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Axon Enterprise (AXON - Free Report) closed the most recent trading day at $502.34, moving +2.12% from the previous trading session. This change outpaced the S&P 500's 0.05% gain on the day. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq lost 0.64%.

The maker of stun guns and body cameras's shares have seen an increase of 10.61% over the last month, surpassing the Aerospace sector's loss of 1.06% and the S&P 500's gain of 0.61%.

Analysts and investors alike will be keeping a close eye on the performance of Axon Enterprise in its upcoming earnings disclosure. The company's earnings report is set to go public on August 5, 2026. The company is expected to report EPS of $1.89, down 10.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $868.35 million, up 29.89% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.83 per share and revenue of $3.65 billion, which would represent changes of +14.31% and +31.45%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axon Enterprise. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 remained stagnant. Axon Enterprise is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Axon Enterprise's current valuation metrics, including its Forward P/E ratio of 62.82. This indicates a premium in contrast to its industry's Forward P/E of 37.1.

Also, we should mention that AXON has a PEG ratio of 2.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense Equipment was holding an average PEG ratio of 2.32 at yesterday's closing price.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% 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.

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

Assetmark Inc. reduced its holdings in Axon Enterprise, Inc (NASDAQ:AXON – Free Report) by 21.3% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 8,699 shares of the biotechnology company’s stock after selling 2,349 shares during the quarter. Assetmark Inc.’s holdings in Axon Enterprise were worth $3,694,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in Axon Enterprise by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 9,367,224 shares of the biotechnology company’s stock worth $5,319,928,000 after purchasing an additional 53,060 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Axon Enterprise by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 2,226,159 shares of the biotechnology company’s stock worth $1,265,657,000 after buying an additional 35,544 shares during the last quarter. Baillie Gifford & Co. raised its position in shares of Axon Enterprise by 1,198.7% in the 4th quarter. Baillie Gifford & Co. now owns 1,642,578 shares of the biotechnology company’s stock worth $932,869,000 after buying an additional 1,516,099 shares during the period. Sands Capital Management LLC raised its position in shares of Axon Enterprise by 11.6% in the 4th quarter. Sands Capital Management LLC now owns 1,609,436 shares of the biotechnology company’s stock worth $914,047,000 after buying an additional 167,095 shares during the period. Finally, Wellington Management Group LLP increased its stake in Axon Enterprise by 326.9% during the fourth quarter. Wellington Management Group LLP now owns 1,539,738 shares of the biotechnology company’s stock worth $874,463,000 after acquiring an additional 1,179,038 shares during the last quarter. 79.08% of the stock is owned by institutional investors and hedge funds.

Axon Enterprise Stock Performance NASDAQ:AXON opened at $491.49 on Thursday. The firm has a 50-day moving average of $478.98 and a two-hundred day moving average of $479.94. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.27 and a quick ratio of 1.93. The stock has a market cap of $39.61 billion, a P/E ratio of 197.39, a PEG ratio of 10.43 and a beta of 1.38. Axon Enterprise, Inc has a 1-year low of $339.01 and a 1-year high of $885.91.

Axon Enterprise (NASDAQ:AXON – Get Free Report) last announced its earnings results on Wednesday, May 6th. The biotechnology company reported $1.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.60 by $0.01. The business had revenue of $807.35 million for the quarter, compared to analyst estimates of $778.90 million. Axon Enterprise had a return on equity of 3.78% and a net margin of 6.90%.The company’s revenue for the quarter was up 33.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.47 earnings per share. On average, research analysts expect that Axon Enterprise, Inc will post 1.63 earnings per share for the current fiscal year.

Insider Transactions at Axon Enterprise In other Axon Enterprise news, CRO Cameron Brooks sold 1,242 shares of the stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $500.00, for a total transaction of $621,000.00. Following the transaction, the executive directly owned 49,710 shares in the company, valued at $24,855,000. This represents a 2.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Caitlin Elizabeth Kalinowski sold 564 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $478.97, for a total transaction of $270,139.08. Following the transaction, the director directly owned 3,632 shares of the company’s stock, valued at approximately $1,739,619.04. This represents a 13.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 58,989 shares of company stock valued at $30,527,983 over the last ninety days. 4.20% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Axon Enterprise Here are the key news stories impacting Axon Enterprise this week:

Positive Sentiment: RBC Capital Markets said Axon appears poised for bookings growth in the second quarter, supported by multiple emerging drivers, which points to continued demand for its public safety technology. Axon Enterprise Poised for Bookings Growth With Multiple Emerging Drivers, RBC Capital Markets Says Positive Sentiment: Axon appointed two new independent directors with deep technology and artificial intelligence experience, which could strengthen oversight and support future product and platform strategy. Axon Enterprise (AXON) Appoints Two Directors With Deep Tech And AI Experience Neutral Sentiment: Axon announced it will report second-quarter 2026 earnings on August 5, putting the stock in a wait-and-see mode ahead of results and guidance. Axon to Release Second Quarter 2026 Earnings on August 5, 2026 Neutral Sentiment: Recent coverage notes Axon is attracting trader attention, but the articles mainly reiterate the same core facts rather than adding a major new catalyst. Axon Enterprise, Inc (AXON) Is a Trending Stock: Facts to Know Before Betting on It Negative Sentiment: One valuation-focused article argued that Axon may be fully priced on a cash flow basis, even if it still screens as reasonable on sales multiples, reinforcing concerns that the stock’s recent run has left limited upside if growth cools. Axon (AXON) Stock Could Be Fully Priced On Cash Flow Yet A Bargain On Sales Negative Sentiment: Another note highlighted rising costs and pressure on margins, even though Axon is trying to offset them through efficiency initiatives and aims for better profitability later on. Can Axon Enterprise Improve Margin Performance Amid Rising Costs? Analysts Set New Price Targets A number of equities analysts have recently commented on the company. Citizens Jmp restated a “market outperform” rating and issued a $700.00 price objective on shares of Axon Enterprise in a report on Thursday, June 25th. UBS Group decreased their target price on Axon Enterprise from $570.00 to $440.00 and set a “neutral” rating for the company in a report on Thursday, May 7th. Barclays dropped their target price on shares of Axon Enterprise from $682.00 to $523.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. The Goldman Sachs Group set a $535.00 price target on shares of Axon Enterprise in a report on Thursday, May 7th. Finally, Piper Sandler upped their price target on shares of Axon Enterprise from $674.00 to $724.00 and gave the stock an “overweight” rating in a research report on Monday, July 13th. Fifteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $725.25.

Check Out Our Latest Report on Axon Enterprise

Axon Enterprise Company Profile (Free Report)

Axon Enterprise, Inc develops technology and weapons systems for public safety and law enforcement agencies, combining hardware, software and cloud services. The company’s hardware portfolio includes conducted energy weapons (commonly known as TASER devices), body-worn cameras and in-car camera systems. Axon pairs these devices with a suite of connected products and accessories designed to capture, store and manage field evidence.

Beyond hardware, Axon operates a subscription-based software platform for digital evidence management, evidence review and records management.

Read More Five stocks we like better than Axon Enterprise Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding AXON? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Axon Enterprise, Inc (NASDAQ:AXON – Free Report).

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Key Takeaways Axon Enterprise faced margin pressure in Q1 as higher costs, tariffs and R&D spending weighed on results.AXON expects a roughly 25.5% adjusted EBITDA margin in 2026 through cost management and efficiency gains.Axon Enterprise reorganized its business segments to improve cost control and operational efficiency. Axon Enterprise, Inc. (AXON - Free Report) has been subject to rising operating costs and expenses over time. The company’s cost of sales increased 38.8% in the first quarter of 2026, on a year-over-year basis. Also, its selling, general and administrative expenses surged 15.9% in the first quarter.

Although AXON’s adjusted EBITDA in the quarter increased 29.9% year over year to $201.6 million, the adjusted EBITDA margin declined 70 basis points (bps) to 25%. AXON’s adjusted gross margin in the quarter also fell 200 bps to 61.6%. The decline was attributable to the adverse impacts of higher costs and expenses, global tariffs and increased investment in R&D.

Nevertheless, the company’s focus on effective cost management, revenue growth and manufacturing efficiency is anticipated to boost its margin performance. For 2026, AXON currently expects an adjusted EBITDA margin of approximately 25.5%, relatively flat year over year. The company has set a long-term financial target to achieve about 28% of adjusted EBITDA margin by 2028, supported by annual revenues of $6 billion.

In first-quarter 2025, Axon Enterprise realigned its business segments to enhance its visibility into segment-specific performance and effectively manage costs. This strategic move is expected to continue supporting its margin performance and operational efficiency.

Peer’s Margin performanceIn first-quarter 2026, Tyler Technologies’ (TYL - Free Report) cost of sales and selling & marketing expenses both increased 6.4% on a year-over-year basis. Despite higher costs, Tyler Technologies’ gross margin improved 90 bps to 51.3% in the quarter, supported by revenue mix improvement and cloud efficiency gains.

Woodward, Inc.’s (WWD - Free Report) total costs and expenses rose 23% year over year in second-quarter fiscal 2026 (ended March 2026). Woodward’s selling, general and administrative expenses also rose 22.1% year over year. Despite the rise in costs, Woodward’s segmental margins expanded, which was supported by sales growth, improved mix of commercial services activity and solid defense OEM demand.

AXON’s Price Performance, Valuation and EstimatesShares of Axon Enterprise have gained 30.1% in the past three months against the industry’s decline of 0.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 54.41X, above the industry’s average of 39.83X. Axon Enterprise carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AXON’s 2026 earnings has been stable over the past 60 days.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the latest trading session, Axon Enterprise (AXON - Free Report) closed at $511.28, marking a -3.07% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.89% for the day. Elsewhere, the Dow saw an upswing of 0.74%, while the tech-heavy Nasdaq appreciated by 1.29%.

Heading into today, shares of the maker of stun guns and body cameras had gained 28.64% over the past month, outpacing the Aerospace sector's loss of 6.03% and the S&P 500's loss of 0.63%.

The investment community will be closely monitoring the performance of Axon Enterprise in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.89, reflecting a 10.85% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $868.35 million, indicating a 29.89% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $7.83 per share and a revenue of $3.65 billion, demonstrating changes of +14.31% and +31.45%, respectively, from the preceding 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, we can interpret positive estimate revisions as a good sign for the business outlook.

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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Axon Enterprise presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Axon Enterprise is currently trading at a Forward P/E ratio of 67.37. This indicates a premium in contrast to its industry's Forward P/E of 36.26.

It's also important to note that AXON currently trades at a PEG ratio of 2.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. AXON's industry had an average PEG ratio of 2.28 as of yesterday's close.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Key Takeaways AXON's Connected Devices revenues jumped 33% in Q1, driven by TASER 10 and Axon Body 4 demand.Axon Enterprise saw Platform Solutions revenues surge 95% on counter-drone, virtual reality and fleet growth.AXON raised its 2026 revenue growth outlook to 30-32%, up from its prior forecast. Axon Enterprise, Inc. (AXON - Free Report) is witnessing strong momentum in its Connected Devices segment. Segmental revenues surged 33% year over year in the first quarter of 2026, following an increase of 29.1% in 2025. Strong demand for its next-generation TASER 10 products, counter-drone equipment and virtual reality training services drove its results.

Growing popularity for the company’s advanced body-worn camera, Axon Body 4, also augmented the segment’s growth. With upgraded features such as a bi-directional communications facility and a point-of-view camera module option, this body camera is generating significant demand.

In the first quarter, revenues from the company’s TASER product line increased 19% year over year, driven by TASER 10, while those from the Personal Sensors surged 23%, led by Axon Body 4. Also, revenues from Platform Solutions product line soared 95%, supported by counter-drone, virtual reality and fleet.

Growing instances of terrorism and criminal activities, with concerns related to the ever-increasing fraudulent activities, will augur well for Axon’s products in the quarters ahead. Driven by business strength, Axon issued bullish guidance for 2026. It currently expects total revenues to increase approximately 30-32% year over year, higher than 27-30% guided earlier.

Segment Snapshot of AXON's PeersWoodward, Inc.’s (WWD - Free Report) Industrial business segment reported net sales of $387 million in the second quarter of fiscal 2026, up 20% year over year. Woodward generated 35.5% of its total sales from this segment in the quarter. The increase in revenues for Woodward’s segment is primarily attributable to strength across power generation, transportation and oil & gas markets.

Kratos Defense & Security Solutions, Inc.’s (KTOS - Free Report) Government Solutions segment’s first-quarter 2026 revenues increased 20.4% year over year to $288.4 million. The segmental revenues were driven by strength in Kratos Defense’s Turbine Technologies, Defense Rocket Systems and Microwave Products businesses. Kratos Defense derived 77.7% of its total revenues from this segment during the quarter.

AXON’s Price Performance, Valuation and EstimatesShares of Axon have gained 36% in the past three months compared with the industry’s growth of 1.8%.

Image Source: Zacks Investment Research

From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 58.61X, above the industry’s average of 42.74X. Axon carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AXON’s 2026 earnings has been stable over the past 60 days.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors might want to bet on Axon Enterprise (AXON - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Axon is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Axon imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for AxonThis maker of stun guns and body cameras is expected to earn $7.83 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Axon. Over the past three months, the Zacks Consensus Estimate for the company has increased 15.3%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Axon to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

AUSTIN, Texas, July 08, 2026 (GLOBE NEWSWIRE) -- NetworkNewsWire Editorial Coverage: American law enforcement is in the middle of a legal and cultural reckoning over use of force. Courts are demanding more from officers before they reach for traditional weapons, and the Supreme Court’s unanimous 2025 ruling in Barnes v. Felix has made that demand structurally unavoidable: Every use-of-force decision must now be evaluated against the full context of the encounter, not just the moment it occurred. That legal shift is creating real procurement demand for tools that give officers options earlier in an encounter, before the situation reaches the force threshold that generates liability. Wrap Technologies Inc. (NASDAQ: WRAP) (profile) builds exactly those tools, and last week the company received a ruling from the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) that may be the single most consequential development in its commercial history: ATF Ruling 2026-2 formally classified the BolaWrap(R) 150 as an instrument of restraint — not a firearm, not a weapon — under both the Gun Control Act and the National Firearms Act. The ruling strengthens Wrap Technologies’ position among other tech leaders operating in the global public-safety space, including Axon Enterprise Inc. (NASDAQ: AXON).

The legal pressure on law enforcement agencies to demonstrate proportionate, context-aware force decisions has been building for years. It reached when the U.S. Supreme Court issued its 9–0 decision in Barnes v. Felix. ATF Ruling 2026-2 formally declared that the BolaWrap 150 is not a “firearm” under the Gun Control Act and not an “any other weapon” under the National Firearms Act.The ATF ruling does more than simplify procurement. It establishes a legal definition of what the BolaWrap 150 is and, more importantly, what it is not.The market impact of ATF Ruling 2026-2 extends well beyond the agencies already evaluating the BolaWrap 150.There is a meaningful difference between a product that agencies can choose to purchase and a product whose foundational category has been defined by federal regulatory action.
Click here to view the custom infographic of the Wrap Technologies editorial.

The Law Is Forcing a Force Continuum Rethink

The legal pressure on law enforcement agencies to demonstrate proportionate, context-aware force decisions has been building for years. It reached a new threshold in May 2025, when the U.S. Supreme Court issued its 9–0 decision in Barnes v. Felix. The ruling eliminated the “moment-of-threat” doctrine used by several federal circuits. Following the ruling, courts can no longer assess the reasonableness of an officer’s use of force by looking only at the instant force was applied. Every preceding decision in the encounter is now a consideration.

The standard the court reaffirmed is drawn from a much earlier case: Graham v. Connor, argued in 1989. The case concluded that force must be objectively reasonable under the totality of the circumstances known to the officer. As the FBI Law Enforcement Bulletin noted in its analysis of Barnes, “the totality of the circumstances inquiry into a use of force has no time limit.” That single sentence carries significant operational weight. It means that if an officer had a less-intrusive option available and bypassed it, that decision can now be examined in court.

The practical consequence is already reshaping how agencies think about procurement. Departments are not just looking for tools that work; they are looking for tools that demonstrate a documented effort to de-escalate before force. The Police Chief Magazine analysis of Barnes described the ruling as “a landmark decision . . . fundamentally altering the legal evaluation of excessive force claims under the Fourth Amendment.” For agencies building their response-to-resistance frameworks, that creates a structural tailwind for adoption of intermediate tools that fill the gap between verbal commands and pain-compliance devices.

Wrap Technologies has been positioning for exactly this shift. The company has described its strategic framework as a move from “use of force” to “response-to-resistance,” a framing that aligns directly with where courts and departments are heading.

The BolaWrap 150 is purpose built for the pre-escalation window. It operates at 10 to 25 feet, deploys a Kevlar tether to physically contain a noncompliant subject, and does not involve pain, shock or impact. Under the new legal standard, having that tool on the duty belt, and having used it, may matter as much in a courtroom as it does on the streets. ATF Ruling 2026-2 enters this environment as a catalyst, removing barriers that were slowing adoption of a device specifically built for the moment courts are now scrutinizing most.

ATF Ruling 2026-2 Clears Procurement Path

ATF Ruling 2026-2, signed by ATF Director Robert Cekada and effective July 2, 2026, formally declared that the BolaWrap 150 is not a “firearm” under the Gun Control Act and not an “any other weapon” under the National Firearms Act. The ruling goes further than a simple classification update. The ATF affirmatively describes the BolaWrap 150 as “merely an instrument of restraint” on the basis that it is not an instrument of offensive or defensive combat.

The full ruling also notes the classification is grounded in the U.S. Supreme Court’s 2025 decision in Bondi v. VanDerStok and “explicitly supersedes any prior ATF classification of the BolaWrap 150.” The regulatory significance of that reclassification is concrete and immediate. Products classified as firearms or “any other weapons” under federal law carry a compliance burden, including federal firearms licensee requirements, serialization, registration and a procurement process that routes through weapons-specific budget lines and approval chains.

For corrections facilities, schools, hospitals and international buyers, those requirements have historically added friction or even worse, made procurement structurally inaccessible. Under a restraint classification, the procurement sequence compresses to standard equipment evaluation, purchase order and approval through a nonlethal or safety-equipment budget line. No FFL dealer requirement. No weapons appropriation.

The company estimates the sales cycle impact directly. Prior to the ruling, domestic procurement cycles ran three to nine months. Under the new classification, the company projects that compresses to four to eight weeks. International cycles, previously four to six months, are projected to fall to the same four-to eight-week range, a function of eliminating dual-layer compliance friction at both the U.S. export level and the importing country’s domestic law. “We believe Ruling 2026-2 removes a federal classification framework that complicated BolaWrap procurement across corrections, civilian and international markets,” said Wrap Technologies CEO Scot Cohen.

A Defensible Category No Competitor Can Replicate

The ATF ruling does more than simplify procurement. It establishes a legal definition of what the BolaWrap 150 is and, more importantly, what it is not. The federal government’s own analysis has now confirmed that BolaWrap is not an instrument of combat. It is an instrument of restraint. That distinction places the BolaWrap in a category of its own, the only tool on the standard duty belt that is legally and functionally defined as neither a weapon nor a pain-compliance device.

The current law enforcement tool landscape is dominated by conducted-energy weapons such as the TASER and impact munitions, tools that operate through pain compliance or incapacitation. Each of those tools carries physiological risk and generates its own legal exposure under the Barnes totality standard.

The BolaWrap 150, by contrast, restrains through physical tethering. It does not shoot, strike, shock or incapacitate. That functional distinction is now matched by a legal one. Wrap Technologies describes this as the creation of a new category in the law enforcement response matrix, what the company calls the “Wrap Window.”

This category covers the operational space between verbal command and the application of any pain-compliance or force option. The ATF’s formal recognition of BolaWrap as “merely an instrument of restraint” is, as the company stated, “the federal government’s formal acknowledgment that this category exists, and that Wrap Technologies created it.” That category ownership, grounded in a federal ruling rather than marketing language, is the kind of competitive position that is structurally difficult for other entrants to replicate.

Accessibility to a Much Larger Market

The market impact of ATF Ruling 2026-2 extends well beyond the agencies already evaluating the BolaWrap 150. The ruling opens four procurement categories that the company believes were structurally inaccessible under a weapons classification.

The first is corrections and detention; more than 5,000 federal and state facilities can now evaluate BolaWrap through standard nonlethal equipment channels, without weapons-compliance burdens. The second is gun-free and civilian-safety environments. Schools, universities, hospitals, federal buildings, courthouses and stadiums may now evaluate the device under civilian safety procurement. The third category is international deployment. Across Wrap’s distribution network spanning more than 60 countries, the ruling removes dual-layer compliance friction at both the export level and the importing nation’s domestic law.

The fourth, and potentially most significant long-term category, is autonomous response platforms. The DFR-X drone-based, first-responder system deploys the BolaWrap 150 as its nonlethal payload. Under a weapons classification, that system faced weapons-carriage regulatory complexity across FAA rules, state drone law and international aviation frameworks. The restraint classification potentially removes that complexity.

The company estimates the combined addressable opportunity across these four newly accessible segments at $3 billion or more in global addressable spend. That figure represents market access that was structurally blocked prior to this ruling. The underlying driver is the scale of the unserved opportunity: Roughly 90% of law enforcement encounters involve unarmed, nonviolent but noncompliant subjects, the precise scenario the BolaWrap 150 is designed to address.

That statistic, widely cited in use-of-force training literature, reframes the device from a specialized accessory into a candidate for standard-issue deployment. The ruling removes the last structural barrier between that potential and the agencies now legally required to document their pre-escalation options.

From Vendor to Standard-Setter: Federal Validation Changes the Game

There is a meaningful difference between a product that agencies can choose to purchase and a product whose foundational category has been defined by federal regulatory action. ATF Ruling 2026-2 moves Wrap Technologies from the first column to the second.

When the government’s own firearms authority formally classifies a device as a restraint instrument rather than a weapon, that ruling can become a procurement reference point. It may shorten the internal review cycles that slow agency-wide deployments. It could provide legal cover for procurement officers authorizing purchase outside traditional weapons channels. And it could remove the investor overhang that has historically attached to companies whose products carry weapons-classification ambiguity.

The ruling arrives as Wrap is building out the broader integrated platform of which BolaWrap is the nonlethal payload layer. The company’s WrapShield(TM) architecture, connecting Frenel Imaging’s TPiCore(R) polarimetric detection technology through AI classification to tiered nonlethal response, positions the company at the intersection of counter-UAS, autonomous public safety and nonlethal restraint. The DFR-X drone interdiction system, WrapReality(R) immersive training and WrapVision(TM) body-worn cameras complete a portfolio that spans the full incident lifecycle from detection through documentation.

In its most recent fiscal update, Wrap Technologies reported Q1 2026 revenue growth of 45%, $3.2 million in bookings and a purchase order from the U.S. Department of Homeland Security, all commercial momentum established before the ATF ruling removed the procurement barriers the company believes were slowing adoption across corrections, civilian and international markets.

The ruling does not change what the BolaWrap 150 does. It changes what agencies can do with it, how quickly they can buy it and what budget lines they can use to fund it. For a company already generating 45% revenue growth, the implications of accessing additional markets could prove to be significant.

New Standards in Real-Time Intelligence

Other news in the global-safety sector reflects key progress made by other leaders in the space.

Axon Enterprise Inc. (NASDAQ: AXON) announced a new standard in real-time intelligence during Axon Week 2026, the company’s annual user conference. According to the announcement, new Axon AI-powered capabilities enable agencies to detect incidents earlier, access critical information faster and coordinate responses more effectively while maintaining security and data control across the full incident lifecycle.

In the United States alone, more than 240 million 911 calls are placed each year, the company noted. Those calls are increasingly including video, images and telemetry. At the same time, body-worn and static cameras generate millions of hours of footage. This “data tax" means that vital context is frequently spread across systems, or critical moments can be missed, which slows response times and increases risk to both officers and their communities.

Axon’s latest technology delivers clarity, speed and coordination across live video, 911 and reporting workflows. The enhanced AI platform connects data, devices and workflows across the public safety ecosystem, reducing complexity for officers previously relying on separate systems, and helping agencies respond with more precision and speed.

As both legal and societal demands increase for more responsible response to public-safety concerns, the ability to meet those demands with transformative services, platforms and technology may prove to be the key to a company’s future growth and success.

For more information, visit Wrap Technologies.

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The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Axon Enterprise (AXON - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

Axon Enterprise is a member of the Aerospace sector. This group includes 77 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Axon Enterprise is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for AXON's full-year earnings has moved 15.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, AXON has moved about 9.6% on a year-to-date basis. At the same time, Aerospace stocks have gained an average of 7.3%. This means that Axon Enterprise is outperforming the sector as a whole this year.

Another Aerospace stock, which has outperformed the sector so far this year, is General Dynamics (GD - Free Report) . The stock has returned 12% year-to-date.

The consensus estimate for General Dynamics' current year EPS has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Axon Enterprise belongs to the Aerospace - Defense Equipment industry, which includes 37 individual stocks and currently sits at #51 in the Zacks Industry Rank. This group has gained an average of 16.8% so far this year, so AXON is slightly underperforming its industry in this area.

On the other hand, General Dynamics belongs to the Aerospace - Defense industry. This 39-stock industry is currently ranked #110. The industry has moved +3.4% year to date.

Axon Enterprise and General Dynamics could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.

Key Takeaways AXON crossed its 200-day SMA after a 60.2% three-month gain, outperforming peers and the S&P 500.Axon saw strong growth across TASER, body cameras, software and the Dedrone platform in first-quarter 2026.AXON raised its 2025 revenue growth outlook to 30-32% amid strength across multiple business segments. Axon Enterprise, Inc. (AXON - Free Report) crossed its 200-day simple moving average (SMA) on June 30, reaching a key support level from a technical perspective. This reflects a positive market sentiment and confidence in the company's financial health and long-term prospects.

AXON Overtakes the 200-Day Moving Average
Image Source: Zacks Investment Research

Considering the past few months’ price movement, the stock was seen outperforming the benchmarks, the broader industry, as well as its major peers. Over the past three months, shares of the company have surged 60.2%, outpacing the industry and the S&P 500, which have returned 16.6% and 13.3%, respectively.

Shares of its key rivals like Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) and Leonardo DRS, Inc. (DRS - Free Report) have declined 23.1% and 5.3%, respectively.

3-Month Price Performance
Image Source: Zacks Investment Research

Closing at $597.04 last Thursday, the stock is trading below its 52-week high of $885.92 but significantly higher than its 52-week low of $339.01. The stock is also trading above its 50-day moving average. With investors’ sentiment starting to pick up for Axon, it is the right time to assess the stock’s potential upside.

Factors Favoring the CompanyAxon’s Connected Devices segment is thriving on the back of strong demand for TASER 10 devices. Growth in cartridge revenues, driven by the higher adoption of the TASER products, has also been augmenting the results. Solid demand for its next-generation body-worn camera, Axon Body 4 and counter-drone equipment also supports its growth.

In first-quarter 2026, revenues from the company’s TASER product line increased 19% year over year, driven by TASER 10, while those from the Personal Sensors surged 23%, led by Axon Body 4. Also, revenues from the Platform Solutions product line soared 95%, supported by counter-drone, virtual reality and fleet. Revenues from the Connected Devices segment surged 32.8% year over year in the quarter, following an increase of 29.1% in 2025.

The company is also witnessing solid momentum in its Software & Services segment, driven by an increase in the aggregate number of users to the Axon network. Continued momentum in digital evidence management and increased adoption of its latest software offerings are driving the segment’s growth.

Strong customer satisfaction and new engagement are consistently driving the purchase of additional services. This ongoing expansion supports a growing base of annual recurring revenues (ARR). After witnessing a year-over-year 39.6% jump in 2025 segmental revenues, the metric increased 35% in the first quarter.

Given the rising global demand for Counter-Unmanned Aircraft Systems (CUAS), Axon is also witnessing strong momentum in its Dedrone platform. Revenues from the Dedrone platform saw robust growth of about 300% year over year in first-quarter 2026. The company also recently launched Dedrone C2, an upgraded version of the platform. This C2 version comes with enhanced sensor fusion technology, offering stronger detection capabilities.

Also, the company’s acquisition of Carbyne (in February 2026) enabled it to come up with Axon 911, a state-of-the-art, fully integrated solution that is designed to connect callers and responders instantly. Driven by strength across its businesses, AXON currently expects 2025 revenues to increase approximately 30-32% year over year, higher than 27-30% guided earlier.

AXON’s Earnings Estimate Revision & Y/Y Growth Estimate
Image Source: Zacks Investment Research

The company’s earnings estimates for 2026 have declined 3.6% to $7.83 per share over the past 60 days. However. the figure indicates year-over-year growth of 14.3%. Earnings estimates for 2027 have inched down 0.3% to $10.64 per share. The figure indicates year-over-year growth of 35.9%.

The Zacks Consensus Estimate for Axon’s 2026 revenues is pegged at $3.64 billion, indicating year-over-year growth of 31%. The consensus estimate for its 2027 revenues stands at $4.60 billion, suggesting an increase of 26.3% year-over-year.

Stock Valuation
Image Source: Zacks Investment Research

The stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 64.39X compared with the industry average of 46.82X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.

Both peers, Kratos Defense and Leonardo DRS, are trading cheaper compared with AXON. Notably, Kratos Defense and Leonardo DRS are trading at 63.07X and 32.09X, respectively.

Should You Buy AXON Stock Now?Persistent strength across Axon’s TASER and Software & Sensors segments, along with its growing foothold in the counter-drone equipment market, positions it favorably for impressive growth in the quarters ahead. The company’s strategic acquisitions and investments in product innovations should also support its top-line performance.

Despite its expensive valuation, positive analyst sentiment and robust growth prospects indicate it is the right time for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

2026 has been a banner year for one segment of the AI sector.

Semiconductor stocks have soared, driven by the massive AI infrastructure build-out and shortages in products like memory chips. As a result, the iShares Semiconductor ETF, which tracks major chip stocks, has doubled through the first half of the year.

However, AI stocks with exposure to software have mostly underperformed, as the iShares Expanded Tech-Software Sector ETF, which holds the leading software-as-a-service (SaaS) stocks, is down 16%, significantly underperforming the S&P 500.

While some of those stocks deserve to be down, others have gotten thrown out with the bathwater, and one that looks oversold at this point is Axon Enterprise (AXON +5.95%), a law enforcement technology known for making TASER conductive electrical weapons, body and dashboard cameras, and a suite of software to help law enforcement agencies manage and process data like evidence, records, and investigations.

Historically, Axon has been a big winner on the stock market. The stock is up around 100,000% since its 2001 IPO when it was just a one-product company named TASER, but lately it's struggled. A nine-year streak of gains was snapped last year when the stock fell 6%, and it's been down most of this year as well, now off 30% from its peak in Aug. 2025.

For AI investors looking to rotate away from chip stocks for stocks that look oversold, Axon looks intriguing at the current price.

Let's take a closer look at Axon and what it's doing with AI.

Image source: Axon Enterprise.

An overlooked AI stock While some software stocks have reported slowing growth due to either maturing markets or disruption from AI-native products like Anthropic's Claude Code, that isn't the case with Axon.

Revenue grew 34% in the first quarter on 125% net revenue retention, showing existing customers increased their software spend with the company by 25% over the last four quarters. It also raised its full-year revenue growth guidance from 27%-30% to 30%-32%, a clear sign of confidence from management.

While its core products like TASERs, cameras, and software continue to deliver solid growth, the company is also rapidly innovating with AI and other cutting-edge technologies.

Revenue from AI products rose more than 700% from a year ago. Those include Draft One, a generative-AI tool that writes first drafts of police reports based on body camera footage and audio, and software that can answer policy questions during arrests. Other AI products include Axon Assistant, a voice companion that can provide real-time translation and secure research capabilities, and Axon Vision, which scans video footage and tracks human forms to automatically prioritize or edit footage for review.

Axon has also moved into the drone market with the help of its 2024 acquisition of Dendrone, which has enhanced its drone-as-first-responder vertical and its counter-drone security business. Revenue from counter-drone products was up more than 300% in the first quarter.

Overall, the company balances a healthy core business with innovative growth opportunities in new technologies like AI.

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Will Axon keep climbing? Axon stock has soared this week, following a disclosure on Monday that President Trump bought between $1 million and $5 million worth of the stock in February. That news, which also included a report that Immigration and Customs Enforcement (ICE) solicited a $220 million TASER contract, portends more growth for the company from the federal segment, and Trump's ownership could give it favorable treatment as well.

Axon isn't cheap, trading at a price-to-earnings ratio of close to 100 based on adjusted earnings, and a price-to-sales ratio of 15. However, the company combines strong growth, solid margins, and significant upside potential with AI and its mission of making the bullet obsolete.

The catalyst from Trump's purchase of the stock also shows there's plenty of room for growth if investor sentiment swings back in its favor.

If you're looking to diversify your AI holdings away from chip stocks and other traditional tech stocks, Axon looks like a great choice.

On June 29, 2026, Axon Enterprise Inc (AXON) shares rose 9.8% today, bringing the current price to $510.60. This price is within a 52-week range of $339.01 to $

A CNBC report by Luke Fountain, aired June 29, 2026, walks through a sequence that government watchdogs have flagged and the White House has rejected. President Trump’s Q1 2026 financial disclosures show a purchase of between $1 million and $5 million in shares of Axon Enterprise (NASDAQ:AXON | AXON Price Prediction), the top U.S. taser maker.

Two weeks later, U.S. Immigration and Customs Enforcement announced it was looking for vendors on a five-year, $220 million contract to more than quadruple its taser inventory from 4,300 units to almost 18,000. The timing, according to the CNBC report, has drawn scrutiny from ethicists and government watchdogs.

For investors, the headline matters because Axon is already the dominant supplier to U.S. law enforcement, and federal procurement of this size sits squarely inside the growth story management has been selling. The stock opened sharply higher on the news, trading around $513 is up over 10%. Even with that pop, shares are down 38% over the past year from levels last seen in summer 2025.

The purchase, then the procurement According to Fountain’s reporting, the president’s disclosed AXON purchase landed in Q1 2026, and ICE went public with its tasers solicitation roughly two weeks after. The backdrop for that solicitation is an expanding detainee population.

CNBC notes that ICE detention held a little over 60,000 people in April 2026, up from a little more than 37,000 at the end of fiscal year 2024. A larger detention footprint is a larger addressable market for conducted-energy weapons, body cameras, and the digital evidence platform Axon bundles around them.

Axon itself has not been quiet in Washington. The CNBC piece reports the company spent over $2.4 million lobbying Congress in 2025, its highest in 24 years. Whether that spending touched the ICE process at all is a separate question, and Fountain does not allege it did.

Why experts told CNBC Axon is the front-runner Fountain’s framing on the competitive landscape is direct. “Experts tell me Axon would be the front runner. It made the tasers currently used by ICE, and the requirements and capabilities outlined by the agency appear to match Axon’s models,” he said on air.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Axon Enterprise didn't make the cut. Grab the names FREE today.

Axon already sells the TASER 10 into federal agencies, runs the evidence.com cloud most departments standardize on, and has been pitching Q1 2026 revenue of over $800 million, up 34% year over year as proof the platform is sticky. Switching costs for a federal customer mid-deployment are real, which is why incumbents tend to win recompetes.

Operationally, Q1 2026 already showed federal momentum. The company reported its strongest quarter on record, with nine consecutive quarters of beating revenue estimates and full-year guidance raised. Analyst price targets sit well above the current quote. RBC Capital reaffirmed Buy with a $735 price target, and the consensus target across covering analysts is $712.75.

The White House denial and what CNBC did not find The White House told CNBC that “Trump only acts in the best interest of the American public, and there’s no conflict of interest,” adding that the president’s assets are managed by independent third parties with no involvement from Trump or his family.

Fountain explicitly underlined the limits of what reporters had established. “There is no evidence that Trump was involved or had knowledge of the procurement process, that the contracting officials knew about his stock purchase, or that Axon intended to take advantage of Trump buying stock,” he told viewers.

What it means for investors The CNBC report is careful on that distinction, and so is the framing here. For shareholders, the more durable issue is the one Axon has flagged in its own filings, namely heavy reliance on government budgets and non-appropriation clauses that let agencies walk away.

A $220 million ICE award would feed an already-growing federal book. A delay, or a competitive surprise, would test the thesis. The political conversation is a separate track, and the CNBC piece is the document of record on it.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Axon Enterprise didn't make the cut. Grab the names FREE today.

President Donald Trump bought as much as $5 million in shares of Axon Enterprise — maker of Tasers, body cameras and policing software — two weeks before Immigration and Customs Enforcement sought a five-year, $220 million contract that experts told CNBC appeared tailored to the company's weapons.

On Feb. 10, Trump purchased between $1 million and $5 million worth of Axon stock, according to federal disclosures he filed in May. On Feb. 24, ICE posted a notice seeking roughly 17,800 new Tasers, along with unlimited cartridges and training.

The White House has said Trump's assets are held in a trust managed by his children and that Trump's investments are managed by independent third-party firms, not Trump or his family.

"There are no conflicts of interest," spokesperson Anna Kelly told CNBC, calling the scrutiny a "tired narrative" pushed by Democrats.

Trump's disclosures with the U.S. Office of Government Ethics, made public May 14, show more than 3,700 transactions, with the total amount for each listed as a range rather than an exact figure.

Under federal law, presidents are exempt from the criminal conflict-of-interest statute that applies to most executive branch officials.

The ICE notice does not name Axon, which makes about 90% of U.S. Tasers according to investment firm Brown Advisory, but it calls for "conductive-energy weapons" with specifications and capabilities that procurement reviewers and three policing experts told CNBC appeared to match only Axon products. The company already supplies the federal government with Tasers.

If finalized, the purchase would more than quadruple ICE's current Taser arsenal, replacing about 4,300 devices in the field, according to the February notice.

The notice refers to an upgrade to the "T10," Axon's "TASER 10" model, to replace ICE's older "X26P/X2 Tasers," which are also Axon-made. It also specifies features associated with "TASER 10," including a 45-foot range and 10 individually targeted probes — all specifications and capabilities that procurement experts say effectively foreclose other bidders.

There's no evidence Trump was involved in or had knowledge of the procurement process, that contracting officials knew of his stock purchase or that Axon knew that Trump was a shareholder. Trump bought the stock on Feb. 10, but the purchase did not become public until his financial disclosure was released in May. There is no indication Axon had access to non-public information about the president's personal investments.

The ICE notice was part of the standard federal procurement process. Federal procurement records show no contract has been awarded yet, and because the notice was a "Request For Information" rather than a formal solicitation, there is no public record showing which vendors, if any, responded.

Axon did not respond to requests for comment on whether it discussed the potential Taser purchase with ICE, DHS or White House officials before ICE posted the Feb. 24 notice.

The timing of the notice raises questions for ethics and three policing experts in part because of its proximity to Trump's stock purchase.

The president was also carrying out his pledge to enact mass deportations. Trump's Feb. 10 purchase occurred weeks after federal agents in Minneapolis shot and killed two U.S. citizens who were protesting an immigration crackdown in the city. Civil rights advocates have decried the killings of protesters as an overreach of law enforcement.

"What happened [in Minneapolis] showed how ICE agents have a hard job," said Deborah Fleischaker, a former acting chief of staff at ICE during the Biden administration. "The agency has a responsibility to make sure they have appropriate modern tools and training, but it's vital that new purchases are made for the right reasons."

Fleischaker, now a senior advisor for immigration policy and strategy at UnidosUS, said the timing "raises red flags," while cautioning it is impossible to assess from the public record whether anything improper occurred. UnidosUS is a nonprofit, nonpartisan Hispanic civil rights advocacy group.

"It is not smart to buy stock in a company that was impacted by the decisions you would be making at the agency," Fleischaker said. "I would have stayed far, far away from actual impropriety, or the appearance of impropriety."

Read more on Trump investmentsCompany that bet big on Trump-backed crypto says its fortunes have improvedTrump family got about $500M from crypto venture — but investors saw steep lossesTrump Jr. calls banking a 'Ponzi scheme' that forced family to create crypto businessThe Trump family crypto empire looks to Asia: Eric Trump talks Bitcoin in Hong KongTrump family says U.S. dollar needs an upgrade and they are the ones to do itEthics experts said the concern is not proof of wrongdoing, but the appearance of a conflict.

"The concern is that [Trump] bought into a company whose business could grow if his own administration expands immigration enforcement," Jordan Libowitz, vice president of communications at Citizens for Responsibility and Ethics in Washington, told CNBC. CREW is a liberal-leaning, nonpartisan watchdog group on government ethics.

Axon shares rose more than 22% in the month after Trump's purchase, before paring those gains. As of the June 26 close, the stock was up about 7% from his purchase date. If Trump bought near the top amount of the disclosed range, the potential paper gain could be worth roughly $350,000 as of market close on June 26. In the week following ICE's notice for seeking a contract, the company's stock rose more than 34%.

ICE and its parent agency, the Department of Homeland Security, did not respond to requests for comment. CNBC asked the agencies whether the purchase has been awarded, why ICE is seeking such a large expansion, how many vendors expressed interest, whether any company besides Axon could meet the requirements and whether the deal requires DHS secretary-level approval.

A person familiar with the procurement, who spoke on condition of anonymity due to fear of retaliation for discussing the pending ICE notice, said awarding the Taser contract appears to be stalled by its price tag and a shakeup in DHS leadership.

The person said ICE posted the contract notice about a week before then-Homeland Security Secretary Kristi Noem was fired and before she had signed off on it. Under Noem, DHS rules required expenditures over $100,000 to be personally approved by the secretary's office. Homeland Security Secretary Markwayne Mullin canceled the rule in April.

It's unclear what the timeline for awarding the contract is, but the person familiar with the procurement said DHS is expected to continue pursuing a deal.

Axon's growing federal footprintFor Axon, the financial upside may not stop at Tasers.

The roughly $35 billion company's biggest growth engine is the policing infrastructure that can follow weapons purchases: cloud storage, evidence-management systems, body cameras, real-time operations tools and AI products. Policing experts say one-time device orders can turn into a long-term technology relationship.

"If Trump expands ICE, Axon could be selling the infrastructure behind the crackdown," said Matthew Guariglia, a senior policy analyst at the Electronic Frontier Foundation focused on policing surveillance who has written extensively about Axon. "It can sell the cameras, cloud storage, software and AI tools that come with a bigger federal enforcement machine." The nonprofit group advocates for privacy and free speech online.

Axon already has a $370 million DHS body-camera and software contract awarded in 2023, though only about $67.5 million has been obligated so far, according to HigherGov, a government market-intelligence platform that tracks federal contracts and grants.

The potential ICE Taser deal would land as Axon is already riding record demand. The company reported its two highest-revenue quarters on record: $796.7 million in the fourth quarter of 2025, up 39% from a year earlier, and $807.3 million in the first quarter of 2026, up 34%, fueled by Taser sales and fast-growing AI products.

Axon executives told investors in February that DHS contracts are a "major opportunity."

Axon has been staffing up to chase that opening. On a May 6 earnings call, Axon President Joshua Isner said the company had "rebuilt a large portion" of its federal team and hired Claudia Davidson from Palantir, where she spent more than seven years helping expand the data-mining and defense contractor's business with federal agencies.

"We're seeing renewed interest in body cameras and Tasers in federal law enforcement," Isner told investors, adding that Axon's federal business was "trending very much in the right direction" and that, "with a few things going our way, it could be a banner year in Fed."

However, civil liberties advocates warn that ICE is wading deeper into Axon's surveillance ecosystem.

Axon's software works to combine live feeds from body cameras, drones, fixed cameras and other sources. If ICE expands raids and works more closely with state and local police, advocates warn that this kind of system could give federal agents a real-time map of local operations.

"If they are able to plug into Ring cameras, livestreams, body cameras and other local feeds, then suddenly you are not just talking about officer safety or accountability," Guariglia said. "You are talking about a platform that could give federal law enforcement a real-time picture of where people are, what is happening on the ground and how to respond with local precision."

Axon announced a Ring partnership in 2025 that lets Ring users voluntarily share footage with law enforcement through Axon's evidence platform. Axon's Fusus platform separately aggregates shared community cameras, body cameras, drones and other feeds onto a real-time map.

Fleischaker said the proposed Taser use expansion via the DHS contract appears consistent with the Trump administration's broader immigration agenda.

"It indicates what we know from other places, which is that the Trump administration has and will continue to ramp up immigration enforcement beyond levels we've ever seen," Fleischaker said. "That requires lots and lots of enforcement, and they would be procuring Tasers to be a part of that effort."

Politically connectedAxon's growth strategy has also led the company to boost its spending in Washington.

Axon spent nearly $2.5 million lobbying last year, its highest annual total, according to OpenSecrets, a nonprofit organization that tracks political spending. Its targets included legislation and regulation around body cameras, counter-drone technology, digital evidence management and other law-enforcement products it is pushing into federal agencies.

And that push appears to be gaining ground. Congress has proposed a $20 million line item in DHS appropriations requiring the agency to outfit immigration enforcement agents with body cameras, partly as a result of heavy lobbying by Axon, policing experts say.

Democrats have joined the effort, too. Sens. Ruben Gallego and Mark Kelly, both Arizona Democrats, introduced legislation requiring all DHS officers to wear body cameras. The legislation has no Republican support, making it unlikely to advance in the Republican-controlled Senate.

Donors connected to Scottsdale, Arizona-based Axon donated over $20,000 to Gallego during the 2024 election cycle when he ran for the Senate, according to OpenSecrets.

Gallego and Kelly, who have publicly championed body-camera and use-of-force requirements for ICE, did not respond to requests for comment on Axon's position as a likely beneficiary of body-camera mandates.

On Capitol Hill, Democrats have called for body cameras as an accountability measure and as a political bargaining chip with Republicans. For Axon, they are also a gateway product, policing experts say, to tie federal officers to its cloud storage, evidence software and AI tools.

"Body cameras can create a durable technology relationship with law enforcement agencies because the footage has to be stored, managed, analyzed and integrated into broader evidence systems," Guariglia said.

Axon's political spending has also drawn scrutiny from shareholders.

The Nathan Cummings Foundation sued Axon in January to stop the company from excluding a shareholder proposal seeking more disclosure around its political spending.

"Since Trump came into office, Axon has spent enormous amounts of money in politics to curry favor and support contracts and laws that benefit the company," Richard Kirby, a former SEC attorney who represented the foundation in its lawsuit against Axon that settled March 9, told CNBC. "That is exactly why investors need transparency."

Key Takeaways AXON's Dedrone offerings help agencies detect, track and minimize unauthorized drone threats.AXON launched Dedrone C2 with enhanced sensor fusion and mitigation management capabilities.AXON's Dedrone platform revenues grew about 300% year over year in Q1 2026. Axon Enterprise, Inc. (AXON - Free Report) is strengthening its foothold in the counter-drone space with the growing capabilities of its Dedrone offerings and Artificial Intelligence (AI)-powered command-and-control platform. Equipped with advanced radar, radio frequency (RF) and acoustic sensors, the company’s Dedrone offerings enable law enforcement agencies to locate, track and minimize the threat of unauthorized drones.

It’s worth noting that Axon acquired Dedrone, a global leader in airspace security, in October 2024. The inclusion of Dedrone’s advanced airspace technology boosted AXON's capability to enable customers to protect their communities against drone threats and improve response to critical incidents.

The company recently launched Dedrone C2, an upgraded version of the Dedrone platform. This C2 version comes with enhanced sensor fusion technology, offering stronger detection capabilities. It features an integrated mitigation management capability that offers public safety entities wider access to mitigation tools. Apart from this, Axon’s Dedrone C2 offers seamless integrations with several third-party sensors and effectors.

AXON has also been focusing on strategic collaborations with other companies to expand its counter-drone capabilities and customer base. Last year, Axon entered into a partnership with TYTAN (a leading provider of interceptor systems for Group 3 drones) to boost detection, identification and mitigation capabilities of counter-drone equipment.

The company is witnessing solid momentum in its Dedrone platform, which experienced robust revenue growth of about 300% year over year in first-quarter 2026. Given the rising global demand for Counter-Unmanned Aircraft Systems (CUAS), Axon is expected to witness strong demand for its Dedrone platform.

Performance of AXON's PeersAmong its major peers, Teledyne Technologies Incorporated’s (TDY - Free Report) Digital Imaging segment’s first-quarter 2026 revenues increased 7.9% year over year to $816.9 million. The jump was due to higher sales of infrared imaging detectors, components and subsystems and surveillance & unmanned air systems. Teledyne generated 52.4% of its total revenues from this segment in the quarter.

Its another peer, Woodward, Inc.’s (WWD - Free Report) Aerospace business segment reported net sales of $703 million in second-quarter fiscal 2026, up 25% year over year. Woodward generated 64.5% of its total sales from this segment in the quarter. The increase in revenues for Woodward’s segment is primarily attributable to broad-based strength across commercial services, commercial OEM and defense OEM.

AXON’s Price Performance, Valuation and EstimatesShares of Axon have gained 17.9% in the past month against the industry’s decline of 1%.

Image Source: Zacks Investment Research

From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 48.92X, above the industry’s average of 46.37X. Axon carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AXON’s 2026 earnings has declined, while the same for 2027 has increased over the past 60 days.

Image Source: Zacks Investment Research

The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Axon Enterprise, Inc. (AXON) Discusses Public Safety Innovation and Customer Perspectives in Webinar Panel Transcript

The Zacks Aerospace-Defense Equipment industry is benefiting from strategic acquisitions and long-term growth in global air travel, which are driving demand for aircraft parts, maintenance services, and aftermarket solutions. While global passenger traffic is expected to grow over the long term, creating opportunities for aerospace suppliers, the industry continues to face significant headwinds, including supply-chain disruptions, labor shortages, higher operating costs, and a global aircraft shortage. These constraints could weigh on near-term growth and profitability across the sector. Some key players from this industry that investors may add to their portfolio are HEICO Corporation (HEI - Free Report) , Axon Enterprise (AXON - Free Report) and AAR Corp. (AIR - Free Report) .

About the Industry The Zacks Aerospace-Defense Equipment industry comprises firms that manufacture various vital components for the aerospace-defense space, ranging from aerostructures, space shuttles, propulsion systems, aircraft engines, defense electronics, missile and radar systems to flight test equipment, structural adhesives, instrumentation and control systems, communication products and many more. Some of these companies also offer integrated simulation and training services to the U.S. defense force. While most revenues are generated from the production of the aforementioned accompaniments, industry players also generate revenues by providing notable aftermarket support and services like maintenance, repair and overhaul activities to aerospace and defense players.

3 Trends Shaping the Future of the Aerospace-Defense Equipment Industry New Mergers and Acquisitions (M&As) Instill Hope: Large companies have traditionally used M&As as a successful strategy to broaden their product offerings. By acquiring other businesses, they can quickly expand their capabilities and stay competitive. In April 2026, AAR completed the acquisition of Aircraft Reconfig Technologies from ZIM Aircraft Cabin Solutions. This adds the FAA Organization Designation Authorization to AAR’s Engineering Services capabilities, which will enable AAR to issue supplemental type certificates and Parts Manufacturer Approval without depending on third parties. In April 2026, TransDigm Group completed the acquisition of Jet Parts Engineering and Victor Sierra Aviation Holdings. This strengthens TransDigm's core aerospace aftermarket business by adding proprietary replacement parts and repair solutions that generate recurring, high-margin revenues. Such consolidations help provide access to a broader range of business models, while improved economies of scale across the sector should support market expansion and revenue growth.

Air Traffic View Boosts Opportunities: According to a report by the International Air Transport Association (“IATA”), global air passenger demand is expected to grow 2.1% year over year in 2026. This marks a significant deceleration from the 5.3% growth recorded in 2025. The Middle East region faces a deep traffic contraction due to strictly closed airspaces, forcing massive traffic rerouting. However, according to IATA’s long-term outlook, global air passenger demand is expected to more than double by 2050, growing at a compound annual growth rate (CAGR) of 3.1% to reach 20.8 trillion Revenue Passenger Kilometers (RPKs). The report also stated that different scenarios are driven by alternative modeling of long-term economic growth, populations, aviation fuel price trends, the global energy transition, and air transport supply-side capacity development. As passenger traffic increases, airlines fly their existing fleets more frequently. This higher utilization accelerates wear and tear on aircraft, engines and components, boosting demand for replacement parts, avionics, landing systems and other equipment.

Supply-Chain Disruption Poses Risks: According to IATA, airlines are facing higher operating costs because supply-chain problems have made spare parts more expensive and harder to obtain. Airport fees, air traffic charges, and aircraft ownership costs have also increased. With new aircraft in short supply, airlines are leasing older, mid-life planes at higher rates. These older aircraft also consume more fuel, further increasing overall expenses. IATA has highlighted that limited aircraft availability and labor shortages remain key supply-side challenges, while broader disruptions continue to delay the timely production and delivery of essential systems.

Per IATA, ongoing disruptions to global supply chains and operational constraints linked to the Middle East conflict are adding pressure to an already tight market, reinforcing the existing aircraft shortage. Aircraft deliveries have fallen well below the level expected if the industry had continued growing at its pre-pandemic pace, creating an estimated shortage of about 5,600 aircraft. The total order backlog reached 18,100 aircraft in May 2026, equal to almost 60% of the active fleet. The reduced pace of jet deliveries and limited availability of materials for aircraft manufacturing may compel OEMs to cut production, potentially weighing on near-term earnings and cash flow across the aerospace and defense equipment industry.

Zacks Industry Rank Reflects Bright Outlook The Zacks Aerospace-Defense Equipment industry is housed within the broader Zacks Aerospace sector. It currently carries a Zacks Industry Rank #55, which places it in the top 22% of more than 247 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Before we present a few aerospace-defense equipment stocks that you may want to add to your portfolio, let’s take a look at the industry’s recent stock market performance and valuation picture.

Industry Beats Sector, Lags S&P 500 The Aerospace-Defense Equipment industry has underperformed the Zacks S&P 500 composite but outperformed the sector over the past year. The stocks in this industry have collectively surged 21% over the past year, while the Aerospace sector has soared 8.5%. The Zacks S&P 500 composite has gained 28.4% in the same time frame.

One-Year Price Performance

Industry's Current Valuation On the basis of trailing 12-month EV/Sales, which is used for valuing capital-intensive stocks like aerospace-defense equipment, the industry is currently trading at 15.06X compared with the S&P 500’s 5.87X and the sector’s 3.33X.

Over the past five years, the industry has traded as high as 15.6X, as low as 6.1X and at the median of 8.39X.

EV-Sales Ratio TTM

3 Aerospace-Defense Equipment Stocks to Buy HEICO: Florida-based HEICO is one of the world’s leading manufacturers of FAA-approved jet engine and aircraft component replacement parts. It also manufactures various types of electronic equipment for the aviation, defense, space, medical, telecommunications and electronics industries. In June 2026, HEICO announced that its Exxelia subsidiary acquired 90% of the ownership of CalRamic Technologies, LLC. The company is expected to benefit by expanding its aerospace and defense electronics portfolio with specialized high-voltage capacitors, supporting future revenue and earnings growth.

The Zacks Consensus Estimate for HEI’s fiscal 2026 sales indicates a 15.8% improvement year over year. The estimate for fiscal 2026 earnings implies 18% year-over-year growth. HEI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

Price & Consensus: HEI

Axon Enterprise: Based in Scottsdale, AZ, Axon develops and manufactures weapons for U.S. state and local governments, the U.S. federal government, international government customers and commercial enterprises. Given the rising global demand for Counter-Unmanned Aircraft Systems (“CUAS”), Axon is also expected to witness strong demand for its Dedrone platform from NATO’s airspace defense agencies. Recently, the company launched Dedrone C2, an upgraded counter-drone platform featuring improved sensor fusion for better drone detection, integrated mitigation management capabilities, and broader compatibility with third-party sensors and countermeasure systems, giving customers a flexible, end-to-end drone defense solution.

The Zacks Consensus Estimate for AXON’s 2026 sales indicates a 31% improvement year over year. The estimate for 2026 earnings implies 18.1% growth year over year. AXON currently carries a Zacks Rank #1.

Price & Consensus: AXON

AAR: Based in Wood Dale, IL, the company provides various products and services to the aviation and defense industries worldwide. AAR's decision to reorganize its business and wind down its Legacy Commercial Programs segment is aimed at improving profitability, cash flow, and returns on capital. The Legacy Commercial Programs business required significant investments in aircraft components and assets while generating relatively low profits, making it less attractive than AAR’s higher-margin businesses. By gradually exiting this segment over the next three to four years and focusing on areas such as parts supply, MRO services, software, and government solutions, AAR expects to simplify its business model, boost margins, free up capital for growth initiatives, and improve overall shareholder returns.

The Zacks Consensus Estimate for AIR’s fiscal 2026 sales indicates a 17.7% improvement year over year. The estimate for 2026 earnings implies 27.1% growth year over year. AIR currently carries a Zacks Rank #2 (Buy).

Price & Consensus: AIR

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

President Trump’s May 2026 OGE Form 278-T disclosure revealed something genuinely unusual in volume, with more than 3,600 individual stock trades in the first quarter of 2026, with heavy concentration in AI infrastructure bought during the March selloff. Executive-branch disclosures report value ranges and dates, not share counts, so any precision beyond brackets like “$1 million to $5 million” is false confidence.

The direction, though, is unambiguous. He bought the dip in NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), and added government-tech names Palantir Technologies (NASDAQ:PLTR) and Axon Enterprise (NASDAQ:AXON).

The NVIDIA trade was the marquee position The standout entry was NVIDIA, with purchases reportedly ranging up to roughly $5 million placed ahead of a Meta chip-deal announcement. The timing window matters. NVDA fell 7.65% between January 2 and March 31, 2026, dropping from $188.62 to $174.20. The fundamentals during that drawdown were not weakening.

Q1 FY27 revenue of $81.615 billion grew 85.23% year-over-year, data center revenue grew 92%, and Jensen Huang described AI factory buildout as “the largest infrastructure expansion in human history.” Buying a 75% gross-margin franchise at a discount was a defensible trade for anyone, not just a sitting president.

AMD and Broadcom completed the silicon basket Both AMD and Broadcom landed in the filings on similar logic. AMD shed 8.97% in Q1 2026, then ripped to 128.08% year-to-date gains by June 11. Broadcom dropped 10.78% over the same Q1 window, from $346.92 to $309.51, before recovering on AI semiconductor strength. The thread connecting all three is custodial.

NVIDIA, AMD, and Broadcom together supply the GPU compute, accelerators, and networking silicon that hyperscalers are committing tens of billions to absorb.

NVIDIA alone disclosed $119.0 billion in total supply-related commitments. When the broader market sold semis in March, it sold the infrastructure beneath an AI capex cycle whose order books were filling, not draining.

Palantir and Axon are policy plays PLTR and AXON sit in a different bucket. Both benefit from federal procurement priorities under the current administration. Palantir on intelligence and defense data integration, Axon on policing and counter-drone systems. Palantir’s Q1 2026 U.S. government revenue grew 84% to $687 million, and CEO Alex Karp noted the company’s Rule of 40 score of 145%, a feat matched only by NVIDIA, Micron and SK hynix.

The thesis hinges on who writes the checks. The FY 2027 defense budget request includes $20.5 billion for cyberspace activities, the procurement pool both companies feed from. That said, PLTR has been the more punished name lately, down 22% year-to-date through June 11, and AXON down 25% over the same stretch.

What the retail investor should actually take from this A presidential disclosure documents what was bought and roughly when, not why, and not whether the buyer intends to hold. The trades cluster around a March dip that any momentum-aware investor would have noticed in real time. Following the trade today means paying post-recovery prices on NVDA and AMD, while PLTR and AXON still sit well below their year-end 2025 marks.

The defensible takeaway is the framework. AI infrastructure leaders bought on weakness, plus government-tech exposure aligned with budget priorities. For a retirement-focused investor, that is a portfolio frame worth borrowing. The framework is worth studying. The entry price is worth your own work.

In the latest close session, Axon Enterprise (AXON - Free Report) was down 1.76% at $435.39. The stock trailed the S&P 500, which registered a daily loss of 0.57%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq decreased by 1.15%.

Prior to today's trading, shares of the maker of stun guns and body cameras had gained 10.98% outpaced the Aerospace sector's gain of 8.09% and the S&P 500's gain of 2.14%.

Market participants will be closely following the financial results of Axon Enterprise in its upcoming release. The company is predicted to post an EPS of $1.91, indicating a 9.91% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $868.35 million, indicating a 29.89% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.09 per share and revenue of $3.64 billion. These totals would mark changes of +18.1% and +30.99%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Axon Enterprise. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate remained stagnant. Axon Enterprise is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Axon Enterprise currently has a Forward P/E ratio of 54.78. This valuation marks a premium compared to its industry average Forward P/E of 38.22.

Meanwhile, AXON's PEG ratio is currently 1.82. 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 average PEG ratio for the Aerospace - Defense Equipment industry stood at 2.24 at the close of the market yesterday.

The Aerospace - Defense Equipment industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 25% of all 250+ industries.

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

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Axon Is About To Explode Higher

Airplane Maintenance Companies That Keep Flights Moving Are Ready to SoarAxon Enterprise NASDAQ: AXON President Josh Isner said the company is seeing growing demand across counter-drone technology, artificial intelligence products, international markets and enterprise security, during a TD Cowen discussion with software analyst Andrew Sherman.

Sherman opened by pointing to Axon’s first-quarter performance and said Dedrone, Axon’s counter-drone business, posted 300% revenue growth, with bookings growth even higher. Isner attributed the momentum to heightened awareness of drone-related security threats amid global conflicts and public safety concerns.

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Dedrone Demand Expands Across Government and Enterprise Markets Axon Surged After Earnings and Is Still Down Over 50% From HighsIsner said governments are increasingly recognizing drone threats and exploring ways to mitigate them. Axon acquired Dedrone about 18 months ago, and Isner said the company has already booked more on that product line than the acquisition price.

He said Dedrone has relevance across federal, enterprise, U.S. state and local, and international markets. Sherman noted the World Cup as one driver of demand, and Isner said Dedrone is securing 11 sites for the event. However, he added that major events occur frequently worldwide and that Axon sees the opportunity as durable rather than tied to a single event.

3 Obscure Sectors Where Institutions Are Quietly Loading Up on SharesUse cases discussed included campuses, executive residences, warehouses, stadiums and data centers. Isner said Axon is “excited to participate” as data center construction accelerates.

In the U.S., Isner said public safety agencies are currently limited in their ability to mitigate drones, because only the federal government can take drones out of the sky. Cities can deploy tracking technology but would need to call in the FAA for mitigation. He said the World Cup marks the first time cities have been given waivers to mitigate drones, and he expects broader permissions could come “as soon as this year or into next year.”

AI Products Gain Traction With Public Safety Agencies Isner described Axon’s AI Era Plan as the company’s “fastest selling product ever,” saying Axon sold almost $1 billion of AI products to police in its first year. He said AI product bookings grew 140% year over year in the first quarter.

A key product is Draft One, which helps generate police reports. Isner said police officers spend about 50% of their time writing reports, and Draft One can reduce that to about 20%, giving officers about a day and a half back each week.

He said the product can help agencies address staffing vacancies and reduce overtime costs by allowing departments to redeploy budget toward efficiency tools. Sherman noted that personnel can account for a large portion of police budgets, and Isner said products that save money from personnel-related budgets are especially valuable to customers.

Bookings, International Growth and Cloud Adoption Asked about bookings growth, Isner said Axon sees a “similar opportunity for growth” this year, though he cautioned that larger deals can make quarterly results less predictable. He said U.S. state and local sales offer strong visibility because purchases often go through city council processes, while federal and international sales can be harder to predict.

Isner said Axon surpassed $1 billion in international bookings last year, compared with about $30 million in international sales when he took over that business in 2016. He said AI is helping drive more cloud adoption internationally, as governments recognize that running AI tools on-premise is not scalable.

He also cited go-to-market investments, better work with systems integrators and acquisitions such as Dedrone and Carbyne as factors helping Axon expand internationally. Isner said Axon has historically been strongest in Commonwealth markets such as the U.K., Canada and Australia, but is now seeing major business in South America, Europe and the Middle East, with activity in Asia and Africa as well.

Enterprise Push Focuses on Body Cameras, Video Aggregation and Counter-Drone Isner said Axon’s enterprise market includes businesses, retailers and logistics companies, rather than public safety agencies. He identified three main enterprise opportunities:

Body cameras for retail workers: Axon Body Mini is scheduled to launch in July, and Isner said the company is already running field trials with some of the largest retailers in the world. Fusus video aggregation: Fusus allows companies to bring disparate video streams from different camera systems into a centralized operations center. Counter-drone security: Axon sees demand for protecting data centers, warehouses, logistics facilities and other valuable assets. Isner said the retail body camera opportunity is tied to reducing shrink and workplace violence. He described a field trial in which a cashier told an aggressive customer that a body camera was being turned on, after which the customer’s behavior changed. He said Axon saw a similar deterrent effect when body cameras were introduced in policing.

He also said body camera footage can support prosecution of theft cases by providing clear evidence. Isner stated that organized crime accounts for much of retail shrink and that body cameras can help deter shoplifters tied to those networks.

Hospitals were also discussed as an enterprise use case. Isner said hospital security forces use Axon products, and that body cameras for nurses in emergency rooms can serve as a deterrent when nurses face abuse or safety concerns.

New Products Include 911, License Plate Readers and Future Hardware Isner discussed Axon’s 911 strategy following the acquisitions of Prepared and Carbyne. He said Prepared operates as a layer on top of existing call-handling systems and offers AI features including transcription, language localization, GPS-based drone dispatch and non-emergency call routing. Carbyne, he said, is a cloud-native call-handling platform that is beginning to win business in major cities.

On automated license plate recognition, Isner said Axon entered a market that already included Motorola’s Vigilant and Flock. He said Axon sees opportunity because of its position as a trusted provider for data and sensitive information, and said the company’s pipeline for the product line is up more than $100 million this year.

Isner also pointed to future hardware opportunities, including next-generation TASER devices, next-generation body cameras, VR sensors, counter-drone products and technology related to police vehicles. He said Axon continues to explore putting TASER technology on drones for SWAT scenarios and, eventually, for responding to mass shootings, though he said significant work remains before such a product could come to market.

Asked what investors may underappreciate, Isner said Axon is sometimes grouped broadly with software companies. He argued that Axon combines software, hardware, regulatory barriers, information security requirements and an established sales channel, positioning the company as a potential winner in AI for public safety.

About Axon Enterprise NASDAQ: AXONAxon Enterprise, Inc develops technology and weapons systems for public safety and law enforcement agencies, combining hardware, software and cloud services. The company's hardware portfolio includes conducted energy weapons (commonly known as TASER devices), body-worn cameras and in-car camera systems. Axon pairs these devices with a suite of connected products and accessories designed to capture, store and manage field evidence.

Beyond hardware, Axon operates a subscription-based software platform for digital evidence management, evidence review and records management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Snowflake (SNOW 1.17%) had a message for software investors last night: Don't give up on software-as-a-service (SaaS) stocks yet.

In a year when software stocks have gotten pummeled over concerns that AI-native products from start-ups like Anthropic could disrupt the leading enterprise software companies, Snowflake, a bellwether in the industry, seemed to dispel the notions of disruption in its first-quarter earnings report as the stock was up 34% on Thursday morning on the results.

Image source: Getty Images.

Snowflake's Q1 Revenue at the data warehousing specialist jumped 33% to $1.39 billion, ahead of estimates at $1.32 billion, and its net revenue retention rate was 126%, showing existing customers are increasing their spending by 26%. It grew remaining performance obligations, a proxy for backlog, by 38% to $9.21 billion, showing strong forward demand. On the bottom line, adjusted earnings per share improved from $0.24 to $0.39, beating the consensus at $0.32.

Snowflake also announced an expanded $6 billion collaboration with AWS to accelerate enterprise AI adoption, and acquired Natoma, a platform for AI agents.

Overall, the results showed that Snowflake isn't slowing down in the AI era, as product revenue accelerated for the second quarter in a row.

The surge in the stock shows how bearish some investors have gotten on the SaaS sector, as Snowflake stock was down roughly 20% year-to-date before the earnings report. Snowflake's post-earnings pop could portend the same from other unfairly beaten-down software stocks. Here are two that could follow in Snowflake's footsteps.

1. Axon Enterprise Axon Enterprise (AXON 2.26%), a law enforcement technology company that makes the TASER electrical weapon, body cameras, and a suite of software for law enforcement agencies to manage their data, jumped 12% on Thursday, seemingly in response to news that the Trump administration is interested in funding drone companies. The gain also comes after Axon announced a new partnership with Echodyne to work on drone applications in law enforcement and homeland security, though there was no response to the news yesterday.

Today's Change

(

-2.26

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-10.09

Current Price

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436.11

Snowflake's surge could have also caused investors to give Axon a second look, as that stock is also beaten-down after falling more than 50% from its peak and down 23% year-to-date, even after today's gains.

Like Snowflake, Axon stock has fallen in spite of continuing strong results, posting revenue growth of 34% in its first quarter, so it seems like a good candidate for a bounce-back if sentiment toward software stocks improves.

The company has a number of competitive advantages selling intergrating hardware and software to its customers, and through organic growth and a series of acquisitions, it's established itself as the clear leader in law enforcement technology.

2. Microsoft Another stock that seemed to catch a tailwind from Snowflake's earnings report was Microsoft (Nasdaq: MSFT), which was up 3% as of 11:44 a.m. ET.

Among the news out on the stock today was that the company is planning to launch a new coding model next week, according to The Information, as it aims to catch up with AI rivals, including Anthropic and further separate itself from OpenAI.

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Like Snowflake and Axon, Microsoft has delivered strong results, even as the stock has gotten snubbed by investors. It's now down more than 20% from its peak last year as investors are concerned about the AI threat to its software business, though its software business continues to grow, and it's delivering brisk growth in its Azure cloud computing division.

Microsoft's AI products like Copilot have generally disappointed investors, but the new coding models could help correct that.

With a market cap of $3 trillion, Microsoft is unlikely to deliver a 34% gain in one session like Snowflake, but there is certainly an opportunity for the company to get back to its peak share price, which would represent a 30% gain, with improving sentiment and continuing growth.

Despite its recent struggles, Microsoft still looks like an AI winner.

Drone stocks just caught a bid after investors reacted to a Wall Street Journal report that the Trump administration is in talks to fund multiple U.S. drone companies tied to the Pentagon’s “Drone Dominance” initiative.

The report tied those talks to the Pentagon’s $1.1 billion Drone Dominance program, which is designed to accelerate the fielding of low-cost, one-way attack drones. Official program materials describe a goal of fielding hundreds of thousands of weaponized drones by 2027, while the Journal reported a 300,000-drone target.

The news sent many drone stocks flying higher as the government signaled demand for drones and a potential willingness to help finance the projects. Unusual Machines (NYSE AMERICAN: UMAC) was the only publicly traded company directly named in the report, but the rally quickly spread to other drone-adjacent stocks. Companies with exposure to drone components, autonomous defense systems, and counter-drone technology also moved higher, like Kratos Defense & Security Solutions NASDAQ: KTOS and Axon Enterprise NASDAQ: AXON.

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Unusual Machines: Trump-Linked Component Maker Pops More Than 50%Unusual Machines Today

UMAC

Unusual Machines

$24.98 -0.74 (-2.88%)

As of 10:34 AM Eastern

52-Week Range$7.24▼

$34.36Price Target$30.00

Unusual Machines stock surged by a whopping 57% in one day after being identified as one of the companies under consideration for the potential funding.

Notably, President Trump’s son, Donald Trump Jr., is a member of Unusual Machine's board of advisors and a shareholder in the small drone component manufacturer. In 2024, shares soared more than 80% the two days following the company's announcement of Donald Trump Jr.’s involvement.

Overall, Unusual Machines shares are now up more than 900% since going public in 2024 and up more than 100% year-to-date (YTD).

Unusual Machines' Q1 2026 earnings report was mixed. Sales of $8.1 million were drastically higher than the $5.5 million analysts expected, resulting in revenue growth of 296% year-over-year (YOY) and the firm’s eighth quarter in a row of record sales. However, the company missed on adjusted earnings per share (EPS) by a wide margin. Its EPS of 21 cents was 15 cents below the analyst estimate.

The company had over $220 million in cash on hand at the end of the first quarter, giving it ample financing runway considering its cash burn of $38 million over the last 12 months. However, an injection of government capital could allow the firm to scale its operations significantly faster.

The analyst consensus price target of $22.33 implies a drop of more than 20%. However, analysts may raise their targets following the company's inclusion in the report. At the same time, it's possible analysts will wait for more information on potential government funding before altering their targets.

Kratos: Autonomous Fighter Jet's Stock SpikesKratos Defense & Security Solutions Today

KTOS

Kratos Defense & Security Solutions

$58.57 -0.21 (-0.36%)

As of 10:54 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$39.00▼

$134.00P/E Ratio343.72

Price Target$98.17

Kratos was not named in the report, but it saw a clear sympathy move, gaining 13.8% as investors looked for broader exposure to the unmanned aerial systems market.

Kratos is not known for traditional “small” drones. bit for developing autonomous fighter jets, including its Valkyrie and Mako systems. Target drones are also a significant part of their business, which customers use to learn how to fight against autonomous targets.

Kratos took the stock market by storm in 2025, rising by 187%. This made Kratos one of the best-performing defense stocks of the year, eclipsing the 174% return of Rocket Lab NASDAQ: RKLB.

However, Kratos shares have come way down in 2026, dropping approximately 50% from its all-time high.

Much of the drop appears tied to the stock getting ahead of itself rather than a clear deterioration in the business. Kratos has handily beaten estimates in its last three earnings reports, but the stock still dropped substantially after each report. Valuation was a major part of the pressure. In mid-January, shares traded at a forward price-to-earnings (P/E) ratio near 183x—a level that is difficult for most stocks to maintain.

While Kratos’s main focus is not on the small units the Drone Dominance initiative emphasizes, the report signals strong government interest in the overall UAS industry. In 2025, 68% of Kratos's revenue came from contracts for which the U.S. government was the final customer.

Axon: Gains 10% as Counter-Drone Demand Gets a Fresh CatalystAxon Enterprise Today

$438.22 -7.98 (-1.79%)

As of 10:54 AM Eastern

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52-Week Range$339.01▼

$885.91P/E Ratio175.26

Price Target$712.75

Axon Enterprise NASDAQ: AXON—best known for its TASER devices, police body cameras, and key software products used by law enforcement—is consistently expanding its offerings, including drones. But it operates on the other side of the equation: providing counter-drones.

Axon was also not named in the report, but the stock rose 12.3% as investors looked beyond drone manufacturers to companies that could benefit from rising demand for drone detection and defense systems.

Axon acquired its Dedrone business in 2024 and saw massive growth from the product in its latest quarter. Counter-drone sales increased by approximately 300% YOY, while bookings rose even faster at 500% YOY. Notably, the Pentagon recently awarded a three-year contract with a $500 million ceiling to counter-drone company Perennial Autonomy, demonstrating interest in counter-drone systems.

Despite this surge, Axon Enterprise shares have faced significant pressure over the past 52 weeks, down over 45% from their high. Like Kratos, valuation was a concern, with Axon trading at a forward P/E ratio as high as 131x in 2025. The large sell-offs seen across the software industry due to fears of artificial intelligence disruption have also affected the stock.

This comes even though hardware continues to make up the majority of the company’s sales. Last quarter, hardware accounted for 56% of sales, up from 44% for software and services, and both segments posted very strong YOY growth of over 30%.

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Axon Enterprise, Inc. (AXON) Presents at 46th Annual William Blair Growth Stock Conference Transcript

It has been about a month since the last earnings report for Axon Enterprise (AXON - Free Report) . Shares have added about 20.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Axon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

AXON Q1 Earnings Miss Estimates on Tariff-Driven MarginsAxon Enterprise reported first-quarter 2026 adjusted earnings of $1.61 per share, up 9.5% year over year. However, the figure missed the Zacks Consensus Estimate of $1.66.

Total revenues were $807.3 million, up 33.7% year over year and ahead of the consensus estimate of $781 million.

Q1 Business Segment PerformanceEffective first-quarter 2025, Axon Enterprise realigned its business segments. The company now reports results under two business segments, namely Connected Devices and Software & Services.

Connected Devices: The segment’s revenues increased 32.8% year over year to $452.8 million, driven by strong demand for TASER 10 devices, Axon Body 4, counter-drone products and fleet systems, along with continued momentum in Platform Solutions. However, the adjusted gross margin decreased year over year to 50.4% from 52.8%.

Software & Services: The segment’s revenues rose 34.9% year over year to $354.5 million, driven by new users and increased adoption of premium software offerings by existing customers. However, the adjusted gross margin decreased to 75.8% from 77.7% in the year-ago period.

Gross Margin Reflects Tariffs and Mix ShiftAxon’s cost of sales increased 38.8% year over year to $330.1 million. Selling, general and administrative expenses were $259 million, up 15.9% year over year.

Total operating expenses climbed 19.6% year over year to $448 million. The adjusted gross margin decreased to 61.6% from 63.6% in the year-ago period, owing to an increase in global tariffs and higher professional services costs.

Balance Sheet & Cash FlowAt the end of first-quarter 2026, Axon Enterprise had cash and cash equivalents of $458.9 million compared with $1.20 billion at December 2025-end. Long-term lease liabilities totaled $97.2 million compared with $98.9 million at 2025-end.

In the first quarter of 2026, the company used net cash of $31.5 million in operating activities against $25.8 million net cash generated in the prior-year period.

Adjusted free cash outflow was $54.1 million in the first quarter of 2026 against an inflow of $2.7 million in the prior-year period.

Axon Raises 2026 Revenue OutlookManagement raised its full-year revenue outlook to 30-32% annual growth, up from 27-30% expected earlier, while maintaining an adjusted EBITDA margin target of approximately 25.5%. The updated view reflects continued momentum across TASER, body-worn cameras, counter-drone, real-time operations and AI-enabled offerings.

Axon Enterprise also expects full-year operating cash flow of more than $600 million and free cash flow of approximately $450 million. Also, capital expenditures are now projected at $160-$190 million, down from the prior $185-$215 million range.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in estimates revision.

VGM ScoresAt this time, Axon has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Axon has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerAxon is part of the Zacks Aerospace - Defense Equipment industry. Over the past month, Mercury Systems (MRCY - Free Report) , a stock from the same industry, has gained 33.8%. The company reported its results for the quarter ended March 2026 more than a month ago.

Mercury Systems reported revenues of $235.76 million in the last reported quarter, representing a year-over-year change of +11.5%. EPS of $0.27 for the same period compares with $0.06 a year ago.

For the current quarter, Mercury Systems is expected to post earnings of $0.44 per share, indicating a change of -6.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Mercury Systems has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.