RBC Capital Initiates Coverage of Axon Enterprise (AXON) with ‘Outperform’, $860 PT

Core Insights - Axon Enterprise Inc. is recognized as a strong investment opportunity by Wall Street analysts, with RBC Capital initiating coverage with an Outperform rating and a price target of $860, citing expected sustained revenue growth of 25% due to a robust market position [1][3] Financial Performance - In Q3 2025, Axon reported total revenue of $711 million, reflecting a 31% year-over-year increase, driven primarily by the SaaS segment which grew 41% to $305 million [2] - Connected Devices revenue increased by 24% year-over-year to $405 million [2] - For Q4, Axon provided revenue guidance of $750 to $755 million, with a full-year revenue guidance of approximately $2.74 billion, indicating a 31% growth at the midpoint [3] Product Growth Drivers - Key product growth drivers include TASER 10, contributing to a 17% increase in TASER revenue, and Axon Body 4, which drove a 20% increase in Personal Sensors revenue [3] - The Platform Solutions Revenue experienced significant growth, surging 71%, fueled by advancements in counter-drone technology, virtual reality, and fleet products [3] Annual Recurring Revenue (ARR) - The company's ARR grew by 41% to $1.3 billion, with a strong net revenue retention rate of 124% [3]