Axon Enterprise (NASDAQ:AXON) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Axon Enterprise (NASDAQ:AXON) issued its quarterly earnings data on Wednesday, May 6th. The biotechnology company reported $1.61 earnings per share for the quarter, topping analysts’ consensus estimates of $1.60 by $0.01, FiscalAI reports. Axon Enterprise had a return on equity of 3.78% and a net margin of 6.90%.The firm had revenue of $807.35 million during the quarter, compared to analysts’ expectations of $778.90 million. During the same period in the prior year, the business posted $1.47 EPS. The firm’s quarterly revenue was up 33.7% on a year-over-year basis.

Here are the key takeaways from Axon Enterprise’s conference call:

• Q1 revenue of $807 million was up 34% YoY (ninth consecutive quarter >30% growth); management raised 2026 revenue guidance to 30%–32% growth and maintained a 25.5% adjusted EBITDA margin target.
• Management says the Axon AI Era Plan is accelerating adoption—bookings were up 140% YoY, AI product revenue grew >700% YoY (small base), and Axon Assistant exceeded 1 million uses, indicating strong cross-sell and product pull-through.
• Dedrone is scaling rapidly with bookings up 500% YoY and revenue >300% YoY, deployed at major events and cited as a durable new growth leg across public safety, enterprise and international markets.
• The company is making a significant inventory investment (including memory components) to avoid supply constraints, which weighed on Q1 free cash flow; management still expects approximately $450 million of free cash flow for 2026 and improving conversion later in the year.
• International and enterprise momentum continued—international revenue was up >100% YoY (20% of Q1 revenue), the enterprise team closed a $40 million telco Fusus deal, and combined recent acquisitions (Fusus, Dedrone) have already booked >1.5x their purchase price, supporting the company’s land-and-expand strategy.

Axon Enterprise Stock Performance

AXON stock traded up $28.27 during trading on Monday, hitting $476.99. 1,198,903 shares of the company traded hands, compared to its average volume of 1,084,434. Axon Enterprise has a 1 year low of $339.01 and a 1 year high of $885.91. The company has a market cap of $38.45 billion, a PE ratio of 191.56, a P/E/G ratio of 8.16 and a beta of 1.45. The stock’s 50-day simple moving average is $407.53 and its 200 day simple moving average is $494.02. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.27 and a quick ratio of 1.93.

Insiders Place Their Bets

In other news, Director Jeri Williams sold 157 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $490.00, for a total transaction of $76,930.00. Following the sale, the director owned 1,159 shares of the company’s stock, valued at $567,910. This trade represents a 11.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Isaiah Fields sold 2,000 shares of the firm’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $400.00, for a total transaction of $800,000.00. Following the sale, the insider owned 52,813 shares in the company, valued at approximately $21,125,200. This represents a 3.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 2,355 shares of company stock worth $977,233. Corporate insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Axon Enterprise

Institutional investors and hedge funds have recently modified their holdings of the business. AlphaCentric Advisors LLC purchased a new position in Axon Enterprise during the fourth quarter worth approximately $34,000. Darwin Wealth Management LLC acquired a new position in shares of Axon Enterprise during the 2nd quarter worth approximately $37,000. Strive Financial Group LLC acquired a new position in shares of Axon Enterprise during the 4th quarter worth approximately $41,000. Advocate Investing Services LLC purchased a new position in shares of Axon Enterprise during the 4th quarter valued at approximately $57,000. Finally, Van ECK Associates Corp purchased a new position in shares of Axon Enterprise during the 3rd quarter valued at approximately $60,000. Hedge funds and other institutional investors own 79.08% of the company’s stock.

Analysts Set New Price Targets

AXON has been the topic of several recent analyst reports. Citizens Jmp cut their price objective on shares of Axon Enterprise from $825.00 to $700.00 and set a “market outperform” rating on the stock in a report on Thursday, May 7th. UBS Group lowered their target price on shares of Axon Enterprise from $570.00 to $440.00 and set a “neutral” rating for the company in a research note on Thursday, May 7th. The Goldman Sachs Group set a $535.00 target price on shares of Axon Enterprise in a research report on Thursday, May 7th. JPMorgan Chase & Co. upped their price target on shares of Axon Enterprise from $750.00 to $755.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Finally, TD Cowen lowered their price objective on shares of Axon Enterprise from $950.00 to $825.00 and set a “buy” rating for the company in a research note on Wednesday, April 8th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $712.75.

Axon Enterprise Company Profile

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.