A month has gone by since the last earnings report for Axon Enterprise (AXON) . Shares have lost about 15% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Axon due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.Axon's Q3 Earnings Miss Estimates & Revenues Beat, 2025 View ...

Core Insights - Axon Enterprise, Inc. (AXON) has experienced a 31.1% decline in stock price over the past six months, underperforming both the industry and the S&P 500, which grew by 3.8% and 17.9% respectively [1][2] - Despite the recent decline, AXON has delivered a 134.6% shareholder return over the past couple of years, indicating strong long-term performance [3] - The company is facing near-term challenges due to rising costs, increased debt levels, and a high valuation, which may weigh on its prospects [8] Financial Performance - Axon's cost of sales increased significantly, with year-over-year increases of 18.2%, 34.4%, and 32.7% in the first three quarters of 2025, and a 39% increase in 2024 [4] - Selling, general, and administrative expenses surged by 48%, 41.7%, and 31.5% in the first three quarters of 2025, with a 49.8% increase in 2024 [5] - The company's long-term notes payable reached $1.73 billion by the end of the third quarter of 2025, up from zero at the end of 2024, primarily due to strategic investments and expansion activities [6] Valuation Concerns - AXON's forward 12-month price-to-earnings (P/E) ratio is 71.25X, significantly higher than the industry average of 42.55X, making it vulnerable to market sentiment shifts [9] Growth Prospects - The Connected Devices segment is a key growth driver, with revenues increasing by 26% year over year in the first nine months of 2025, supported by the popularity of the TASER 10 products [10] - The introduction of the Axon Body 4 camera in April 2023 has generated significant demand, contributing to a 17% year-over-year revenue increase from the TASER product line [11] - The Software & Services segment also showed strong growth, with a 39.6% revenue increase in the first nine months of 2025, driven by digital evidence management and premium features [12] - Axon raised its revenue guidance for 2025 to approximately $2.74 billion, indicating a growth of about 31% year over year [13] Return on Equity - Axon's trailing 12-month return on equity (ROE) was 20.84%, significantly higher than the industry's 9.44%, reflecting efficient use of shareholder funds [14] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings is $6.35 per share, reflecting a decrease of 8.1% in the past 60 days but indicating a year-over-year growth of 6.9% [17]

Core Insights - The article highlights three stocks that have significantly outperformed the market over the past decade: Intuitive Surgical, Nvidia, and Axon Enterprise, with returns ranging from 887% to over 22,120% [2][4][8]. Intuitive Surgical - Intuitive Surgical specializes in robotic-assisted surgical systems, enhancing surgical precision and patient outcomes [3]. - Over the past decade, Intuitive Surgical's shares have increased by more than 887%, with notable underperformance in 2019 and 2022 [4]. - The company has a market capitalization of $202 billion and a gross margin of 66.37%, with projected growth of around 17% in da Vinci procedures this year [6]. - Despite a high price-to-earnings (P/E) ratio of 75, the stock is considered a promising long-term investment due to its innovative products [7]. Nvidia - Nvidia, a leading chipmaker, has achieved returns exceeding 22,120% over the past decade and is currently the most valuable company globally [8]. - The stock has risen 34% this year, with only two years of underperformance against the S&P 500 in 2018 and 2022 [8]. - Nvidia has a market capitalization of $4,364 billion and a gross margin of 70.05%, with significant free cash flow of over $77 billion [10][11]. - The stock trades at a P/E ratio of 44, which is considered high but justifiable given its growth potential in the AI sector [9]. Axon Enterprise - Axon Enterprise, known for its body cameras and less-lethal weapons, has seen its valuation rise by 2,860% over the past decade [12]. - The company had off years in 2015 and 2017 but generated positive returns in 2022 amid market turmoil [12]. - Axon has a market capitalization of $43 billion and a gross margin of 60.31%, but it trades at a high P/E ratio of 171, indicating potential overvaluation [14][13]. - The stock is currently down 10% this year, and while it has strong growth prospects, it is advised to be cautious due to its high valuation [15].

Mak Jennifer H, Chief Accounting Officer of Axon Enterprise, sold 74 shares at $536.75 each, now holding 14,408 shares.AXON's stock has experienced a significant decline of 26.6% in the past month, with a recent slight increase of 1.08%.Despite recent volatility and high valuation concerns, Axon remains a leader in public-safety technology.On December 3, 2025, Mak Jennifer H, the Chief Accounting Officer of Axon Enterprise (NASDAQ:AXON), sold 74 shares of the company's common stock at $536.75 each. This tra ...

Core Insights - Axon Enterprise (AXON) shares have experienced a significant decline of 26.6% over the past month, dropping from $732.23 on October 31, 2025, to $537.75 currently, with further declines anticipated due to the stock's Very High valuation [2] - The company specializes in public-safety technology, including TASER devices, body cameras, in-car video systems, and the Evidence.com cloud platform, along with software for law enforcement agencies [3] Historical Performance - Historically, stocks that have experienced sharp declines of 30% or more within a 30-day period have shown an average return of 69% over the following 12 months, with a median peak return of 81% [4][8] - Axon has met the dip threshold of -30% within 30 days on 8 occasions since January 1, 2010 [5] Financial Considerations - Assessing revenue growth, profitability, cash flow, and balance sheet strength is crucial to minimize risks associated with potential declines in stock value [5] - A well-structured portfolio can help mitigate risks associated with individual stocks while allowing for potential upside [6] Portfolio Performance - The Trefis High Quality (HQ) Portfolio, which includes 30 stocks, has consistently outperformed its benchmark indices, yielding superior returns with reduced risk [7]

Core Viewpoint - Axon Enterprise (AXON) shares have experienced a significant decline of 26.6% over the past month, dropping from $732.23 on October 31, 2025, to $537.75 currently, with potential for further downside due to its Very High valuation [2] Company Overview - Axon develops public-safety technology, including TASER devices, body cameras, in-car video systems, and the Evidence.com cloud platform, along with software for real-time operations, records management, and AI-driven video analysis for law enforcement agencies [3] Historical Performance Analysis - Historically, stocks that have experienced sharp drops of 30% or more within a 30-day span have shown an average return of 69% over the following 12 months, with a median peak return of 81% [4][8] - Axon has met the dip threshold of -30% within 30 days on 8 occasions since January 1, 2010 [5] Investment Strategy - A well-structured portfolio can help mitigate risks associated with individual stocks while allowing investors to benefit from potential upside [6] - The Trefis High Quality (HQ) Portfolio, which includes 30 stocks, has consistently outperformed its benchmark indices, yielding superior returns with decreased risk [7]

Core Insights - Axon Enterprise, Inc. (AXON) reported an adjusted EBITDA of $503.8 million for the first nine months of 2025, marking a year-over-year increase of 32.6% with an adjusted EBITDA margin of 25.4% [1][8] - The company's gross margin improved to 60.4%, driven by strong sales of TASER 10, Axon Body 4, and platform solutions, despite rising operating expenses [2][8] - Axon has updated its 2025 adjusted EBITDA guidance to a range of $682-$686 million, indicating a margin of approximately 25% [3][8] Financial Performance - In Q3 2025, Axon achieved revenues of $710.6 million, reflecting a 31% increase year-over-year [2] - The company’s focus on cost management and revenue growth is expected to enhance its margin performance moving forward [3][4] Peer Comparison - While Axon is improving its margins, peers like Kratos Defense & Security Solutions, Inc. (KTOS) and Teledyne Technologies Incorporated (TDY) are facing challenges, with Kratos experiencing a 22% increase in cost of sales and a decline in gross margin by 310 basis points to 22.4% [5][6] - Teledyne Technologies reported a 6.8% rise in cost of sales and a 40 basis point decline in adjusted operating margin to 22.1% [6] Valuation and Market Performance - Axon shares have declined by 10.2% year-to-date, contrasting with the industry growth of 23.1% [7] - The company is currently trading at a forward price-to-earnings ratio of 69.96X, significantly above the industry average of 43.80X [10] - The Zacks Consensus Estimate for Axon's 2025 earnings has decreased by 8.1% over the past 60 days [11]

Core Insights - Axon Enterprise, Inc. (NASDAQ:AXON) is currently viewed positively by analysts, with 90% recommending a Buy or equivalent rating and a consensus 1-year price target of $822.50, indicating a 54.27% upside potential [2] Financial Performance - Following the Q3 earnings release, Axon Enterprise's EPS estimates were revised down to $6.32 for 2025, $7.79 for 2026, and $9.94 for 2027, reflecting an earnings miss [4] - Despite the earnings miss, the company raised its full-year 2025 revenue guidance to approximately $2.74 billion, representing a 31% growth [4] Acquisition Strategy - On November 4, 2025, Axon announced its agreement to acquire Carbyne, aiming to integrate Carbyne's cloud-native emergency communications platform with its AI-driven insights, leading to the development of Axon 911 [5] - The acquisition is expected to close in the first quarter of 2026 [5] Market Expansion - CFRA highlighted a $5 billion expansion of Axon's total addressable market due to the Carbyne and Prepared acquisitions, along with optimism regarding strengthened international momentum from a significant European cloud deal [6]

Core Insights - Axon Enterprise has shown exceptional investment performance, with a $10,000 investment five years ago growing to over $41,000, and a decade-long investment nearing $300,000 [1] Group 1: Product Offerings and Revenue - Axon is well-known for its Taser and body cameras, but it also offers cloud-based software services that significantly contribute to its revenue growth [2] - The company benefits from a reliable revenue stream due to multi-year contracts with customers, resulting in a high retention rate [3] - As of Q3 2025, Axon reported annualized recurring revenue (ARR) of $1.3 billion, reflecting a 41% year-over-year increase [4] Group 2: Financial Performance - Axon has a market capitalization of $43 billion, with a current stock price of $539.67 [5] - The company has $11.4 billion in future contracted bookings, which is up 39%, indicating strong future revenue potential [6] Group 3: Business Strategy and Growth Opportunities - Axon's adaptability in its business model has allowed it to build a durable revenue base, expanding beyond single hardware offerings to a comprehensive suite of services [7] - The company is looking to expand into federal agencies, which presents an additional $12 billion market opportunity [8] - Axon is also developing new technologies, including drones and robots for law enforcement, and has acquired Carbyne to enhance the 911 system [9] Group 4: Stock Performance and Market Sentiment - Despite a 20% decline in stock price over the past year and a 40% drop from all-time highs, long-term expansion could lead to stock recovery for patient investors [10]

Core Viewpoint - Axon Enterprise, Inc. is considered a promising investment opportunity with significant upside potential despite a recent decline in share price following its fiscal Q3 2025 earnings report [1] Financial Performance - In fiscal Q3 2025, Axon reported a revenue growth of 30.57%, reaching $710.64 million, which exceeded estimates by $5.81 million [3] - The company's earnings per share (EPS) was $1.17, falling short of consensus estimates by $0.37 [3] - The financial results were adversely affected by increased costs due to US tariffs, marking the first quarter where the full impact of these tariffs was realized [3] Analyst Ratings - Jeremy Hamblin from Craig-Hallum reiterated a Buy rating on Axon without specifying a price target [2] - Andrew Sherman from TD Cowen maintained a Buy rating with a price target of $925, suggesting that the recent share price decline offers an attractive entry point for investors [2][4] Company Overview - Axon focuses on providing advanced technology solutions for law enforcement and public safety, including hardware like cameras and TASERs, as well as cloud software for managing evidence and operations [5]