Update shared on02 Sep 2025
Fair value Decreased 1.03%Despite continued bullish sentiment around Axon's management strength, robust earnings outlook, and sector tailwinds in security and defense, analysts view much of this optimism as already priced in, resulting in a slight consensus price target reduction from $868.94 to $860.01.
Analyst Commentary
- Bullish analysts highlight Axon's strong management team and robust earnings outlook, with ongoing high demand for its products and solutions.
- Sector developments such as increases in the FY26 national defense budget, the impact of drone warfare initiatives like Operation Spiderweb, and a national focus on security and defense are seen as positive catalysts for Axon’s growth.
- Drone proliferation and clearing regulatory hurdles are expected to significantly benefit Axon, positioning it as a leading near-term beneficiary in public safety and operational technology (OT) security.
- Market consensus recognizes Axon's exceptional growth prospects, though some view this optimism as already priced into the stock, resulting in a balanced risk/reward profile.
- Bullish analysts anticipate Axon will continue to outperform the broader market due to its industry leadership and exposure to favorable macro and sector-specific trends.
What's in the News
- Axon Enterprise reported no share repurchases in Q2 2025; overall, it has completed the repurchase of 1,788,069 shares (3.35% of shares) for $33.8 million under its ongoing buyback program.
- The company raised full-year 2025 revenue guidance to $2.65–$2.73 billion, reflecting approximately 29% annual growth at the midpoint, up from prior guidance of $2.60–$2.70 billion.
Valuation Changes
Summary of Valuation Changes for Axon Enterprise
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $868.94 to $860.01.
- The Future P/E for Axon Enterprise has risen from 165.92x to 178.35x.
- The Net Profit Margin for Axon Enterprise has fallen from 12.25% to 11.36%.
Disclaimer
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