Axon Enterprise’s (AXON) Acquisition Strategy Drives Bullish Analyst Sentiment Despite Earnings Miss

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]