Axon Enterprise Inc.

Axon Enterprise reported second-quarter 2026 revenue of $904.4 million, up 35.3% year over year and ahead of the Zacks Consensus Estimate of $868.4 million. Adjusted EBITDA margin expanded 110 basis points to 26.8%, helped by strong revenue growth and global tariff refunds, even as cost of sales rose 35.2% to $357.9 million. The company expects a 2026 adjusted EBITDA margin of about 25.5% and targets roughly 28% by 2028 on annual revenues of $6 billion. Shares have gained 25% in the past month, and the stock trades at a forward price-to-earnings ratio of 64.7 times, above the industry average of about 39 times.

Axon Enterprise raised its full-year 2026 revenue growth guidance to a range of 32% to 34%, citing support from US$15.10 billion in future contracted bookings and strong demand across TASER 10, body cameras, and counter-drone technologies. The company reported second-quarter 2026 revenue of US$904.39 million, up from US$668.54 million a year earlier, while quarterly net income eased to US$29.43 million from US$36.12 million and diluted EPS from continuing operations moved to US$0.36 from US$0.44. The upgraded outlook reinforces the Connected Devices growth story as the key near-term catalyst, though rising costs, high debt levels, and a rich valuation remain the most immediate risks.

Axon Enterprise lifted its 2026 revenue growth guidance to a range of 32% to 34% after reporting second-quarter results that exceeded sales estimates but came with margin pressure and an earnings per share miss versus expectations. The raised guidance follows a sharp rebound in the company's share price, with a 7-day return of 14.74% and a 90-day return of 42.77%, though the one-year total shareholder return is down 29.43%. Longer-term holders have still seen substantial gains, with a three-year total shareholder return of 204.08% and a five-year return of 230.08%. The stock last closed at $609.49, while a widely followed narrative pegs fair value closer to $606.83, implying only a small gap yet still framing the stock as overvalued.

Axon Enterprise posted record second-quarter 2026 revenue of $904 million, a 35% year-over-year increase that marks the tenth consecutive quarter of growth above 30%. Software and services revenue rose 36% to $398 million, while connected devices revenue grew 35% to $507 million, driven by Dedrone CounterDrone, Taser 10, and Axon Body 4. Platform solutions revenue surged 123% to $150 million, with Dedrone surpassing $100 million in quarterly revenue. The company raised its full-year revenue guidance to a range of 32% to 34%, up 200 basis points from the prior range, and reported annual recurring revenue of $1.6 billion, up 39%. Adjusted EBITDA reached $242 million, a 26.8% margin, though free cash flow was a negative $1 million due to inventory investments.

Axon Enterprise is showing stronger revenue growth momentum than Chipotle Mexican Grill, based on recent quarterly filings from both S&P 500 companies. Axon posted record revenue of $807.3 million in the first quarter of 2026, marking its ninth consecutive quarter of at least 30% growth, while Chipotle reported $3.3 billion in revenue for the second quarter of 2026, representing 9% growth over the prior year. Axon's expansion has been fueled in part by a more than 700% year-over-year increase in its artificial intelligence products, and the company also finalized a 10-year contract renewal with the Los Angeles Police Department. Chipotle's more moderate growth included a 2% jump in same-store sales, prompting management to raise its comparable store sales guidance. Both stocks have faced downward pressure in 2026, with Axon falling from a 52-week high of $885.92 on valuation concerns and Chipotle declining from a 52-week high of $44.27 before rebounding on its second-quarter results.

Axon Enterprise is expected to beat earnings estimates when it reports results for the quarter ended June 2026 on August 5. The Zacks Consensus Estimate calls for earnings of $1.89 per share, a year-over-year decline of 10.9%, on revenues of $868.35 million, up 29.9%. The Most Accurate Estimate is higher than the consensus, yielding a positive Earnings ESP of +4.76%, which combined with a Zacks Rank of #3 indicates a likely beat. Over the last four quarters, the company has beaten consensus EPS estimates two times.

Axon Enterprise appointed former Dell executive Vivek Mohindra and AI entrepreneur Eiso Kant as independent directors on July 8, 2026. Mohindra joins the Audit and Compensation Committees, while Kant will observe the M&A and Capital Structure Committee. The board refresh brings deep enterprise strategy and AI infrastructure expertise that could influence how Axon develops and governs its public safety technology platform, particularly as it pursues growth in drones and counter-drone solutions amid rising regulatory scrutiny.

Yahoo Finance Executive Editor Brian Sozzi highlights developments at Coinbase, Lyft, and Axon that go beyond the dominant Magnificent Seven stocks. Lyft CEO David Risher said the company is deploying a fleet of robotaxis in markets like Nashville, partnering with Waymo for fleet management, and expanding globally after acquiring FreeNow. Axon founder Rick Smith said the company is close to finalizing its Apollo cartridge, a new Taser designed to outperform a nine-millimeter bullet, with a target release by next winter. Coinbase CEO Brian Armstrong said the platform launched Coinbase for agents, enabling AI tools like Cloud or Codex to execute portfolio rebalancing and other tasks in plain English.

Axon Enterprise has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting an upward trend in earnings estimates. The Zacks Consensus Estimate for the company has increased 15.3% over the past three months, with analysts now expecting earnings of $7.83 per share for the fiscal year ending December 2026. The upgrade places Axon in the top 5% of more than 4,000 Zacks-covered stocks, a group that has historically generated an average annual return of 25% since 1988. The rating change is driven solely by improving earnings estimate revisions, which Zacks research shows are strongly correlated with near-term stock price movements.

MercadoLibre and Axon Enterprise are both trading about 33% below their recent highs, presenting potential long-term opportunities. MercadoLibre, the leading e-commerce and fintech platform in Latin America, reported a 42% year-over-year revenue increase in the first quarter, with unique active buyers growing 26% to 84 million. Axon Enterprise, a leader in public safety technology, saw demand for its AI tools more than double last year, generating over $750 million in bookings, as it shifts to a software-first model. Both companies are expected to grow earnings at annualized rates of 31% and 29%, respectively, over the next several years, supporting their premium forward P/E multiples of 44 and 79.

The Motley Fool highlights Axon Enterprise, Dutch Bros, and MercadoLibre as three magnificent growth stocks to buy in July. Axon's AI-driven law enforcement platform saw 34% revenue growth in the first quarter, with SaaS revenue up 35% and adjusted earnings per share rising to $1.61. Dutch Bros plans to nearly double its store count to 2,029 by 2029, with first-quarter sales growth accelerating to 31% and same-store sales up 8.4%. MercadoLibre reported 49% revenue growth in the first quarter, driven by a 42% increase in gross merchandise volume and a 50% rise in total payment volume, as it leverages AI to expand in underpenetrated Latin American markets.

Brown Advisory's Large-Cap Growth Strategy initiated a new position in Axon Enterprise during the first quarter of 2026, taking advantage of a broader sell-off in software to buy into the public-safety technology company. The strategy noted Axon's strong demand for mission-critical solutions and growing revenue from AI-enabled products like its DraftOne platform. Axon's revenue grew 34% year-over-year to $807 million in the first quarter, and the stock closed at $593.96 per share on July 1, 2026, with a market capitalization of $47.87 billion. The Brown Advisory Large-Cap Growth Strategy declined in the quarter, modestly trailing the Russell 1000 Growth Index, but relative performance improved as the period progressed, with Industrials and Consumer Discretionary contributing positively while Information Technology and Health Care detracted.

Axon co-founder Rich Smith said the company is actively researching drones capable of stopping perpetrators, though such capability is not yet available. Current Axon drones provide situational awareness by flying over scenes, but the ability to physically affect a person is still in development. Smith emphasized that Axon will never make intentionally lethal drones, aligning with the company's mission to find non-lethal alternatives in situations where lethal force might otherwise be used. Axon, originally founded as Air Taser in 1993, has grown into a multibillion-dollar law enforcement technology platform offering body cameras, drones, and other hardware, and completed the $391 million acquisition of counterdrone company Dedrone in October 2024.

Axon Enterprise founder and CEO Rick Smith detailed the company's evolution from a garage startup into a $40 billion public safety technology firm, driven by a mission to make the bullet obsolete. Smith recounted starting the business in 1993 after two friends were shot, leading him to develop the taser with its original inventor, and later pivoting into body cameras and cloud software after early controversies. The company is now working on a new Apollo cartridge designed to penetrate heavy clothing while stopping safely at the skin, which Smith says will outperform a 9mm bullet in speed of incapacitation. Axon is also investing in drones and AI, with its counter-drone detection business growing over 500%, and a future vision of deploying non-lethal taser-equipped drones operated remotely by law enforcement to stop threats without gunfights. Smith emphasized that the company will never make lethal drones, focusing instead on building technology that supports public safety and democratic values.

Axon Enterprise shares have fallen 30% from their August 2025 peak, even as the company reported a more than 700% surge in AI-related revenue. First-quarter revenue grew 34% with 125% net revenue retention, and management raised full-year revenue growth guidance to 30% to 32%. The company’s AI products include Draft One, a generative-AI tool that drafts police reports from body camera footage, and Axon Assistant, a voice companion for real-time translation. Axon also disclosed that President Trump bought between $1 million and $5 million worth of its stock in February, and Immigration and Customs Enforcement solicited a $220 million TASER contract, signaling potential federal growth. The stock trades at a price-to-earnings ratio near 100 on adjusted earnings and a price-to-sales ratio of 15.

President Donald Trump purchased between $1 million and $5 million of Axon Enterprise shares on February 10, according to ethics disclosures filed in May. Two weeks later, on February 24, Immigration and Customs Enforcement posted a notice seeking about 17,800 new tasers under a proposed five-year, $220 million contract, with specifications that three policing experts and procurement reviewers told CNBC match only Axon's Taser 10. The order has not yet been awarded, and no evidence suggests Trump knew of the request or that ICE knew of his stock ownership. The White House stated Trump's holdings are in a trust managed by independent firms and there are no conflicts of interest, while ethics watchdogs expressed concern over the timing. Axon, which controls roughly 90% of the U.S. taser market, reported its ninth straight quarter of revenue growth above 30% and raised its full-year outlook.

Axon Enterprise raised its 2026 revenue growth guidance to approximately 30-32% year over year, up from a prior range of 27-30%, driven by strong performance in its Software & Services segment and the Dedrone counter-drone platform. In the first quarter of 2026, Software & Services revenue rose 35% year over year, fueled by an expanding user base on the Axon network, higher adoption of digital evidence management and new software offerings, and strong demand for premium add-on features. Dedrone platform revenue surged about 300% year over year in the same quarter, and the company recently launched Dedrone C2, an upgraded version with enhanced sensor fusion technology for stronger detection. Axon shares have gained 14.4% in the past month, and the stock carries a Zacks Rank #2, or Buy.

Aerospace and defense stocks delivered a very strong first quarter, with aggregate revenues beating analyst consensus estimates by 2.8% and next-quarter revenue guidance coming in 3.6% above expectations. Axon reported revenues of $807.3 million, up 33.7% year on year and exceeding estimates by 3.7%, while Rocket Lab posted revenues of $200.3 million, a 63.5% increase that beat expectations by 4.9% and delivered the highest guidance raise among its peers. AerSale was the weakest performer, with revenues of $70.61 million falling short of estimates by 18.9%. Ducommun and Howmet also reported beats, with revenues of $209 million and $2.31 billion respectively. Share prices across the group have held steady, rising 3.5% on average since the latest earnings results.

Axon's annual recurring revenue reached $1.49 billion in the latest quarter, with two-year average growth of 37.6%, signaling strong customer commitment to multi-year contracts. The company's operating margin improved by 10.1 percentage points over five years, though it remained breakeven on a trailing 12-month basis. Earnings per share grew at an annual rate of 32.9% over the same period, indicating that incremental sales were profitable. Despite these fundamentals, Axon's stock has declined 9.7% over the past six months to $516.63, underperforming the S&P 500's 6.1% gain, and now trades at 55.6 times forward earnings.

Axon CEO Rick Smith says the company is moving closer to making bullets obsolete, with a redesigned Apollo cartridge that could outperform a nine-millimeter bullet in stopping a threat. Smith explained that the cartridge, announced a year ago, initially failed testing due to issues penetrating clothing, but recent design modifications are testing well and he expects it to be ready by next winter. Axon, originally founded as Air Taser in 1993, has grown into a multibillion-dollar law enforcement technology platform, posting $807 million in first quarter revenue, up 34% year over year. The stock recently gained 10% after disclosures revealed President Trump bought between $1 million and $5 million in Axon shares, ahead of a potential $220 million ICE contract for Taser 10 devices.

Shares of Axon Enterprise jumped 10.5% after reports that President Trump bought the stock ahead of a $220 million TASER contract with Immigration and Customs Enforcement. Trump purchased between $1 million and $5 million in Axon stock on February 10, about two weeks before ICE solicited the five-year deal. The contract does not name Axon directly, but product specifications point to the company. The presidential stake is seen as likely to bring favorable treatment and more federal contracts, especially as defense-tech spending rises. Axon had reported 34% revenue growth in the first quarter, and the stock appears oversold after the broader software sell-off.

Axon Enterprise shares surged 10% after CNBC reported that President Trump bought between $1 million and $5 million in Axon stock on February 10, just two weeks before ICE sought a $220 million Taser contract. The purchase was already disclosed in May federal filings, but the newly revealed timeline raised concerns about potential insider trading. The STOCK Act, passed in 2012 to prevent lawmakers from profiting on nonpublic information, has produced no meaningful legal consequences for politicians in 14 years. Separately, The New York Times reported that Trump's sons took a combined 20% stake in Kaz Resources shortly after the administration secured $1.6 billion in federal financing for the company's tungsten deal, further fueling scrutiny of the intersection between public office and private investments.

Space Exploration Technologies posted a net loss of $4.28 billion in the first quarter of 2026, nearly matching its full-year 2025 loss in a single quarter, and has accumulated $41.3 billion in total losses since its founding. Morningstar's discounted cash flow model places the company's fair value at $63 per share, roughly 59% below where the stock trades today. The xAI division, absorbed in an all-stock deal earlier this year, generated $818 million in revenue against $2.47 billion in operating losses. In contrast, GE Aerospace reported orders of $17.3 billion, up 93% year over year, and revenue of $8.9 billion, up 29%, with a commercial backlog of $190 billion. TransDigm Group continues to compound aftermarket revenue from sole-source components, Howmet Aerospace grew revenue 19% to $2.31 billion with adjusted EPS up 42%, and Axon Enterprise reported revenue of $807 million, up 34%, expanding into drone countermeasures and autonomous surveillance tools.

Axon Enterprise's Dedrone counter-drone platform saw revenue grow approximately 300% year over year in the first quarter of 2026. The company recently launched Dedrone C2, an upgraded platform with enhanced sensor fusion and integrated mitigation management, and has partnered with TYTAN to boost detection and mitigation capabilities. Axon acquired Dedrone in October 2024, strengthening its airspace security offerings for law enforcement. The stock has gained 17.9% in the past month and carries a Zacks Rank of 1, or Strong Buy.

Axon Enterprise has been among the most searched stocks on Zacks.com, with shares returning 16.7% over the past month versus a 1.4% decline for the S&P 500. The company, which makes stun guns and body cameras, is expected to post earnings of $1.91 per share for the current quarter, down 9.9% from a year ago, while full-year earnings are projected at $8.09 per share, up 18.1%. Revenue estimates point to $868.35 million for the current quarter, a 29.9% increase, and $3.64 billion for the fiscal year, up 31%. Axon carries a Zacks Rank #1, or Strong Buy, though its valuation grade is F, indicating it trades at a premium to peers.

NAPC Defense announced it will debut its newly developed Taser 10 CornerShot configuration at the 2026 National Association of School Resource Officers National School Safety Conference in Reno, Nevada, taking place June 28 through 30. The new platform combines the CornerShot system's around-the-corner observation and engagement capabilities with Axon's Taser 10 technology, offering a non-lethal alternative for law enforcement, school resource officers, correctional personnel, and private security professionals. The company will showcase three CornerShot configurations at Booth 814, including the standard tactical CornerShot USA, the compact Scorpion CornerShot, and the new Taser 10 CornerShot. A special 20% discount off standard pricing will apply to all new CornerShot and Scorpion orders placed during the conference. NAPC Defense will also host a shareholder, investor, and industry meet and greet on June 30 from 3:00 p.m. to 5:00 p.m. PDT at the Atlantis Casino Resort Spa.

Zacks Equity Research identifies HEICO Corp., Axon Enterprise, and AAR Corp. as key aerospace-defense equipment stocks poised to benefit from long-term air travel growth and strategic acquisitions. The Zacks Aerospace-Defense Equipment industry carries a Zacks Industry Rank of 55, placing it in the top 22% of more than 247 industries, and has collectively surged 21% over the past year. HEICO, a Zacks Rank #1 Strong Buy, is expected to see fiscal 2026 sales and earnings grow 15.8% and 18% year over year, respectively, aided by its Exxelia subsidiary's acquisition of 90% of CalRamic Technologies. Axon Enterprise, also a Zacks Rank #1, is projected to achieve 31% sales growth and 18.1% earnings growth in 2026, driven by demand for its Dedrone counter-drone platform. AAR Corp., a Zacks Rank #2 Buy, anticipates fiscal 2026 sales and earnings increases of 17.7% and 27.1%, respectively, as it winds down its Legacy Commercial Programs segment to focus on higher-margin businesses.

US stock futures pointed lower on Wednesday, with E-mini S&P 500 contracts down about 1.5% and Nasdaq-100 futures weaker by more than 2.7%, as investors weighed the prospect of a Federal Reserve rate hike in September and soft global growth. The US 10-year Treasury yield sat near 4.5%, raising borrowing costs for households and businesses, while Europe's latest purchasing manager indexes showed services activity shrinking and manufacturing only edging ahead. Among individual movers, Axon Enterprise surged 5.61%, GE HealthCare Technologies gained 5.08% after RBC initiated coverage with an Outperform rating, and International Business Machines climbed 5.04% following an upgrade to Overweight. On the losing side, Sandisk declined 13.64%, Micron Technology fell 13.18% ahead of its closely watched earnings report, and Vertiv Holdings dropped 11.07% as recent gains in data center cooling stocks reversed. Key events on the radar include Micron's Q3 results, NVIDIA's Annual General Meeting, and Paychex's Q4 numbers, all on Wednesday, with the Fed rate path focus centering on PCE data and 10-year yields through Friday.

Axon Enterprise is a more attractive investment than Kratos Defense & Security Solutions, according to a Zacks Investment Research analysis, citing stronger growth momentum, a cheaper valuation, and fewer operational headwinds. Axon’s first-quarter 2026 revenue surged, with its Connected Devices segment up 33% year over year and Software & Services up 35%, driven by TASER 10, Axon Body 4, and counter-drone equipment. The company raised its full-year 2026 revenue growth guidance to 30-32% and trades at a forward price-to-earnings ratio of 45.45 times. Kratos Defense also posted solid first-quarter results, with Unmanned Systems revenue rising to $82.6 million and Kratos Government Solutions reaching $288.4 million, but the firm faces supply-chain disruptions and cost pressures, and its stock trades at a much higher 63.23 times forward earnings. Zacks ranks Axon a Strong Buy and Kratos a Hold.

Axon Enterprise reported first-quarter 2026 revenue of $807 million, a 34% increase year-over-year, driven by a 35% rise in Software & Services revenue and a 33% increase in Connected Devices. The company raised its full-year revenue growth outlook to 30%–32%. AI product revenue grew over 700% compared to last year, with innovations including Axon Vision, Axon Guardian, and Axon Assistant, which has surpassed one million uses. Axon is also seeing rapid adoption of its counter-drone technologies, supported by the federal Safer Skies Act, and is expanding into judicial workflow tools like Brief One and AI Case Compass.

StockStory recommends Axon as a long-term industrial buy while advising investors to sell Lucid and Martin Marietta Materials. Axon, which provides body cameras and tasers for first responders, is highlighted for its 37.6% average annual recurring revenue growth over two years and 26.6% annual earnings per share growth. Lucid is flagged for its negative 136% gross margin and cash-burning history, while Martin Marietta Materials faces declining sales and flat earnings. Axon trades at 50.6 times forward earnings, Lucid at 0.7 times forward sales, and Martin Marietta at 30 times forward earnings.

Telefónica has moved from a reactive to a proactive in-home broadband support model by integrating real-time analytics from AXON Networks. AXON’s algorithms now process data from more than 6 million devices in Brazil and over 5.6 million devices in Spain, giving Telefónica end-to-end visibility into home Wi-Fi performance. The operator uses a composed Wi-Fi Customer Experience Index to prioritize improvements at the household level and has seen significant gains in operational efficiency and customer satisfaction. The partnership, now in its fifth year, leverages parts of the AXON Orchestrator cloud-native system to feed intelligent diagnostics directly into Telefónica’s maintenance and customer support systems in Spain.