Axon Enterprise (NASDAQ:AXON) Hits New 1-Year Low on Disappointing Earnings

Key Points

• Axon shares hit a 52-week low after the earnings announcement, falling sharply from the prior close of $382.56.
• Quarterly EPS of $1.72 and revenue of $908.55 million missed analyst estimates, despite revenue rising 27.8% year over year.
• The company’s 2026 revenue outlook of $3.6 billion is below the $3.7 billion consensus; delayed federal drone deployments are weighing on expectations.

Shares of Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report) hit a new 52-week low during trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $329.01 and last traded at $323.6120, with a volume of 79,771 shares trading hands. The stock had previously closed at $382.56.

The biotechnology company reported $1.72 earnings per share for the quarter, missing analysts' consensus estimates of $1.89 by ($0.17). Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%. The company had revenue of $908.55 million for the quarter, compared to analysts' expectations of $934.33 million. During the same quarter in the prior year, the company earned $1.17 EPS. The firm's quarterly revenue was up 27.8% on a year-over-year basis.

Key Axon Enterprise News

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

• Positive Sentiment: Axon reported record Q3 revenue of about $909 million, up 28% year over year, and returned to profitability. Drone-as-First-Responder revenue rose 43%, while AI bookings were up more than 50% year to date and AI annual recurring revenue topped $100 million. Read More.
• Positive Sentiment: Axon is investing an additional $1.2 billion in Skydio, bringing its stake to 37%, and will become Skydio’s exclusive public-safety distributor in the U.S. and Canada. The deal could strengthen Axon’s position in drones and related services, though it also represents a substantial investment. Read More.
• Neutral Sentiment: Needham cut its price target from $750 to $500 but retained a Buy rating. Goldman Sachs and JPMorgan also lowered their targets, to $575 and $610, respectively—signaling reduced expectations while maintaining targets above the quoted share price. Read More.
• Negative Sentiment: Q3 adjusted earnings of $1.72 per share and revenue of $908.55 million both missed analyst estimates. Axon’s 2026 revenue outlook is now $3.6 billion versus a $3.7 billion consensus; Q4 revenue guidance of $990 million–$1.0 billion is also below expectations of about $1.1 billion. Federal drone deployment delays are weighing on the outlook. Read More.
• Negative Sentiment: Axon faces a class-action lawsuit concerning its AI-powered license-plate surveillance network, adding legal and reputational uncertainty. Read More.

Analyst Upgrades and Downgrades

Several research firms have issued reports on AXON. Barclays lifted their target price on Axon Enterprise from $523.00 to $688.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Raymond James Financial set a $675.00 price target on shares of Axon Enterprise in a report on Thursday, October 15th. Argus lifted their price objective on shares of Axon Enterprise from $460.00 to $600.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Morgan Stanley boosted their price objective on shares of Axon Enterprise from $600.00 to $640.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. Finally, Zacks Research cut shares of Axon Enterprise from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Thirteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $644.56.

Insider Activity at Axon Enterprise

In other news, President Joshua Isner sold 16,775 shares of the company's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $574.43, for a total transaction of $9,636,063.25. Following the transaction, the president owned 296,974 shares in the company, valued at $170,590,774.82. This represents a 5.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Patrick Smith sold 10,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $508.99, for a total transaction of $5,089,900.00. Following the completion of the transaction, the chief executive officer directly owned 3,118,012 shares of the company's stock, valued at $1,587,036,927.88. The trade was a 0.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 37,397 shares of company stock worth $21,234,034. 4.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Axon Enterprise

A number of large investors have recently made changes to their positions in AXON. Keating Financial Advisory Services Inc. acquired a new stake in Axon Enterprise during the second quarter worth $31,000. Washington Trust Advisors Inc. raised its position in Axon Enterprise by 1,300.0% in the second quarter. Washington Trust Advisors Inc. now owns 70 shares of the biotechnology company's stock valued at $39,000 after purchasing an additional 65 shares during the period. M & L Capital Management Ltd acquired a new position in shares of Axon Enterprise in the 3rd quarter valued at $30,000. Wealth Enhancement Trust Services Inc. acquired a new position in shares of Axon Enterprise in the 3rd quarter valued at $33,000. Finally, Delos Wealth Advisors LLC acquired a new position in shares of Axon Enterprise in the 2nd quarter valued at $45,000. 79.08% of the stock is owned by hedge funds and other institutional investors.

Axon Enterprise Trading Down 16.0%

The firm has a market capitalization of $26.11 billion, a PE ratio of 128.94, a PEG ratio of 8.06 and a beta of 1.48. The company has a current ratio of 2.15, a quick ratio of 1.80 and a debt-to-equity ratio of 0.47. The business has a fifty day moving average price of $447.49 and a two-hundred day moving average price of $476.73.

Axon Enterprise Company Profile

Axon Enterprise, Inc develops technology and connected products for public safety organizations. The company's portfolio includes TASER conducted-energy weapons, body-worn cameras, in-car cameras, and related hardware designed to support law enforcement, corrections, security, and other emergency-response professionals.

Axon also provides cloud-based software for managing digital evidence, records, workflows, real-time operations, investigations, and communications. Its platform is intended to connect hardware, software, and services across the public-safety ecosystem, helping agencies collect, store, analyze, and share operational information.

The company was founded in 1993 as TASER International by Rick Smith and Tom Smith and adopted the name Axon Enterprise in 2017 as it expanded beyond conducted-energy weapons into a broader technology platform.

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