Axon Enterprise shares have fallen more than 35% from their record closing high of $870.97 set on August 7, 2025, even as the company reported second-quarter revenue rose 35% year over year to a quarterly record of $904 million. The stock, which traded near $17 at the start of 2016, now sits around $553, still representing a gain of over 3,100% over the past decade. Annual recurring revenue reached $1.64 billion, up 39%, and future contracted bookings hit $15.1 billion, a 41% increase. Management raised its full-year 2026 revenue growth forecast to 32% to 34%, its second upward revision this year. The decline is attributed to a valuation reset from elevated multiples, with shares still trading at about 75 times annualized adjusted earnings.
