62% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.88 per share and revenue of $3.68 billion. These totals would mark changes of +15.04% and +32.42%, respectively, from last year.

Any recent changes to analyst estimates for Axon Enterprise should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.67% upward. Axon Enterprise currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Axon Enterprise is holding a Forward P/E ratio of 56.45. This valuation marks a premium compared to its industry average Forward P/E of 34.44.

It's also important to note that AXON currently trades at a PEG ratio of 2.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.17 at the close of the market yesterday.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 51, positioning it in the top 21% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AXON in the coming trading sessions, be sure to utilize Zacks.com.

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.

Should You Consider General Dynamics?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. General Dynamics (GD - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $4.18 a share 30 days away from its upcoming earnings release on October 23, 2026.

General Dynamics' Earnings ESP sits at +0.86%, which, as explained above, is calculated by taking the percentage difference between the $4.18 Most Accurate Estimate and the Zacks Consensus Estimate of $4.14. GD is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

GD is one of just a large database of Aerospace stocks with positive ESPs. Another solid-looking stock is Axon Enterprise (AXON - Free Report) .

Slated to report earnings on November 3, 2026, Axon Enterprise holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $1.97 a share 41 days from its next quarterly update.

Axon Enterprise's Earnings ESP figure currently stands at +1.40% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.94.

GD and AXON's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

SummaryAxon offers compelling risk-reward after a misunderstood 0% $1B convertible note, with minimal dilution risk and strategic capital flexibility.Q2 FY26 saw robust 35% YoY revenue growth, strong software momentum, and raised 2024 revenue guidance to 32-34%, despite near-term margin noise.Dilution from the convertible is capped unless AXON exceeds $1,049.94/share by 2031; capped call structure and cash settlement options further protect shareholders.AXON trades at 32x FY28 EPS with 27% projected annual EPS growth, supporting a bullish outlook and significant upside potential.Looking for a portfolio of ideas like this one? Members of The REIT Forum get exclusive access to our subscriber-only portfolios. Learn More » ekinyalgin/iStock via Getty Images

Introduction & Investment Thesis Axon (AXON) stock has been under some pressure lately. After a somewhat noisy Q2 FY26 earnings print, which completely overshadowed the underlying growth story driven by the AI Era

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AXON either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Axon Enterprise (AXON - Free Report) closed the most recent trading day at $453.50, moving -3.19% from the previous trading session. This change lagged the S&P 500's 1.14% gain on the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.69%.

Prior to today's trading, shares of the maker of stun guns and body cameras had lost 27.46% lagged the Aerospace sector's loss of 14.23% and the S&P 500's loss of 2.85%.

The upcoming earnings release of Axon Enterprise will be of great interest to investors. On that day, Axon Enterprise is projected to report earnings of $1.94 per share, which would represent year-over-year growth of 65.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $935.35 million, up 31.62% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.88 per share and revenue of $3.68 billion, which would represent changes of +15.04% and +32.42%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Axon Enterprise. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 3.67% rise in the Zacks Consensus EPS estimate. At present, Axon Enterprise boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Axon Enterprise has a Forward P/E ratio of 56.08 right now. This expresses a premium compared to the average Forward P/E of 33.63 of its industry.

Investors should also note that AXON has a PEG ratio of 2.24 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Aerospace - Defense Equipment industry currently had an average PEG ratio of 2.2 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Axon (AXON) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock continue moving higher in the near term.

Axon Enterprise (AXON - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this maker of stun guns and body cameras have returned -28.7%, compared to the Zacks S&P 500 composite's -2.4% change. During this period, the Zacks Aerospace - Defense Equipment industry, which Axon falls in, has lost 17%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Axon is expected to post earnings of $1.94 per share for the current quarter, representing a year-over-year change of +65.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.5%.

The consensus earnings estimate of $7.88 for the current fiscal year indicates a year-over-year change of +15%. This estimate has changed +3.7% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.41 indicates a change of +32.1% from what Axon is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Axon is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Axon, the consensus sales estimate for the current quarter of $935.35 million indicates a year-over-year change of +31.6%. For the current and next fiscal years, $3.68 billion and $4.7 billion estimates indicate +32.4% and +27.7% changes, respectively.

Last Reported Results and Surprise HistoryAxon reported revenues of $904.39 million in the last reported quarter, representing a year-over-year change of +35.3%. EPS of $1.88 for the same period compares with $2.12 a year ago.

Compared to the Zacks Consensus Estimate of $868.34 million, the reported revenues represent a surprise of +4.15%. The EPS surprise was -0.53%.

Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Axon is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Axon. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Axon Enterprise, Inc (NASDAQ:AXON – Get Free Report) insider Isaiah Fields sold 1,017 shares of the company’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $480.45, for a total value of $488,617.65. Following the sale, the insider owned 56,264 shares in the company, valued at approximately $27,032,038.80. This trade represents a 1.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Axon Enterprise Stock Performance Shares of AXON opened at $442.08 on Wednesday. The stock has a 50-day simple moving average of $555.06 and a 200-day simple moving average of $488.60. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.80 and a current ratio of 2.15. The stock has a market capitalization of $35.91 billion, a PE ratio of 183.44, a PEG ratio of 9.23 and a beta of 1.40. Axon Enterprise, Inc has a 1 year low of $339.01 and a 1 year high of $792.16.

Axon Enterprise (NASDAQ:AXON – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The biotechnology company reported $1.88 EPS for the quarter, topping analysts’ consensus estimates of $1.84 by $0.04. Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%.The business had revenue of $904.39 million during the quarter, compared to the consensus estimate of $876.42 million. During the same period in the previous 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. On average, analysts predict that Axon Enterprise, Inc will post 2.12 earnings per share for the current fiscal year.

Trending Headlines about Axon Enterprise Here are the key news stories impacting Axon Enterprise this week: Positive Sentiment: The proposed zero-coupon notes would provide Axon with additional liquidity to fund acquisitions, product development and other corporate purposes. The company also amended its existing credit agreement, potentially giving it greater financial flexibility. Axon Announces Proposed Offering of $1.0 Billion of 0% Convertible Senior Notes Neutral Sentiment: Axon’s latest quarterly results showed revenue growth of 35.3% year over year to approximately $904 million, while adjusted earnings exceeded analysts’ expectations. Analysts continue to maintain a broadly favorable view, with a consensus rating of “Moderate Buy,” although the stock’s growth expectations remain demanding. Axon Enterprise Dips More Than Broader Market Negative Sentiment: Investors reacted negatively to the debt offering because convertible notes can result in future share dilution if converted into equity. The financing also raised concerns that Axon needs to “reload” its cash position after its second-quarter results, while the company’s elevated valuation—above 180 times earnings—leaves little room for disappointment. Why Axon Enterprise Stock Was Tumbling Negative Sentiment: A reported insider sale of 1,017 shares worth approximately $489,000 added a minor negative signal, although the transaction was made under a pre-arranged Rule 10b5-1 trading plan and represented only a 1.78% reduction in the insider’s holdings. Axon Insider Selling Institutional Trading of Axon Enterprise Several institutional investors have recently modified their holdings of the stock. Pure Financial Advisors LLC raised its stake in shares of Axon Enterprise by 6.7% during the 4th quarter. Pure Financial Advisors LLC now owns 364 shares of the biotechnology company’s stock worth $207,000 after purchasing an additional 23 shares in the last quarter. Keel Point LLC grew its stake in shares of Axon Enterprise by 4.4% in the first quarter. Keel Point LLC now owns 599 shares of the biotechnology company’s stock valued at $254,000 after buying an additional 25 shares in the last quarter. Bridgewater Advisors Inc. grew its stake in shares of Axon Enterprise by 4.4% in the second quarter. Bridgewater Advisors Inc. now owns 616 shares of the biotechnology company’s stock valued at $352,000 after buying an additional 26 shares in the last quarter. Roman Butler Fullerton & Co. increased its holdings in Axon Enterprise by 2.4% during the first quarter. Roman Butler Fullerton & Co. now owns 1,278 shares of the biotechnology company’s stock worth $500,000 after buying an additional 30 shares during the last quarter. Finally, 44 Wealth Management LLC increased its holdings in Axon Enterprise by 6.0% during the first quarter. 44 Wealth Management LLC now owns 530 shares of the biotechnology company’s stock worth $225,000 after buying an additional 30 shares during the last quarter. Hedge funds and other institutional investors own 79.08% of the company’s stock.

Wall Street Analysts Forecast Growth A number of equities research analysts have commented on AXON shares. Morgan Stanley increased their price objective on shares of Axon Enterprise from $600.00 to $640.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Citizens Jmp reiterated a “market outperform” rating and set a $700.00 target price on shares of Axon Enterprise in a research note on Thursday, June 25th. Barclays increased their target price on Axon Enterprise from $523.00 to $688.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Needham & Company LLC restated a “buy” rating on shares of Axon Enterprise in a research note on Wednesday, September 2nd. Finally, Piper Sandler raised their price target on Axon Enterprise from $724.00 to $732.00 and gave the company an “overweight” rating in a research note on Thursday, August 6th. Fourteen analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $721.57.

Read Our Latest Research Report on Axon Enterprise

(Get Free Report)

Axon Enterprise, Inc develops technology and equipment for law enforcement, public safety and other government agencies. Its product portfolio includes TASER energy weapons, body-worn cameras, in-car cameras and related connected devices designed to support safer interactions, improve transparency and collect operational data.

The company also provides cloud-based software for managing digital evidence, conducting investigations, overseeing records and workflows, coordinating dispatch and supporting real-time public safety operations.

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, /PRNewswire/ -- Axon Enterprise, Inc. (Nasdaq: AXON) ("Axon") announced today that it has priced its offering of $1.0 billion aggregate principal amount of 0% convertible senior notes due 2031 (the "Notes"). Axon also granted the underwriters of the Notes an option to purchase for settlement within an 11-day period beginning on, and including, the first date on which the Notes are issued, up to an additional $150.0 million aggregate principal amount of Notes, solely to cover over-allotments, if any. The sale of the Notes to the underwriters is expected to settle on September 18, 2026, subject to customary closing conditions, and is expected to result in approximately $986.0 million in net proceeds to Axon (or approximately $1,134.3 million if the underwriters exercise their over-allotment option in full) after deducting the underwriters' discount and estimated offering expenses payable by Axon.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Citigroup Global Markets Inc. are acting as joint lead book-running managers for the offering. Citizens JMP Securities, LLC, Needham & Company, LLC, Piper Sandler & Co. and Baird are acting as co-managers for the offering.

Use of Proceeds

Axon intends to use $99.9 million of the net proceeds of the offering of the Notes (or approximately $114.9 million if the underwriters exercise their over-allotment option for the Notes in full) to pay the cost of the capped call transactions described below. Axon expects to use the remaining net proceeds for general corporate purposes, which may include, among other things, providing capital to support Axon's growth and to acquire or invest in product lines, products, services or technologies, including through acquisitions of, or investments in, other businesses.

Additional Details of the Notes

The Notes will mature on September 15, 2031, unless earlier converted, redeemed or repurchased. The Notes will be senior, unsecured obligations of Axon and will not bear regular interest, and the principal amount of the Notes will not accrete.

The Notes may be converted at an initial conversion rate of 1.5336 shares of Axon's common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $652.06 per share of Axon's common stock). Prior to the close of business on the business day immediately preceding June 15, 2031, the Notes will be convertible at the option of the noteholders only upon the satisfaction of specified conditions and during certain periods. On or after June 15, 2031 until the close of business on the second scheduled trading day immediately preceding the maturity date, the noteholders may convert all or any portion of their Notes regardless of these conditions. Upon conversion, Axon will pay or deliver, as the case may be, cash, shares of Axon's common stock or a combination of cash and shares of Axon's common stock, at Axon's election.

If Axon undergoes certain corporate events that constitute a "fundamental change," then, subject to certain conditions and limited exceptions, holders may require Axon to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date. In addition, subject to certain conditions, noteholders may require Axon to repurchase their Notes on March 20, 2031 at a repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid special interest, if any (a "holder repurchase option"). Axon may elect to satisfy all or a portion of its obligation with respect to the principal amount of the repurchase price for the holder repurchase option by issuing or delivering shares of Axon's common stock in certain circumstances, up to a specified maximum number of shares, with the remainder (if any) of the repurchase price payable in cash, subject to and in accordance with the terms and conditions set forth in the indenture governing the Notes.

Except in the case of a cleanup redemption (as defined below), on or after September 20, 2029, and before the 31st scheduled trading day immediately before the maturity date, Axon may redeem for cash all or any portion of the Notes (subject to certain limitations), at Axon's option, if the last reported sale price of Axon's common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which Axon provides notice of redemption, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date. Axon may also redeem for cash all, but not less than all, of the Notes at any time before the 31st scheduled trading day immediately before the maturity date if the principal amount of Notes outstanding at such time is less than 10% of the aggregate principal amount of the Notes initially issued under the indenture (including any additional Notes issued pursuant to the underwriters' over-allotment option) (a "cleanup redemption").

Capped Call Transactions

In connection with the pricing of the Notes, Axon has entered into privately negotiated capped call transactions with certain of the underwriters and/or their respective affiliates and other financial institutions (the "option counterparties"). The capped call transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, the number of shares of Axon's common stock initially underlying the Notes. If the underwriters exercise their over-allotment option, then Axon expects to enter into additional capped call transactions with the option counterparties. The capped call transactions are expected generally to reduce the potential dilution to Axon's common stock upon any conversion of the Notes and/or offset any potential cash payments Axon is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap. The cap price of the capped call transactions will initially be $1,049.94, which represents a premium of 137.5% over the last reported sale price of Axon's common stock of $442.08 per share on The NASDAQ Stock Market LLC on September 15, 2026, and is subject to certain adjustments under the terms of the capped call transactions. The cap price of the capped call transactions and the premium payable were determined at the time of pricing of the offering.

Axon has been advised that, in connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to enter into cash-settled over-the-counter derivative transactions with respect to Axon's common stock concurrently with, or shortly after, the pricing of the Notes and may unwind these cash-settled over-the-counter derivative transactions and purchase shares of Axon's common stock in open market transactions following the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of Axon's common stock or the Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Axon's common stock and/or purchasing or selling shares of Axon's common stock or other securities issued by Axon in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and (x) are likely to do so during any observation period related to a conversion of the Notes, following any redemption of Notes by Axon or following any repurchase of Notes by Axon in connection with any fundamental change or holder repurchase option and (y) are likely to do so following any other repurchase of Notes by Axon,  if Axon elects to unwind a corresponding portion of the capped call transactions in connection with such repurchase). This activity could also cause or avoid an increase or a decrease in the market price of Axon's common stock or the Notes, which could affect a noteholder's ability to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of the Notes or repurchase observation period related to an exercise of the holder repurchase option, it could affect the number of shares of Axon's common stock and value of the consideration that a noteholder will receive upon conversion or optional repurchase of the Notes.

In addition, if any such capped call transaction fails to become effective, whether or not the offering of the Notes is completed, the option counterparty party thereto may unwind its hedge positions with respect to Axon's common stock, which could adversely affect the value of Axon's common stock and, if the Notes have been issued, the value of the Notes.

About Axon

Axon (Nasdaq: AXON) is the global leader in public safety technology, relentlessly innovating to protect more lives in more places. Founder-led since 1993, Axon began with a mission to reimagine conflict in law enforcement and has grown into a global company serving everyone who takes on the responsibility of public safety, enterprise security, and national security — from first responders and governments to companies, frontline workers, and communities. Our trusted network connects TASER energy devices, cameras and sensors including body-worn, fixed and in-car cameras, drones and robotics, digital evidence and records management, real-time operations, immersive training, productivity tools, and AI-driven capabilities and insights. Designed to work seamlessly together, these solutions create a connected picture of safety that helps protect people and places with greater speed, clarity, and accountability.

Non-Axon trademarks are property of their respective owners.

Axon, Axon 911, Axon Assistant, AI Era Plan, Axon Body, Axon Body Mini, Axon Ecosystem, Axon Evidence, Axon Fusus, Axon Auto-Transcribe, Dedrone, TASER, TASER 10, the Filled Bolt within Circle Logo and the Delta Logo are trademarks of Axon Enterprise, Inc., some of which are registered in the United States and other countries. All rights reserved.

Notice to Investors; Forward-Looking Statements

The offering is being made pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (the "SEC"). The offering will be made only by means of a prospectus supplement relating to the offering and an accompanying prospectus. An electronic copy of the prospectus supplement, together with the accompanying prospectus, is available on the SEC's website at www.sec.gov. Alternatively, copies of the prospectus supplement, together with the accompanying prospectus, can be obtained by contacting: Axon Enterprise, Inc., 17800 North 85th Street, Scottsdale, AZ 85255; Attention: Legal (telephone: (480) 905-2000). Alternatively, copies of the prospectus supplement, together with the accompanying prospectus, can be obtained by contacting: Goldman Sachs & Co. LLC, c/o Prospectus Department, 200 West Street, New York, NY 10282 by email at [email protected], Morgan Stanley & Co. LLC, c/o Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by email at [email protected] and J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by email at [email protected] and [email protected].

This press release is for informational purposes only and is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other security, and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other security in any jurisdiction in which such offer, solicitation, or sale is unlawful. Information contained on, or that can be accessed through, Axon's website does not constitute part of the offering.

Forward-looking statements in this press release include, but are not limited to, statements regarding the completion of the offering, the timing of the closing, the intended use of proceeds and the effects of entering into the capped call transactions described above, as well as statements about Axon's future plans and goals, proposed products and services and related development efforts and activities; expectations about the market for Axon's current and future products and services, including statements related to Axon's user base and customer profiles. Words such as "may," "will," "should," "could," "would," "predict," "potential," "continue," "expect," "anticipate," "future," "intend," "plan," "believe," "estimate," and similar expressions, as well as statements in future tense, identify forward-looking statements. However, not all forward-looking statements contain these words.

Axon cannot guarantee that any forward-looking statement will be realized, although it believes it has been prudent in Axon's plans and assumptions. Achievement of future results is subject to risks, uncertainties and potentially inaccurate assumptions. The following important factors could cause actual results to differ materially from those in the forward-looking statements: Axon's exposure to cancellations of government contracts due to non-appropriation clauses, exercise of a cancellation clause or non-exercise of contractually optional periods; the ability of law enforcement agencies to obtain funding, including based on tax revenues; Axon's ability to design, introduce and sell new products, services or features; Axon's ability to defend against litigation and protect Axon's intellectual property, and the resulting costs of this activity; Axon's ability to win bids through the open bidding process for governmental agencies; Axon's ability to manage its supply chain and avoid production delays, shortages and impacts to expected gross margins; the impacts of inflation, macroeconomic conditions and global events; the impact of catastrophic events or public health emergencies; the impact of stock-based compensation expense, impairment expense and income tax expense on Axon's financial results; customer purchase behavior, including adoption of Axon's software as a service delivery model; negative media publicity or sentiment regarding Axon's products; the impact of various factors on gross margins; defects in, or misuse of, Axon's products; changes in the costs of product components and labor; loss of customer data, a breach of security or an extended outage, including by Axon's third-party cloud-based storage providers; exposure to international operational risks; delayed cash collections and possible credit losses due to Axon's subscription model; changes in government regulations in the United States and in foreign markets, especially related to the classification of Axon's products by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives; Axon's ability to integrate acquired businesses; the impact of declines in the fair values or impairment of Axon's investments, including Axon's strategic investments; Axon's ability to attract and retain key personnel; litigation or inquiries and related time and costs; Axon's ability to remediate the material weakness in Axon's internal controls; and counter-party risks relating to cash balances held in excess of federally insured limits. Many events beyond Axon's control may determine whether results it anticipates will be achieved. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could differ materially from past results and those anticipated, estimated or projected. You should bear this in mind as you consider forward-looking statements. The Annual Report on Form 10-K that Axon filed with the Securities and Exchange Commission ("SEC") for the year ended December 31, 2025, lists various important factors that could cause actual results to differ materially from expected and historical results. These factors are intended as cautionary statements for investors within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Readers can find them under the heading "Risk Factors" in Axon's Annual Report on Form 10-K for the year ended December 31, 2025, and investors should refer to them. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

Except as required by law, Axon undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures Axon makes on related subjects in Axon's Form 8-K, 10‑Q and 10‑K reports to the SEC.

Media Contact:
Kate MacKinnon
Vice President, Communications
[email protected]

SOURCE Axon

In the latest trading session, Axon Enterprise (AXON - Free Report) closed at $442.31, marking a -9.77% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.78%.

Prior to today's trading, shares of the maker of stun guns and body cameras had lost 18.89% lagged the Aerospace sector's loss of 13.87% and the S&P 500's loss of 1.99%.

Investors will be eagerly watching for the performance of Axon Enterprise in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.94, marking a 65.81% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $935.35 million, indicating a 31.62% increase compared to the same quarter of the previous year.

AXON's full-year Zacks Consensus Estimates are calling for earnings of $7.88 per share and revenue of $3.68 billion. These results would represent year-over-year changes of +15.04% and +32.42%, respectively.

It is also important to note the recent changes to analyst estimates for Axon Enterprise. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.67% higher. Axon Enterprise presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Axon Enterprise is currently exchanging hands at a Forward P/E ratio of 62.18. This valuation marks a premium compared to its industry average Forward P/E of 33.74.

Investors should also note that AXON has a PEG ratio of 2.48 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.21 at the close of the market yesterday.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Axon Enterprise Inc. AXON fell 9.93% intraday after announcing a proposed $1.0 billion offering of 0% convertible senior notes due September
2031, with a further $150 million available to underwriters to cover over-allotments. Goldman Sachs, Morgan Stanley, J.P. Morgan, RBC Capital Markets and Citigroup are joint lead book-running managers.

The notes convert into Axon stock at a rate set at pricing, with Axon able to settle in cash, shares or both. Part of the proceeds buys capped call transactions covering the shares initially underlying the notes, limiting dilution up to a cap. The rest goes to general corporate purposes, which Axon says may include acquisitions or investments.

At the end of the second quarter, Axon held $685 million of cash, equivalents and short-term investments against $1.75 billion of notes, a net debt position of $1.1 billion. Revenue grew 35% to $904 million and adjusted EBITDA reached $242 million, but free cash flow was negative $1 million in the quarter and negative $55.6 million across six months. Receivables and contract assets absorbed $306 million and inventory $80 million.