Axon Enterprise, Inc. Just Recorded A 1,679% EPS Beat: Here's What Analysts Are Forecasting Next

Axon Enterprise, Inc. (NASDAQ:AXON) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$544m, some 3.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.86, 1,679% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Axon Enterprise after the latest results.

View our latest analysis for Axon Enterprise

Following the latest results, Axon Enterprise's twelve analysts are now forecasting revenues of US$2.54b in 2025. This would be a substantial 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to descend 13% to US$3.44 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$2.48b and earnings per share (EPS) of US$3.01 in 2025. So it seems there's been a definite increase in optimism about Axon Enterprise's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 20% to US$505per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Axon Enterprise at US$610 per share, while the most bearish prices it at US$385. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 27% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.1% annually. So although Axon Enterprise is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Axon Enterprise's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Axon Enterprise. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Axon Enterprise analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Axon Enterprise that you need to be mindful of.

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