Track market-moving stories before they get noisy

Axon Enterprise, Inc. (NASDAQ:AXON) shares are trading sideways Wednesday. They have found support at an important price level. They may even be about to reverse and head higher. This is why we have made Axon the Stock of the Day.

Successful traders understand market dynamics and principles. One is that certain price levels matter more than others.

As you can see on the chart, the $505 level has been important for Axon. Over the past year, it has served as both support and resistance.

In March 2025, the stock was trending lower. More shares were for sale than being bought. Sellers were forced to undercut each other to attract buyers. This forced the shares into a downtrend.

When they reached the $505 level, the buyers came out of the woodwork. Sellers could sell all they wanted to without pushing the price lower.

After the shares rallied, some of those who sold decided their decision was a mistake. Some decided to buy their shares back if they could do so at their selling price.

When the shares dropped back to $505 in July 2025, they placed buy orders. These orders created support.

After support broke, many people who bought shares at it regretted doing so. Some decided to exit their positions at breakeven if possible. When the shares rallied back to $505 in June, they placed sell orders. These orders created resistance.

Now this important level is support again.

When the resistance at $505 broke, some people who sold there regretted it and decided to buy their shares back if they could get them at the same price they sold them for.

Now that Axon is back to $505, they are placing buy orders. They have created support.

Good traders know some price levels matter more than others. Axon’s chart shows a clear example of this.

Image: Shutterstock

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Axon Enterprise, Inc. (AXON) Presents at Goldman Sachs Communacopia + Technology Conference 2026 Transcript

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Axon Enterprise (AXON - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Axon currently has an average brokerage recommendation (ABR) of 1.38, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 20 brokerage firms. An ABR of 1.38 approximates between Strong Buy and Buy.

Of the 20 recommendations that derive the current ABR, 14 are Strong Buy and four are Buy. Strong Buy and Buy respectively account for 70% and 20% of all recommendations.

Brokerage Recommendation Trends for AXON

Check price target & stock forecast for Axon here>>>

While the ABR calls for buying Axon, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is AXON Worth Investing In?In terms of earnings estimate revisions for Axon, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $7.88.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Axon. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Axon.

It has been about a month since the last earnings report for Axon Enterprise (AXON - Free Report) . Shares have added about 3% in that time frame, outperforming the S&P 500.

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 catalysts.

Axon Q2 Earnings Miss Estimates Despite Strong Software and Device GrowthAxon reported second-quarter 2026 adjusted earnings of $1.88 per share, down 13.8% year over year. The figure missed the Zacks Consensus Estimate of $1.89 by 0.5%.

Total revenues were $904.4 million, up 35.3% year over year and ahead of the consensus estimate of $868.4 million by 4.2%.

Q2 Business Segment PerformanceEffective first-quarter 2025, Axon realigned its business segments. The company now reports results under two segments, namely Connected Devices and Software & Services.

Connected Devices: The segment’s revenues increased 34.6% year over year to $506.6 million, driven by strong demand for Dedrone, TASER 10 and Axon Body 4. The adjusted gross margin expanded to 53.4% from 51.1% in the year-ago quarter, primarily aided by tariff refunds, partly offset by a higher mix of Dedrone revenues.

Software & Services: The segment’s revenues rose 36.2% year over year to $397.8 million, supported by new users and increased adoption of premium software offerings, including Axon Fusus, the AI Era Plan and Axon 911. However, the adjusted gross margin decreased to 75.1% from 78.9% in the prior-year quarter, reflecting a higher mix of professional services revenues and investments in newer offerings.

Margin ProfileAxon’s cost of sales increased 35.2% year over year to $357.9 million. Selling, general and administrative expenses were $291 million, while research and development expenses totaled $209 million.

The adjusted gross margin decreased to 62.9% from 63.3% in the year-ago period. A higher mix of professional services revenues and the scaling of newer products more than offset the benefits from global tariff refunds.

Balance Sheet & Cash FlowAt the end of second-quarter 2026, Axon had cash and cash equivalents of $597.7 million compared with $1.20 billion at December 2025-end. Long-term lease liabilities totaled $101.7 million compared with $98.9 million at 2025-end.

In the first six months of 2026, the company used net cash of $11.4 million in operating activities compared with $65.9 million used in the prior-year period. Adjusted free cash outflow was $54.8 million in the first six months of 2026 compared with $108 million in the prior-year period.

Axon Raises 2026 Revenue OutlookManagement raised its full-year revenue outlook to 32-34% annual growth, up from 30-32% expected earlier, while maintaining an adjusted EBITDA margin target of approximately 25.5%. The updated view reflects continued momentum across the company’s connected devices and software offerings.

Axon also maintained its capital expenditure projection at $160-$190 million.

How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted 5.71% due to these changes.

VGM ScoresCurrently, Axon has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

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

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Axon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

The Nasdaq Composite (^IXIC -1.03%) fell 1.03% to 26,100, the Dow Jones Industrial Average (^DJI -0.79%) dropped 0.79% to 52,767, and the S&P 500 (^GSPC -0.71%) slipped 0.70% to 7,633 as tech weakness and rising yields pressured benchmarks.

Today's biggest movesCybersecurity firms Palo Alto Networks (PANW -5.24%) and CrowdStrike Holdings (CRWD -6.90%) weighed on the software sector following recent financial results, as technology stocks led the day's declines.

Meanwhile, traders at Goldman Sachs Group (GS -1.80%) are noting increased investor nervousness and cautious risk allocations as global markets contend with escalating tensions in the Middle East.

What this means for investorsFollowing the U.S. launching new strikes on Iran on Tuesday, markets took a risk-off stance as crude oil surged 5% and Treasury yields kept creeping higher. These higher yields and increased market volatility weighed heavily on tech and growth stock names today, as evidenced by the S&P 500's biggest loser: Axon Enterprise (AXON -8.52%), which slid 9%.

On the other side of the spectrum, Moderna (MRNA +9.93%) continued its incredible run, jumping 10% today, as it receives analyst upgrades following the historic announcement of a potential cancer vaccine two weeks ago. In addition to Moderna, value stocks held up better today, as shown by the Invesco S&P 500 Low Volatility ETF (SPLV -0.20%) declining 0.2% versus the Invesco S&P 500 High Beta ETF's (SPHB -2.12%) drop of 2.1%.

Elsewhere, Tim Cook shifted from CEO to Executive Chair at Apple (AAPL +2.61%) today, as hardware chief John Ternus took over as the top banana at the $4.6 trillion behemoth.

Josh Kohn-Lindquist has positions in Axon Enterprise and CrowdStrike. The Motley Fool has positions in and recommends Apple, Axon Enterprise, CrowdStrike, Goldman Sachs Group, and Moderna. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.

1.9.2026 22:06

Americké akciové indexy uzavřely úvodní seanci nového měsíce v negativním teritoriu v čele s technologickým Nasdaqem, který odepsal více než 1 %. Širší index S&P500 ztratil přes 0,7 % a tradiční index Dow Jones bezmála 0,8 % na pozadí zvýšeného geopolitického napětí na Blízkém východě, posunující cenu ropy (+5,6 %) nad hladinu 90 USD/barel. Vedle akcií se nedařilo ani dluhopisům, které oslabily napříč splatnostmi. Výnos 10letého vládního bondu končil téměř na úrovni 4,8 % (vs. 4,76 % včera). Ztrátový den vykázaly také drahé kovy. Zlato odepsalo 2,7 % se závěrem na 4328 USD/oz, stříbro pak o 3,6 % na 64,1 USD/oz.

Závěrečné hodnoty:

Dow Jones -0,79 % na 52767,59 b.
S&P 500 -0,71 % na 7631,54 b.
Nasdaq Composite -1,03 % na 26099,77 b.

Index S&P 500 -0,71 % na 7631,54 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,5 % Zbytná spotřeba -1,9 % Utility +0,8 % Průmysl -1,4 % Zdravotní péče +0,7 % Základní materiály -1,4 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Moderna (MRNA) +9,9 % Axon Enterprise (AXON) -8,5 % Edison International (EIX) +8,9 % Cadence Design Systems (CDNS) -7,6 % PG&E Corp (PCG) +6,0 % Interactive Brokers Group (IBKR) -7,1 % HP (HPQ) +4,3 % Crowdstrike Holdings (CRWD) -6,9 % CF Industries Holdings (CF) +4,3 % Dell Technologies (DELL) -6,9 %
David Lamač
Fio banka, a.s.
Prohlášení

Key Takeaways Teledyne is the better current pick, supported by stronger gains, lower valuation and rising EPS estimates.Axon's Connected Devices and Software & Services revenues rose more than 34% year over year in Q2 2026.Teledyne's $5B backlog, 1.23 book-to-bill and defense-aerospace demand support its growth outlook. Axon Enterprise, Inc. (AXON - Free Report) and Teledyne Technologies Incorporated (TDY - Free Report) are two familiar names operating in the aerospace and defense equipment industry. As rivals, both companies are engaged in manufacturing highly engineered public security and digital imaging solutions across the global markets.

Both companies have been enjoying significant growth opportunities in the public safety and surveillance industries on account of growing instances of terrorism and criminal activities across the world. Let’s take a closer look at their fundamentals, growth prospects and challenges.

The Case for AxonThe strongest driver of Axon’s business at the moment is the persistent strength in its Connected Devices segment. Strong demand for its next-generation TASER 10 products, counter-drone equipment and advanced body-worn camera, Axon Body 4, supports the segment’s growth. With upgraded features such as a bi-directional communications facility and a point-of-view camera module option, Axon Body 4 is generating significant demand. Segmental revenues surged 34.6% year over year in the second quarter of 2026, following an increase of 33% in the first quarter.

In the second quarter, revenues from the company’s TASER product line increased 20.9% year over year, driven by TASER 10, while those from the Platform Solutions product line soared 122.6%, supported by counter-drone, virtual reality and fleet. Also, revenues from Personal Sensors grew 2.8%, led by Axon Body 4.

The company is also witnessing solid momentum in its Software & Services segment. After witnessing year-over-year 35% growth in revenues in the first quarter, revenues from the segment soared 36.2% in the second quarter. Higher adoption of its premium software offerings, including Axon Fusus, the AI Era Plan and Axon 911, and solid demand for premium add-on features are driving the segment’s growth.

The company is also strengthening its position in the counter-drone space with the growing capabilities of its Dedrone offerings and Artificial Intelligence (AI)-powered command-and-control platform. After witnessing year-over-year growth of 300% in the first quarter, revenues from the Dedrone platform surpassed $100 million in the second quarter.

On the flip side, escalating costs and expenses are a concern for Axon’s margins and profitability. In second-quarter 2026, its cost of sales and SG&A expenses increased 35.2% and 20.1%, respectively, year over year. Adjusted gross margin declined 40 basis points year over year to 62.9%. Axon expects third-quarter adjusted EBITDA margin to absorb higher memory costs without the benefit of tariff refunds before margins scale in the fourth quarter.

Also, Axon had $1.75 billion of senior notes outstanding at the end of the second quarter of 2026, while cash equivalents and short-term investments were $685 million and net debt was about $1.1 billion.

The Case for TeledyneTeledyne is witnessing strong demand from the defense sector globally, driven by rising regional defense spending. The company is benefiting from robust demand for technologies like infrared imaging, machine vision, sensors, surveillance equipment and autonomous-system electronics.

A favorable macroeconomic environment and the current U.S. administration’s inclination toward increased defense spending, with the nation being the largest weapons exporter, have been aiding growth. Teledyne’s engineered systems for space applications and broad range of end-to-end undersea interconnect solutions for naval defense should significantly bolster revenues.

A steady rebound in commercial air travel continues to serve as a key growth driver for Teledyne, which supplies onboard avionics systems and ground-based applications for commercial aircraft. Per the International Air Transport Association’s (IATA) June 2026 outlook, the demand for air travel is expected to rise 2.1% in 2026, measured in Revenue Passenger Kilometers, leading to a strong aftermarket for components.

During the second quarter of 2026, Teledyne recorded higher commercial aerospace aftermarket sales, while Original Equipment Manufacturer orders for 2026 deliveries also remained strong. Exiting the second quarter, Teledyne had a backlog of around $5 billion and recorded a book-to-bill of 1.23. Sales from the Aerospace and Defense Electronics segment rose 8.2% year over year, fueled by higher sales of defense electronics and aerospace electronics.

The company continues to strengthen its portfolio with strategic acquisitions. In January 2026, Teledyne acquired DD-Scientific Holdings Limited and its subsidiary DD-Scientific Limited. The acquisition of DD-Scientific fits well with Teledyne’s long-term strategy of adding differentiated sensing and electronics businesses with strong technology content.

However, TDY experienced supply-chain challenges, including increased lead times, as well as cost inflation for parts and components, logistics and labor due to availability constraints and high demand in the recent past. This might continue to delay the company’s ability to convert backlog to revenues and negatively impact its profit margin.

Price Performance
Image Source: Zacks Investment Research

In the year-to-date period, Axon shares have risen 5.2%, while Teledyne stock has gained 22.4%.

The Zacks Consensus Estimate for AXON & TDYThe Zacks Consensus Estimate for AXON’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 33.4% and 15%, respectively. However, the EPS estimates for 2026 and 2027 have decreased over the past 60 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for TDY’s 2026 sales implies growth of 7.4% year over year, while the EPS estimate indicates an increase of 12.3%. TDY’s EPS estimates have been trending northward for both 2026 and 2027 over the past 60 days.

Image Source: Zacks Investment Research

Teledyne’s Valuation More Attractive Than AxonTeledyne is trading at a forward 12-month price-to-earnings ratio of 23.94X, while Axon’s forward earnings multiple sits much higher at 62.73X.

Image Source: Zacks Investment Research

ConclusionAxon’s strong momentum across operational segments and growing presence in the counter-drone space have been dented by rising expenses and a high debt level, which might affect its margins and performance. Also, AXON’s expensive valuation warrants a cautious approach for existing investors.

In contrast, Teledyne’s growth prospects remain solid, backed by enhanced U.S. defense funding and solid projections for commercial air travel. Additionally, TDY’s attractive valuation is more appealing and its upwardly revised earnings estimates instill confidence. Given these factors, TDY seems to be a better pick for investors than AXON currently. While TDY currently carries a Zacks Rank #2 (Buy), AXON has a Zacks Rank #3 (Hold).

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

Jeffrey C. Kunins, CPO & CTO of Axon Enterprise, Inc. (AXON -1.71%), sold 9,605 shares of common stock on Aug. 21, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueShares sold9,605Transaction value~$6.0 millionPost-transaction shares (directly held)97,761Post-transaction shares (indirectly held)86,268Post-transaction value$115.52 millionTransaction value based on SEC Form 4 weighted average sale price ($626.70); post-transaction value based on Aug. 21, 2026, market close ($627.75).

Key questionsWhat governed the timing of this transaction?
The sale was executed under a Rule 10b5-1 trading plan adopted on May 22, 2026, which allows corporate insiders to schedule trades in advance to mitigate concerns regarding material non-public information.What was the specific source of the shares sold?
The 9,605 shares disposed of in this transaction were originally issued to the reporting owner upon the settlement of vested restricted stock units as part of his equity compensation.What is the structure of the remaining holdings?
Following the sale, Jeffrey C. Kunins retains a total of ~184,000 shares, with approximately 47% of that position held indirectly through an LLC of which he is the sole member.How has the stock performed leading up to this filing?
As of the Aug. 21, 2026, transaction date, Axon Enterprise has seen a 1-year return of -18%, with shares priced at $627.75 at the market close.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$627.75Market Capitalization$50.6 billionRevenue (TTM)$3.2 billionNet Income (TTM)$199.6 millionCompany SnapshotAxon Enterprise specializes in the development, production, and sale of conducted energy devices (CEDs) marketed under the TASER brand, as well as complementary software and sensor solutions for law enforcement and security applications.The company operates through two primary business segments -- TASER devices and Software and Sensors -- generating revenue through direct sales to domestic and international law enforcement agencies, government entities, and security professionals.Axon's primary customers include federal, state, and local law enforcement agencies, as well as international government and security organizations seeking advanced non-lethal force and situational awareness technologies.Axon Enterprise, founded in 1993 and headquartered in Scottsdale, Arizona, is a market-leading provider of conducted energy weapons and integrated software platforms serving the global law enforcement and public safety sectors. With approximately 5,100 employees and TTM revenues of $3.2 billion, the company maintains a dominant position in the non-lethal force technology market through continuous innovation and strategic expansion of its product ecosystem. Axon's competitive advantage derives from its established brand recognition, proprietary technology, recurring software revenue streams, and deep relationships with government procurement channels.

What this transaction means for investorsWhile the size of CPO Kunins' $6 million sale is certainly notable, it doesn't appear to be anything more than a part of a pre-scheduled trading plan. It doesn't look like Kunins was trying to time AXON stock but was instead just raising cash, as is typical for insiders. Furthermore, on a relative basis, the sale was pretty small compared to the rest of the CPO's holdings, so this shouldn't be a big deal for investors.

As for Axon Enterprise's actual operations, the company continues to fire on all cylinders. Sales rose 34% in the last quarter, marking the company's ninth-straight quarter of 30% or higher growth. The company's backlog also grew 44%, and Axon's young counter-drone business saw sales more than quadruple.

That said, AXON stock still trades at 80 times forward earnings, and its stock-based compensation continues to climb. Over the last decade, Axon's share count has risen by 5% annually, so investors should be wary that if sales growth slows and this stock-based compensation persists, it could be a double negative that weighs on AXON stock. However, we are yet to see anything remotely resembling a slowdown or even a crack in Axon's dominant leadership positioning in its niche, so I'm happy to keep holding my AXON stock and adding on any pullbacks.

Bamco Inc. NY acquired a new stake in shares of Axon Enterprise, Inc (NASDAQ:AXON – Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 153,615 shares of the biotechnology company’s stock, valued at approximately $86,118,000. Bamco Inc. NY owned about 0.19% of Axon Enterprise at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. boosted its holdings in shares of Axon Enterprise by 4.3% in the second quarter. BlackRock Inc. now owns 8,334,551 shares of the biotechnology company’s stock worth $4,672,432,000 after acquiring an additional 345,365 shares during the period. Geode Capital Management LLC raised its stake 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 valued at $1,265,657,000 after purchasing an additional 35,544 shares during the period. Sands Capital Management LLC lifted its holdings in Axon Enterprise by 11.6% during the 4th quarter. Sands Capital Management LLC now owns 1,609,436 shares of the biotechnology company’s stock worth $914,047,000 after purchasing an additional 167,095 shares in the last quarter. Wellington Management Group LLP lifted its holdings in Axon Enterprise by 326.9% during the 4th quarter. Wellington Management Group LLP now owns 1,539,738 shares of the biotechnology company’s stock worth $874,463,000 after purchasing an additional 1,179,038 shares in the last quarter. Finally, Edgewood Management LLC bought a new position in Axon Enterprise in the 4th quarter worth about $846,516,000. Hedge funds and other institutional investors own 79.08% of the company’s stock.

Axon Enterprise Price Performance Shares of AXON stock opened at $607.48 on Thursday. The business’s fifty day moving average is $553.45 and its 200 day moving average is $480.77. The company has a quick ratio of 1.80, a current ratio of 2.15 and a debt-to-equity ratio of 0.47. The stock has a market cap of $49.35 billion, a price-to-earnings ratio of 252.07, a PEG ratio of 9.95 and a beta of 1.39. Axon Enterprise, Inc has a twelve month low of $339.01 and a twelve month high of $794.29.

Axon Enterprise (NASDAQ:AXON – Get Free Report) last released its earnings results on Tuesday, August 4th. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.84 by $0.04. Axon Enterprise had a net margin of 6.19% and a return on equity of 2.84%. The firm had revenue of $904.39 million during the quarter, compared to analyst estimates of $876.42 million. During the same period last year, the business earned $2.12 earnings per share. The business’s revenue was up 35.3% on a year-over-year basis. Research analysts expect that Axon Enterprise, Inc will post 2.04 EPS for the current fiscal year. Insider Transactions at Axon Enterprise In other news, insider Elizabeth Reid Coughlin sold 1,554 shares of the firm’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $485.00, for a total transaction of $753,690.00. Following the sale, the insider owned 34,024 shares of the company’s stock, valued at $16,501,640. This trade represents a 4.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Patrick W. Smith sold 20,000 shares of Axon Enterprise stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $500.00, for a total transaction of $10,000,000.00. Following the completion of the sale, the chief executive officer owned 3,060,997 shares of the company’s stock, valued at $1,530,498,500. This represents a 0.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 76,594 shares of company stock valued at $41,236,386. Insiders own 4.20% of the company’s stock.

Analyst Upgrades and Downgrades AXON has been the topic of several recent analyst reports. Citizens Jmp reiterated a “market outperform” rating and issued a $700.00 target price on shares of Axon Enterprise in a research note on Thursday, June 25th. Morgan Stanley increased their price objective on Axon Enterprise from $600.00 to $640.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Needham & Company LLC reissued a “buy” rating on shares of Axon Enterprise in a research note on Thursday, August 6th. Royal Bank Of Canada restated an “outperform” rating on shares of Axon Enterprise in a research report on Tuesday, July 21st. Finally, Piper Sandler raised their price target on Axon Enterprise from $724.00 to $732.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Thirteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Axon Enterprise currently has an average rating of “Moderate Buy” and a consensus target price of $730.92.

View Our Latest Research Report on Axon Enterprise

(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.

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Bank of New York Mellon Corp boosted its holdings in shares of Axon Enterprise, Inc (NASDAQ:AXON – Free Report) by 3.1% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 730,899 shares of the biotechnology company’s stock after purchasing an additional 22,068 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.91% of Axon Enterprise worth $409,750,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the business. Vanguard Group Inc. raised its position in shares of Axon Enterprise by 0.6% during the 4th 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 boosted its holdings in Axon Enterprise by 1.6% in 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. Sands Capital Management LLC increased its stake in Axon Enterprise by 11.6% during 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 in the last quarter. Wellington Management Group LLP increased its stake in Axon Enterprise by 326.9% during the 4th quarter. Wellington Management Group LLP now owns 1,539,738 shares of the biotechnology company’s stock worth $874,463,000 after buying an additional 1,179,038 shares in the last quarter. Finally, Edgewood Management LLC acquired a new position in shares of Axon Enterprise during the fourth quarter valued at approximately $846,516,000. 79.08% of the stock is owned by institutional investors and hedge funds.

Axon Enterprise Price Performance Axon Enterprise stock opened at $627.75 on Friday. The company’s 50 day simple moving average is $543.11 and its 200-day simple moving average is $476.87. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.80 and a current ratio of 2.15. Axon Enterprise, Inc has a 1 year low of $339.01 and a 1 year high of $794.29. The company has a market capitalization of $51.00 billion, a price-to-earnings ratio of 260.48, a price-to-earnings-growth ratio of 9.97 and a beta of 1.39.

Axon Enterprise (NASDAQ:AXON – Get Free Report) last posted its earnings results on Tuesday, August 4th. The biotechnology company reported $1.88 earnings per share for the quarter, beating the consensus estimate of $1.84 by $0.04. The firm had revenue of $904.39 million during the quarter, compared to the consensus estimate of $876.42 million. Axon Enterprise had a net margin of 6.19% and a return on equity of 2.84%. The firm’s revenue for the quarter was up 35.3% on a year-over-year basis. During the same quarter last year, the firm earned $2.12 EPS. As a group, equities research analysts expect that Axon Enterprise, Inc will post 2.04 earnings per share for the current year. Insider Activity at Axon Enterprise In related news, CEO Patrick W. Smith sold 9,930 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $548.77, for a total transaction of $5,449,286.10. Following the sale, the chief executive officer directly owned 3,031,067 shares in the company, valued at approximately $1,663,358,637.59. This represents a 0.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Elizabeth Reid Coughlin sold 1,554 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $485.00, for a total transaction of $753,690.00. Following the completion of the sale, the insider directly owned 34,024 shares in the company, valued at approximately $16,501,640. This represents a 4.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 66,989 shares of company stock worth $35,216,932 over the last 90 days. 4.20% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes Several equities analysts have recently weighed in on AXON shares. Zacks Research downgraded Axon Enterprise from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 10th. Barclays boosted their price target on Axon Enterprise from $523.00 to $688.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Needham & Company LLC restated a “buy” rating on shares of Axon Enterprise in a report on Thursday, August 6th. TD Cowen reaffirmed a “buy” rating on shares of Axon Enterprise in a research note on Wednesday, July 22nd. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Axon Enterprise in a report on Wednesday, August 5th. Thirteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $730.92.

View Our Latest Report on AXON

Axon Enterprise 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.

See Also Five stocks we like better than Axon Enterprise Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? 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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I want to walk you through a scenario every investor has lived through. You wake up, check your portfolio, and the market is having a good day.

The Dow is up 250 points!

Stock A is up 1.5%. Nice pick. Stock B is up 3.3%. Even better, what a beast!

Then there's Stock C, down 10% and falling fast!

What the heck happened?

Markets Love to Sell the News

You check the news and find out Stock C actually beat earnings estimates. Revenue was fine, guidance was good, and yet the stock is getting crushed.

So why is Stock C punished while the rest of your portfolio celebrates?

This happens more often than most investors realize, and this earnings season is hitting the pattern harder than usual.

A stock runs up for weeks or months heading into its print, and expectations build. Then the company delivers a genuinely good quarter, sometimes even a great one, and the stock sells off anyway. Not because the business is falling apart, but because the good news was already baked into the price before the report ever came out.

Why "Good" Isn't Always Good Enough

Stocks don't trade on results in isolation. They trade on the gap between results and what was already expected.

If a stock has rallied 30% or 40% into an earnings date, the bar isn't "beat the consensus estimate"; it's "beat what everyone assumed you'd beat the consensus by." That's a much higher bar, and it's an invisible one, because it's not written down anywhere.

I saw a clean example of this recently with Axon Enterprise (AXON). The company offered a textbook case of sell-the-news turning into buy-the-dip. The stock ran from $400 to $620 heading into its Q2 report, then dropped to $520 despite results that were anything but disappointing. Revenue came in at $904.4 million versus $868 million expected, annual recurring revenue hit $1.6 billion, up 39% year over year, and the company raised full-year revenue growth guidance to 32-34% from 30-32%. The only blemish was a two-cent EPS miss, $1.88 versus a $1.89 estimate. This was more than enough for algorithms and momentum traders to hit sell given how far the stock had already run.

But the fundamentals never wavered, and the stock reclaimed all of that pullback and pushed above $630 in a matter of days.

Watch For the Patterns, Take Advantage

A sell-off like AXON is a pattern to watch for all earnings season. A beat driven by real revenue growth and raised guidance tends to get rewarded, even if the stock has already run. A beat driven by cost-cutting into a shrinking top line, especially after a big run-up, tends to get sold, even when the per-share number looks great on the surface.

There are other reasons a stock can drop on seemingly good news too. It could be straightforward profit-taking after a long run. It could be cautious forward guidance overshadowing a clean quarter. It could be a single disappointing detail buried in the conference call, like a margin comment or a customer concentration issue.

In today's markets, computer programs can read a headline and execute trades faster than any human can finish reading the press release, and that speed can create moves that have very little to do with the actual health of the business.

It's hard for humans to win the speed game. But with patience and a little discipline, investors can take advantage of the irrational moves the computer traders create in the process.

Continue . . .

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The Clue Is in the Zacks Rank

Here's where I want to focus on the opportunity side of this, because a sell-the-news drop after a strong quarter isn't automatically a red flag.

Often, it's the setup.

When I see a stock get hit hard after a beat, the very first thing I check is the Zacks Rank and what's happening with the estimates. If a company just posted strong results and analysts are responding by raising their numbers, but the stock is falling anyway, that disconnect is the clue.

Why would the people with direct access to management and the deepest knowledge of the business be getting more bullish, while the stock price is getting hammered? Usually, it means the drop has more to do with positioning, algorithmic selling, or a crowded trade unwinding than it does with any real deterioration in the fundamentals.

A stock holding a Zacks Rank #1 (Strong Buy) or #2 (Buy) into and immediately after a sell-the-news reaction is telling you something important. The underlying research, driven by earnings estimate revisions, one of the most powerful predictors of future stock performance, hasn't turned.

The market's emotional reaction and the analyst community's fundamental view are pointing in two different directions, and historically, it's the estimate trend that tends to win out over time.

How To Trade It

Once we confirm the fundamentals are intact, it’s time to follow a simple process before putting money to work:

1) Check the Zacks Rank and estimate revisions first. Analysts should be raising numbers, not cutting them, in the days following the report. If the Rank is strong and revisions are moving higher while the stock is moving lower, that's the signal worth acting on.

2) Confirm technical support. Fundamentals get me interested, but the chart tells me when to act. Watch for the stock to find support at a moving average, a prior breakout level, or a trend line that's held up over time. When computer and human traders alike watch the same level, and it holds, that confirms buyers are stepping in rather than stepping away.

3) Set your entry, target, and stop loss before you buy, not after. Getting in at a good price takes patience, and it's tempting to chase a stock the moment it looks like it's bottoming. Have a plan. Know what price you're targeting for an exit, and just as importantly, know where you'll cut the trade if the thesis breaks down. Capital preservation always comes first. Don't fall in love with a stock just because the estimates looked good on paper.

The Takeaway

A stock's reaction to its own earnings report is data in itself. It's the market synthesizing thousands of opinions, algorithms, and emotions in real time, and it doesn't always get it right in the first hours or days after the print.

This earnings season has been full of examples where great numbers met a wall of selling simply because expectations had already run too far ahead of reality.

The good news is that this creates a repeatable setup for patient investors. Learning to separate a real warning sign from a crowded trade unwinding is one of the most valuable skills you can build as an investor, and the clues are usually right there in the estimate revisions and the Zacks Rank.

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August 21, 2026 Investing demands patience, and every so often, there's a week that makes the case for sitting still and doing nothing. On Wednesday, a stock that had disappointed since its COVID pandemic boom days came roaring back on the news of its medical breakthrough, finally rewarding investors. Elsewhere, three businesses we've recommended kept growing their leads by advancing the strategies we believed in. And earnings season marches on, with Nvidia (NVDA -0.33%) taking its turn in the spotlight next week.

1. Moderna Doubles on a Cancer-Vaccine First

Source: Image created by Jester AI.

Moderna's (MRNA -23.55%) COVID vaccine made a fortune, then orders dried up and the shares drifted for years. Then, on Wednesday, the stock jumped 177% on news of a clinical trial breakthrough. It gave back some gains on Thursday and closed at $133, still double where the week began, though far below its pandemic-era peak.

Moderna, a recommendation in Hidden Gems and Rule Breakers, makes medicines from mRNA, the same technology as its COVID shot. Its cancer vaccine candidate is built for each patient from their own tumor, then administered with Merck's (MRK -2.11%) drug Keytruda.

A first in cancer medicine. The trial enrolled 1,137 melanoma patients whose tumors had been surgically removed. Those given the candidate with Keytruda saw cancer return less often than patients on Keytruda alone. The companies did not release specific figures, so we know it worked but not by how much. An earlier, smaller study showed a 49% lower risk of recurrence or death. Why one trial repriced the whole company. The approach can potentially target many cancers. Moderna is already testing it against lung, kidney, and bladder cancers. First comes FDA, then longevity evidence. The partners' next regulatory step is to file with the Food and Drug Administration (FDA), and CEO Stéphane Bancel thinks approval could happen in 2027. This week's data showed the drug candidate delays cancer's return; whether patients live longer will be answered in late 2029. 2. Disney Details Its $60 Billion Parks Investment Ask most people what Disney (DIS +0.36%) is, and they'll say "movies." But if you follow the money instead, it's experiences that rake in the most profit. Its parks, cruises, and resorts brought in nearly $10 billion last quarter, up 10% from a year earlier, with 3% more people coming, each spending 4% more once inside. That's where Disney, a Stock Advisor recommendation, earns its keep.

Where the $60 billion goes. Disney pledged that money to its parks back in 2023. At its D23 fan convention last weekend, management finally showed the plans: new lands built around Marvel's Avengers, Disney villains, and Pixar's Monsters, Inc. Anyone can build a roller coaster. Nobody else has Snow White, Spider-Man, and Simba under one roof. Comcast (CMCSA +1.10%) spends freely on its Universal parks in Orlando and still reported thinner crowds. Parents don't book Disney trips for a new ride. They book because their kid loves a character they loved first. Its intellectual property is what keeps prices rising and the parks full.

3. Retail Trend Reverses

For years, Walmart (WMT -9.15%) was retail's safe bet and Target (TGT +1.26%) the turnaround project. This week they traded places. Target hit a 52-week high after raising its forecast while Walmart fell 8% in a day.

Target sales at established stores climbed 3.8%, past the 2.4% expected. A $752 million tariff refund flattered the quarter, but strip it out and management still raised its full-year forecast. Target's new CEO Michael Fiddelke, who took over in February, is off to a good start. Home Depot's (HD -2.85%) established stores had their best quarter in nearly four years for this Dividend Investor recommendation. Management reaffirmed its outlook rather than raising it, blaming a housing market where nobody's moving. It spent most of a $730 million tariff refund holding prices down. TJX (TJX -2.64%), parent of T.J. Maxx and Marshalls, grew sales 4% but guided to just 2% to 3% next quarter. Earnings per share rose 24%; back out the refund and it's 11%. Walmart raised its full-year outlook. But sales at established U.S. stores grew just 2.6%, the slowest since 2020, and its guidance for this quarter landed light. Management plans to use its tariff refund to lower prices.

4. Three Bargains and a Breakout

If you own these three Fool recommendations, this week you were reminded why you bought them.

Comfort Systems (FIX -1.36%) installs heating and cooling systems, which sounds unglamorous until you consider that AI data centers run hot and someone has to move that heat. Team Hidden Gems recommended it in March 2025 at $355 and it's up nearly 5X, to $1,674 today. TransMedics (TMDX -3.32%) built a system that keeps donated hearts, livers, and lungs alive and working outside the body, so more of them survive the trip to a patient. Both Teams have recommended it more than 30 times collectively since 2019, and it's up roughly 289% from that first recommendation. Axon Enterprise (AXON -4.87%) makes the Tasers, body cameras, and software used by more than 18,000 law enforcement agencies worldwide. Team Rule Breakers first recommended it in 2004. The stock sank to $339 this spring and trades around $614 today. Revenue grew 35% from a year ago. 5. Amazon Owns Its Drones. Uber Borrows. Your next takeout order might arrive from the sky. Two of our recommendations are chasing that, and they've picked opposite routes.

Amazon, (AMZN -2.15%) recommended by both Teams, is expanding its Prime Air drone service to nearly 500 U.S. towns by year-end, six times its current reach. Amazon builds the drones and flies them from its own warehouses. Uber, (UBER +0.65%) a Rule Breakers recommendation, doesn't want to own aircraft any more than it wanted to own cars. It's putting partner Zipline's drones inside the Uber Eats app, aiming for a million deliveries a day by 2029. Alphabet (GOOG -1.02%) beat them both, with more than a million deliveries using its own Wing drones already flown for Walmart and DoorDash (DASH +0.00%). Owning the drones costs Amazon more but gives it control over every flight. Uber pays less upfront and gets instant reach. Neither earns a profit on drone delivery yet, which makes this an interesting divergence worth following.

6. Week Ahead: Nvidia Headlines Tech Earnings

Four big tech players report next week: CrowdStrike, (CRWD -5.60%) Salesforce, (CRM +0.20%), Okta (OKTA -4.99%), and Nvidia, which takes the stage Wednesday afternoon. No company's earnings say more about how the AI boom is holding up than Nvidia.

The company has been trimming its own risk. Nvidia agreed to help finance a giant OpenAI data center campus in Ohio, then cut back how much it would guarantee, from an initial $250 billion down to roughly $105 billion. Nvidia isn't retreating from AI. It's deciding how much of someone else's risk to carry. What we'll be watching: Nvidia sells the chips and helps finance the buyers, so its forecast is the clearest read on AI spending. Is it still accelerating, or leveling off as investors push for returns? We've recommended Nvidia more than 30 times across our services, and our analysts will break down its quarterly results for members. 7. Your Take Moderna's shareholders waited years for positive returns. What company are you still holding for a payoff that hasn't arrived?

Debate with friends and family, or become a member to hear what your fellow Fools are saying!

Read Next

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Key Takeaways Axon's Software & Services revenues rose 36.2% to $398 million in the second quarter.Growth was driven by new users and adoption of Axon Fusus, the AI Era Plan and Axon 911.Axon raised its 2026 revenue growth outlook to 32-34% from 30-32% previously. Axon Enterprise, Inc. (AXON - Free Report) is witnessing strong momentum in its Software & Services segment.  After witnessing a year-over-year 35% jump in revenues in first-quarter 2026, revenues from the segment increased 36.2% to $398 million in the second quarter.

The results were driven by an increase in the number of new users and increased adoption of premium software offerings, including Axon Fusus, the AI Era Plan and Axon 911. Existing customers are consistently returning to purchase additional services, reflecting strong customer satisfaction and engagement. This ongoing expansion supports a growing base of annual recurring revenue (ARR).

However, the segment’s gross margin declined 430 basis points (bps) to 71.3% from the year-ago figure. Also, the adjusted gross margin fell 380 bps to 75.1%. The declines primarily reflected a greater mix of professional services revenues and the introduction of new products. Nevertheless, its software-only gross margin remained above 80%. The company’s focus on effective cost management and revenue growth is expected to improve its margin performance.

Strong customer alignment, increased adoption across sectors and continuous product innovation led Axon to issue bullish guidance for 2026. The company currently expects total revenues to increase approximately 32-34% year over year compared with 30-32% guided earlier.

Segment Performance of AXON's PeersAmong its major peers, Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) Government Solutions segment’s second-quarter 2026 revenues amounted to $379.7 million compared with $278.3 million in the year-ago quarter. Higher sales of Kratos’ Defense and Rocket Support, Turbine Technologies, Microwave Products and Training and Cyber units aided the results. Kratos Defense derived 82.8% of its total revenues from this segment during the quarter.

Its another peer, Woodward, Inc.’s (WWD - Free Report) Industrial business segment reported net sales of $401 million in the third quarter of fiscal 2026, up 26% year over year. Woodward generated 36.1% of its total sales from this segment in the quarter. The revenue growth for Woodward’s Industrial business segment was driven by higher demand for power generation equipment and services, along with favorable conditions in marine transportation and steady investment in parts of oil and gas.

AXON’s Price Performance, Valuation and EstimatesShares of Axon have gained 37% in the past six months against the industry’s decline of 2.6%.

Image Source: Zacks Investment Research

From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 63.76X, above the industry’s average of 42.03X. Axon carries a Value Score of F.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AXON’s 2026 earnings has inched down 0.6% 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.

AMI Asset Management Corp purchased a new position in Axon Enterprise, Inc (NASDAQ: AXON) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 104,067 shares of the biotechnology company's stock, valued at approximately $58,341,000. Axon Enterprise accounts for

Explore the exciting world of Axon (AXON +2.64%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
*Stock prices used were the prices of Jun. 17, 2026. The video was published on Aug. 13, 2026.

Anand Chokkavelu has positions in Axon Enterprise. Dan Caplinger has positions in Axon Enterprise. Rick Munarriz has positions in Axon Enterprise. The Motley Fool has positions in and recommends Axon Enterprise. The Motley Fool has a disclosure policy.

Axon's strong Q2 revenue growth and raised outlook support its long-term prospects, but high costs, debt and valuation temper near-term appeal.

Shares of Axon Enterprise, Inc. (NASDAQ:AXON), our Stock of the Day, are consolidating on Wednesday. They have been in a strong uptrend. But the rally may end or pause around the $637 level.

As you can see on the chart below, this is a resistance level.

“Sell at former tops” remains an old Wall Street adage. It’s evident on the Axon chart.

$637 was a top or resistance in January. When the shares trended lower after this, a number of the investors and traders who bought at the top regretted doing so.

Some of them decided to hold onto their losing positions. But they also decided that if they could eventually do so, they would exit or sell at breakeven.

Because of this, when the shares rallied back to $637 in early July, they placed sell orders. There were enough of these orders to create resistance at the level again.

A similar dynamic is occurring now.

People who bought shares in early July are selling at their buying price. These orders have created resistance at the level again.

Sometimes, stocks sell off after reaching resistance. This was the case the last two times Axon reached $637, and it could happen again.

Stocks sell off resistance when some of the traders and investors whose sell orders created the resistance become anxious and impatient.

They worry that other sellers are willing to sell their shares at a discount. They know this is where the buyers will go.

As a result, they reduce their offer prices. Other anxious and impatient sellers see this and do the same thing. This can result in a snowball effect that forces the shares into a downtrend.

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Axon Enterprise has evolved into a public safety operating system, with AI Era and Dedrone driving rapid growth and diversification. Q2 2026 saw 35% revenue growth, 39% ARR growth to $1.6B, and future contracted bookings reaching $15.1B, but valuation remains demanding. I maintain a Hold rating: at $571, AXON trades at 54x 2027E and 41x 2028E earnings, with FCF yield under 1% and high SBC-driven dilution.

Posted by Defense World Staff on Aug 9th, 2026

Arista Wealth Management LLC bought a new position in shares of Axon Enterprise, Inc (NASDAQ:AXON – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 1,101 shares of the biotechnology company’s stock, valued at approximately $617,000.

Several other hedge funds have also modified their holdings of the business. Brighton Jones LLC acquired a new stake in shares of Axon Enterprise in the fourth quarter valued at about $480,000. NewEdge Advisors LLC lifted its position in shares of Axon Enterprise by 41.1% during the 1st quarter. NewEdge Advisors LLC now owns 2,294 shares of the biotechnology company’s stock valued at $1,207,000 after acquiring an additional 668 shares during the period. Empowered Funds LLC boosted its stake in shares of Axon Enterprise by 8.4% during the 1st quarter. Empowered Funds LLC now owns 2,028 shares of the biotechnology company’s stock worth $1,067,000 after acquiring an additional 157 shares in the last quarter. Woodline Partners LP boosted its stake in shares of Axon Enterprise by 40.6% during the 1st quarter. Woodline Partners LP now owns 6,932 shares of the biotechnology company’s stock worth $3,646,000 after acquiring an additional 2,003 shares in the last quarter. Finally, Sivia Capital Partners LLC acquired a new stake in shares of Axon Enterprise in the 2nd quarter worth approximately $284,000. 79.08% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Axon Enterprise In related news, CEO Patrick W. Smith sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $643.79, for a total transaction of $6,437,900.00. Following the sale, the chief executive officer owned 3,040,997 shares in the company, valued at approximately $1,957,763,458.63. This trade represents a 0.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Elizabeth Reid Coughlin sold 1,554 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $485.00, for a total transaction of $753,690.00. Following the sale, the insider owned 34,024 shares in the company, valued at approximately $16,501,640. This trade represents a 4.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 58,989 shares of company stock valued at $30,527,983. Corporate insiders own 4.20% of the company’s stock.

Axon Enterprise News Summary Here are the key news stories impacting Axon Enterprise this week:

Positive Sentiment: Strong Q2 growth and higher outlook: Axon reported second-quarter revenue of approximately $904 million, up 35% year over year and above analyst expectations. The company raised its 2026 revenue-growth forecast to 32%–34%, citing record bookings, international expansion and demand for its connected devices and software. Axon Beat Estimates and Raised Guidance, Shares Dropped Positive Sentiment: AI and Dedrone momentum: AI Era revenue, including Draft One automated police-report software, grew nearly 700% from a year earlier. Dedrone counter-drone revenue exceeded $100 million, supported by deployments at all 11 World Cup sites, strengthening Axon’s long-term growth narrative. Axon Stock Falls After AI, Drone Wins Fuel Q2 Earnings Beat Positive Sentiment: Analyst and retail support: UBS raised its price target to $600 while maintaining a Neutral rating, and retail traders showed interest in buying the post-earnings pullback. William Blair also reiterated a Buy rating, highlighting recurring-revenue growth, counter-drone demand and Axon’s expanding AI platform. UBS Raises Axon Price Target Neutral Sentiment: Valuation remains elevated: Axon’s rapid share-price recovery has increased scrutiny of its valuation. Some analysis considers the stock expensive on discounted cash flow and only fairly valued on sales multiples, potentially limiting further gains unless growth remains strong. Axon Stock Could Be Overvalued Negative Sentiment: Margins and cash flow pressured the initial reaction: Software gross margin declined to 71.3% from 75.6%, while a greater mix of professional services, memory costs and investments in new products reduced profitability. Free cash flow also turned negative, and quarterly EPS was reported as slightly below some consensus estimates, prompting an initial post-earnings selloff. Axon Posts Lower Quarterly Gross Margin Axon Enterprise Stock Up 9.3% Shares of NASDAQ:AXON opened at $571.01 on Friday. The company has a quick ratio of 1.93, a current ratio of 2.15 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $46.02 billion, a P/E ratio of 236.93, a P/E/G ratio of 11.65 and a beta of 1.39. Axon Enterprise, Inc has a 52-week low of $339.01 and a 52-week high of $878.62. The stock’s fifty day simple moving average is $513.80 and its 200-day simple moving average is $474.59.

Axon Enterprise (NASDAQ:AXON – Get Free Report) last announced its earnings results on Tuesday, August 4th. The biotechnology company reported $1.88 earnings per share for the quarter, beating the consensus estimate of $1.84 by $0.04. Axon Enterprise had a net margin of 6.19% and a return on equity of 2.84%. The firm had revenue of $904.39 million during the quarter, compared to the consensus estimate of $876.42 million. During the same quarter in the previous year, the company posted $2.12 EPS. The firm’s revenue for the quarter was up 35.3% on a year-over-year basis. As a group, equities research analysts forecast that Axon Enterprise, Inc will post 1.63 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth AXON has been the subject of several research analyst reports. JPMorgan Chase & Co. raised their price objective on Axon Enterprise from $750.00 to $755.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. The Goldman Sachs Group reiterated a “buy” rating and set a $715.00 target price on shares of Axon Enterprise in a research report on Thursday. Weiss Ratings reissued a “hold (c-)” rating on shares of Axon Enterprise in a report on Wednesday. UBS Group raised their price target on Axon Enterprise from $440.00 to $600.00 and gave the company a “neutral” rating in a research report on Thursday. Finally, Morgan Stanley lifted their price target on Axon Enterprise from $600.00 to $640.00 and gave the stock an “overweight” rating in a research note on Thursday. Thirteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $730.92.

Read Our Latest Report on AXON

About Axon Enterprise (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.

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Ten years ago, Axon Enterprise (AXON +9.29%) was a small-cap company best known for its TASER stun guns. A share cost about $17 when 2016 began. As of this writing, the price is near $553 -- a gain of more than 3,100%, enough to turn a $10,000 investment into about $329,000.

The recent chapter looks nothing like that, though. The stock sits more than 35% below the record closing high of $870.97 it set on Aug. 7, 2025 (almost exactly one year ago). Since that peak, shares have traded as low as $339.01.

And the stock slid again this week after the company's second-quarter report, even with the business still growing 35%.

So, has something actually changed at the company -- or just at the price? I lean toward the second answer.

Image source: Getty Images.

Where the decade of gains came from Axon's 33-fold run wasn't luck. Over the past decade, the company turned itself from a weapons manufacturer into something closer to a software company for public safety. It still sells TASER devices, but it pairs them, along with its body cameras and drones, with subscription software for storing footage and managing digital evidence.

The second quarter showed that model working. Revenue rose 35% year over year to $904 million, a quarterly record, and the growth was nearly identical on both sides of the business: Software and services revenue climbed 36% to $398 million, while connected devices grew 35% to $507 million. Growth even accelerated a touch from the first quarter's 34% pace, making this the company's 10th consecutive quarter of revenue growth above 30%. Annual recurring revenue, the subscription base underneath it all, reached $1.64 billion, up 39% year over year. And customers already under contract represent $15.1 billion in future bookings, up 41% from a year earlier. That's more than four times the revenue the company is on pace to produce this year.

Existing customers keep spending more, too. Net revenue retention came in at 126%, meaning that base is spending 26% more on Axon's software than it was a year ago.

Management also lifted its full-year forecast, its second raise this year. Axon now expects 2026 revenue growth of 32% to 34%, up from the 30% to 32% it guided in May and the 27% to 30% it started the year with. In short, the business arguably looks healthier than the stock chart.

What the sell-off is actually about The slide has less to do with the business than with the price the stock reached last summer. Even after a year of declines, shares cost about 75 times the company's adjusted earnings from the past quarter, annualized. A stock priced that way can get punished for small disappointments, and the second-quarter report contained one.

Adjusted gross margin slipped to 62.9%, down slightly from a year earlier, as lower-margin professional services and newly scaled products made up more of sales.

Profitability is also thinner than the headline numbers suggest. On a generally accepted accounting principles (GAAP) basis, second-quarter net income was just $29 million against an adjusted figure of $155 million.

Still, a margin dip driven by mix is a footnote next to 35% growth. To me, the bigger issue was always the multiple, and a year of a falling stock price set against a growing business has been working that problem down.

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So, does the decade-long case still hold? I think it does. The formula that produced the 33-fold return (recurring software revenue attached to hardware that police departments replace on a schedule) is growing faster than the company as a whole, and contracted bookings stretch years into the future.

Zoom out, and the past year looks like the valuation resetting, not the business.

Of course, a multiple like this one still leaves no room for a true slowdown, and if growth ever cools toward 20%, the stock could fall a long way from here. What would change my mind is growth stepping below 30% while the margin keeps slipping. Neither happened this quarter.

The price is the part that requires patience. Axon remains an expensive growth stock even after the decline, and I wouldn't rush in all at once. But for the first time in about a year, the price looks like a reasonable place to start.

Key Takeaways Axon raised its 2026 revenue growth outlook to 32%-34%, citing first-half results and the demand pipeline.Software & Services revenues rose 36% to $398M in Q2, while AI Era Plan revenues jumped nearly 700%.Future contracted bookings rose 41% to $15.1B, while five-year normalized bookings grew over 30%. Axon Enterprise, Inc. (AXON - Free Report) used its second-quarter 2026 earnings call to raise its full-year revenue outlook, citing broad demand across public safety, international, federal and enterprise markets.

The call also showed where execution risks remain. Newer businesses are expanding rapidly, but memory costs, product mix and inventory investment are shaping near-term margins and cash flow.

AXON’s second-quarter non-GAAP EPS of $1.88 missed the Zacks Consensus Estimate by 1 cent. However, revenues of $904.39 million topped the $868.35 million estimate.

AXON Raises the 2026 Revenue BarCOO and CFO Brittany Bagley said Axon now expects 2026 revenue growth of 32% to 34%, up from 30% to 32%, supported by first-half results and the demand pipeline.

Management expects the fourth quarter to be the strongest period for revenues and year-over-year growth. The full-year adjusted EBITDA margin outlook remains approximately 25.5%.

Bagley said third-quarter margins will absorb higher memory costs without another tariff-refund benefit before scaling back in the fourth quarter.

Axon's Software Expansion BroadensSoftware & Services revenues rose 36% to $398 million in the second quarter. More than one-third came from offerings beyond Axon Evidence, and that group grew about 70%.

AI Era Plan revenues increased nearly 700%. Annual recurring revenues rose 39% to $1.6 billion, while net revenue retention reached 126%.

President Joshua Isner told a TD Cowen analyst that international AI demand was driven by Draft One's expansion into more markets and Axon Assistant's real-time translation capabilities.

AXON Sees Dedrone Demand Beyond the World CupDedrone surpassed $100 million in quarterly revenues after supporting all 11 U.S. World Cup stadiums and more than 50 additional sites.

Responding to a Goldman Sachs analyst, Isner said the event should not define the business. He emphasized international, federal and enterprise demand, while noting that large hardware shipments can create quarterly variability.

Founder and CEO Patrick Smith described a partner-led counter-drone strategy. Chief product officer and CTO Jeffrey Kunins said Axon intends to lead in software and sensor fusion while selectively owning critical hardware.

Axon's Bookings Mix Changes the LensFuture contracted bookings rose 41% to $15.1 billion, and five-year normalized bookings increased more than 30%. Management introduced the measure as shorter enterprise and international contracts become more significant.

A Baird analyst asked why the disclosure was changing. Isner said three-year enterprise deals and large international contracts can distort comparisons when years six through 10 are included.

Bagley clarified that shorter contracts are not increased to five years. Contracts longer than five years are reduced to a common five-year basis, while shorter bookings remain unchanged.

AXON Makes Trust Central to AI AdoptionA Morgan Stanley analyst asked where customers still resist AI. Smith acknowledged concerns around privacy, data security and misuse of license-plate-reader information.

Smith said Axon is developing AI tools to detect anomalous search behavior and framed customer trust as a valuable but fragile business asset.

Kunins said AI investment is centered on faster responses, officer time savings and direct improvements in officer and community safety. Management maintained that AI should support, not replace, human judgment.

Axon's Body Camera and 911 Pipeline BuildsIsner expects third-quarter body camera shipments to rise 20% to 30% sequentially and leaned toward the high end. He said public-safety wins, renewals, expansions and customer returns from competitors are the main drivers.

Responding to JPMorgan and RBC analysts, Isner said Axon Body Mini is generating enterprise trials but is not the primary shipment driver. He tied body-camera winbacks to product fundamentals and connected Evidence.com workflows.

Isner also said customers are actively seeking 911 alternatives. Axon's first full-scope customer will deploy the combined Prepared and Carbyne offering, while other agencies may adopt either component first.

AXON Keeps Focus on Ecosystem ExecutionManagement's tone remained confident on second-half demand, with international and enterprise bookings each roughly tripling and normalized bookings expected to grow in the 30% range for 2026.

The company is also prioritizing supply-chain resilience, inventory investment and rapid scaling of new offerings that pressure product mix. The call framed these demands as part of building a broader hardware, software, cloud and AI platform.

Axon's Zacks Signals Remain RestrainedAXON currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term estimate-revision signal. Its Value Score, Growth Score, Momentum Score and VGM Score are all F, the weakest grade in the A-to-F framework.

The combination lacks the favorable Rank-and-Style alignment associated with Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks carrying A or B scores. The Zacks Rank can change as analysts revise estimates after the newly reported results.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Revenue: $904 million, up 35% year over year, marking the 10th consecutive quarter of growth above 30%.Software and Services Revenue: Increased 36% year over ye

Axon Enterprise (AXON +0.38%) stepped up to deliver its second-quarter earnings report after hours on Wednesday and reported another smash hit.

Revenue growth topped 30% for the tenth quarter in a row, coming in at 35% to reach $904 million, which was well ahead of estimates at $876.5 million.

The law enforcement technology company, which is best known for the TASER electrical weapon, delivered strong top-line growth across the board, with TASER revenue up 21% to $261.3 million. Platform solutions jumped 123% to $149.8 million, driven by strong growth in its drone business, and software and services revenue was up 36% to $397.8 million, including 700% growth in the AI Era plan, a subscription service for Axon's AI tools.

On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 40% to $242 million, and adjusted earnings per share came in at $1.88, ahead of estimates of $1.84. Axon also reported generally accepted accounting principles (GAAP) EPS of $0.29.

In addition to the strong quarterly results, Axon also lifted its full-year revenue guidance, calling for growth of 32%-34% compared to an earlier range of 30%-32%. It maintained adjusted EBITDA margin guidance of 25.5%.

Beating estimates and raising guidance is typically the kind of quarter that leads to a stock surging; however, that wasn't the case for Axon. The stock rose briefly in the after-hours period, but within minutes it turned red, falling as much as 9% during the session.

So what's the rub here? Let's dig a little deeper.

Image source: Axon.

Why Axon's report wasn't good enough Axon is facing a number of structural headwinds that make it harder for the stock to move higher on a strong earnings report alone.

First, it's expensive, trading at a price-to-sales ratio of around 15 and a price-to-earnings ratio of close to 100 based on adjusted earnings. That ratio is much higher when using GAAP earnings.

As a software company, Axon has also been under pressure from the "SaaSpocalypse," though software-as-a-service (SaaS) stocks have bounced back from earlier lows. Axon is much less vulnerable to disruption from AI-native platforms like Anthropic than enterprise SaaS companies, but the AI revolution has led investors to reevaluate the sector.

With high-priced stocks, investors often want to see a flawless earnings report, and some numbers were moving in the wrong direction.

Axon reported a decline in adjusted gross margin from 63.3% to 62.9%, and adjusted gross margin in software and services fell from 78.9% to 75.1%, due to a higher mix of professional services revenue and the scaling of new product offerings.

The company also withdrew its operating cash flow and free cash flow guidance without explanation, after previously guiding to $600 million and $450 million in those categories, respectively. That likely spooked investors.

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The after-hours sell-off may not hold in regular trading tomorrow, but if it does, that's all the more reason to buy the stock.

Axon dominates its niche of law enforcement technology and has grown both organically, by updating its product line and expanding its customer base, and through acquisitions, such as Dedrone, which has provided the foundation for its drone business.

The company is growing and innovating in AI as the 700% AI Era plan growth shows, and it looks squarely focused on the future.

There's still a long growth runway for Axon, and while the valuation may be expensive, it's worth paying for a company with a wide network of competitive advantages, and that's consistently growing at 30% or more.