UBS Group Issues Positive Forecast for Axon Enterprise (NASDAQ:AXON) Stock Price

Key Points

• UBS raised Axon Enterprise’s price target to $600 from $440 but maintained a “neutral” rating, implying 14.09% upside from the prior close. The broader analyst consensus remains “Moderate Buy,” with an average target of $730.92.
• Axon reported quarterly revenue of $904.39 million, up 35.3% year over year and above expectations, while EPS of $1.88 exceeded consensus. Management also raised its full-year 2026 revenue-growth outlook to 32%-34%.
• Shares fell 13.7% to $525.91 amid concerns about weaker gross margins, negative free cash flow and the stock’s valuation above 200 times earnings, despite strong recurring-revenue and AI-related growth.

Axon Enterprise (NASDAQ:AXON - Get Free Report) had its target price hoisted by investment analysts at UBS Group from $440.00 to $600.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the biotechnology company's stock. UBS Group's price objective suggests a potential upside of 14.09% from the company's previous close.

AXON has been the topic of several other research reports. Needham & Company LLC reiterated a "buy" rating on shares of Axon Enterprise in a research report on Thursday. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Axon Enterprise in a research report on Tuesday, July 21st. Barclays upped their target price on Axon Enterprise from $523.00 to $688.00 and gave the stock an "overweight" rating in a report on Thursday. Weiss Ratings raised Axon Enterprise from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, May 8th. Finally, Zacks Research cut Axon Enterprise from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 10th. Thirteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $730.92.

Axon Enterprise Trading Down 13.7%

NASDAQ:AXON traded down $83.58 during trading hours on Thursday, hitting $525.91. The company had a trading volume of 1,433,543 shares, compared to its average volume of 1,070,147. The company has a market capitalization of $42.39 billion, a PE ratio of 208.37, a price-to-earnings-growth ratio of 12.39 and a beta of 1.39. The stock has a 50-day moving average price of $509.69 and a 200 day moving average price of $474.71. Axon Enterprise has a 52 week low of $339.01 and a 52 week high of $885.00. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.27 and a quick ratio of 1.93.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.84 by $0.04. Axon Enterprise had a net margin of 6.90% and a return on equity of 3.78%. The business had revenue of $904.39 million for the quarter, compared to the consensus estimate of $876.42 million. During the same period in the previous year, the firm earned $2.12 EPS. The company's quarterly revenue was up 35.3% compared to the same quarter last year. On average, equities research analysts predict that Axon Enterprise will post 1.63 EPS for the current fiscal year.

Insider Transactions at Axon Enterprise

In related news, President Joshua Isner sold 13,000 shares of the company's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $488.45, for a total value of $6,349,850.00. Following the sale, the president owned 169,125 shares in the company, valued at $82,609,106.25. This represents a 7.14% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CRO Cameron Brooks sold 1,242 shares of the firm's stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $500.00, for a total value of $621,000.00. Following the transaction, the executive directly owned 49,710 shares of the company's stock, valued at approximately $24,855,000. This trade represents a 2.44% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 58,989 shares of company stock worth $30,527,983. Company insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Axon Enterprise

A number of hedge funds have recently bought and sold shares of AXON. Baillie Gifford & Co. boosted its holdings in Axon Enterprise by 1,198.7% in the fourth quarter. Baillie Gifford & Co. now owns 1,642,578 shares of the biotechnology company's stock worth $932,869,000 after purchasing an additional 1,516,099 shares during the last quarter. Edgewood Management LLC purchased a new position in shares of Axon Enterprise in the 4th quarter worth $846,516,000. Wellington Management Group LLP grew its holdings in shares of Axon Enterprise by 326.9% in the fourth quarter. Wellington Management Group LLP now owns 1,539,738 shares of the biotechnology company's stock worth $874,463,000 after acquiring an additional 1,179,038 shares during the period. Norges Bank purchased a new stake in Axon Enterprise during the fourth quarter valued at $515,764,000. Finally, Styrax Capital LP purchased a new stake in Axon Enterprise during the first quarter valued at $84,938,000. Institutional investors own 79.08% of the company's stock.

Key Headlines Impacting Axon Enterprise

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

• Positive Sentiment: Axon reported second-quarter revenue of $904 million, up 35.3% year over year and ahead of Wall Street expectations. Non-GAAP earnings reached $1.88 per share, roughly in line with or slightly above consensus estimates. Axon reports Q2 2026 revenue of $904 million, up 35% year over year
• Positive Sentiment: Management raised its full-year 2026 revenue-growth outlook to 32%-34% while maintaining its 25.5% adjusted EBITDA margin target. Annual recurring revenue increased 39% to $1.6 billion, with net revenue retention at 126%.
• Positive Sentiment: Growth remains broad-based: Software & Services revenue rose 36%, AI Era revenue nearly quadrupled year over year, Platform Solutions revenue increased 123%, and Dedrone revenue surpassed $100 million. Record bookings, international expansion and counter-drone demand supported the upbeat outlook. Axon Q2 earnings call highlights
• Neutral Sentiment: William Blair analyst Jonathan Ho reiterated a Buy rating, citing recurring-revenue growth, the expanding AI platform and momentum in counter-drone products. Axon receives a fresh Buy rating
• Negative Sentiment: Gross margin weakened, particularly in Software & Services, falling to 71.3% from 75.6% as professional services and newer product investments carried lower margins. Higher memory costs are expected to create additional near-term pressure. Axon posts lower quarterly gross margin
• Negative Sentiment: Free cash flow turned negative and net income declined from the prior-year period, while inventory increased. These trends raised concerns that rapid expansion is requiring heavier investment than expected.
• Negative Sentiment: At a valuation above 200 times earnings, Axon remains vulnerable to multiple compression. Some valuation analysis indicates the stock looks expensive on a discounted-cash-flow basis, making profitability and cash-flow execution especially important for investors.

About Axon Enterprise

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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