Axon Enterprise (NASDAQ:AXON) Trading Down 10.8% – What’s Next?

Axon Enterprise, Inc (NASDAQ:AXON) shares were down 10.8% during trading on Thursday . The stock traded as low as $549.40 and last traded at $543.8090. Approximately 684,014 shares changed hands during trading, a decline of 36% from the average session volume of 1,065,041 shares. The stock had previously closed at $609.49.

More Axon Enterprise News

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

• Positive Sentiment: Axon reported Q2 revenue of $904 million, up 35.3% year over year and above the roughly $876 million consensus estimate. Adjusted earnings of $1.88 per share exceeded several analyst estimates, while annual recurring revenue rose 39% to $1.6 billion and net revenue retention reached 126%. Axon Q2 2026 Results
• Positive Sentiment: Management raised its full-year 2026 revenue-growth outlook to 32%-34% while maintaining its 25.5% adjusted EBITDA margin target. The improved outlook reflects record bookings, international expansion, and continued demand for software, artificial intelligence and counter-drone products. AXON Q2 Earnings Call Highlights Higher Revenue Outlook
• Positive Sentiment: Growth businesses remained particularly strong: AI Era revenue increased nearly 700%, Platform Solutions revenue climbed 123% to $150 million, and Dedrone revenue surpassed $100 million. Dedrone systems were deployed at all 11 World Cup sites, supporting the counter-drone opportunity. Axon Stock Falls After AI and Drone Wins Fuel Q2 Beat
• Positive Sentiment: William Blair analyst Jonathan Ho reiterated a Buy rating, citing recurring-revenue growth, the expanding AI platform and counter-drone momentum as sources of longer-term upside. Axon Receives Fresh Buy Rating
• Neutral Sentiment: The headline earnings comparison is mixed: $1.88 per share was above some consensus estimates but slightly below the $1.89 Zacks consensus and below $2.12 in the year-ago quarter. This may have contributed to uncertainty despite the revenue beat.
• Negative Sentiment: Gross margin declined as professional services represented a larger mix and Axon invested to scale newer products. Higher memory costs are also expected to pressure near-term margins, while growing inventory raised additional concerns. Axon Posts Lower Quarterly Gross Margin

Analyst Upgrades and Downgrades

AXON has been the subject of several recent research reports. JPMorgan Chase & Co. increased their price target on Axon Enterprise from $750.00 to $755.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Piper Sandler reiterated an “overweight” rating and issued a $732.00 target price on shares of Axon Enterprise in a report on Thursday. Barclays boosted their price target on shares of Axon Enterprise from $523.00 to $688.00 and gave the stock an “overweight” rating in a research report on Thursday. Morgan Stanley set a $600.00 price objective on shares of Axon Enterprise in a research note on Thursday, May 7th. Finally, Citizens Jmp reiterated a “market outperform” rating and set a $700.00 price objective on shares of Axon Enterprise in a research report on Thursday, June 25th. Thirteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $715.54.

Axon Enterprise Stock Down 12.1%

The firm has a market cap of $43.18 billion, a price-to-earnings ratio of 215.11, a PEG ratio of 12.39 and a beta of 1.39. The firm has a 50 day moving average of $509.69 and a 200 day moving average of $474.71. The company has a quick ratio of 1.93, a current ratio of 2.27 and a debt-to-equity ratio of 0.49.

Axon Enterprise (NASDAQ:AXON) last posted its quarterly earnings results on Wednesday, August 5th. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.84 by $0.04. The firm had revenue of $904.39 million for the quarter, compared to analysts’ expectations of $876.42 million. Axon Enterprise had a return on equity of 3.78% and a net margin of 6.90%.The company’s revenue for the quarter was up 35.3% compared to the same quarter last year. During the same period in the prior year, the business earned $2.12 EPS. As a group, sell-side analysts predict that Axon Enterprise, Inc will post 1.63 earnings per share for the current year.

Insiders Place Their Bets

In other Axon Enterprise news, insider Elizabeth Reid Coughlin sold 1,554 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $485.00, for a total value of $753,690.00. Following the completion of the sale, the insider directly owned 34,024 shares in the company, valued at approximately $16,501,640. This trade represents a 4.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, President Joshua Isner sold 13,000 shares of the company’s stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $488.45, for a total transaction of $6,349,850.00. Following the transaction, 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 disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 58,989 shares of company stock valued at $30,527,983. 4.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Axon Enterprise

Several hedge funds and other institutional investors have recently modified their holdings of AXON. Rockefeller Capital Management L.P. boosted its holdings in shares of Axon Enterprise by 53.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 11,518 shares of the biotechnology company’s stock worth $6,542,000 after purchasing an additional 4,002 shares in the last quarter. Legal & General Group Plc boosted its stake in Axon Enterprise by 1.3% in the fourth quarter. Legal & General Group Plc now owns 426,533 shares of the biotechnology company’s stock worth $242,241,000 after buying an additional 5,419 shares in the last quarter. Eurizon Capital SGR S.p.A. bought a new position in Axon Enterprise during the fourth quarter valued at approximately $13,116,000. Arrowstreet Capital Limited Partnership purchased a new position in shares of Axon Enterprise during the first quarter worth approximately $15,067,000. Finally, Harel Insurance Investments & Financial Services Ltd. lifted its holdings in shares of Axon Enterprise by 40.7% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 15,083 shares of the biotechnology company’s stock worth $6,406,000 after acquiring an additional 4,360 shares during the last quarter. Institutional investors own 79.08% of the company’s stock.

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.