Axon Enterprise Stock: Is AXON Underperforming the Industrial Sector?

Core Insights - Axon Enterprise, Inc. (AXON) is a global public safety technology company with a market cap of $43.1 billion, providing integrated hardware and cloud-based software solutions for law enforcement and first responders [1] - The company operates in two segments: Software and Sensors, and TASER, offering products such as body and in-car cameras, conduct energy devices, digital evidence management, and VR training [1][2] Financial Performance - AXON reported Q3 2025 revenue of $710.64 million, which was better than expected; however, shares fell 9.4% the following day due to adjusted EPS of $1.17 being below forecasts [5] - The total gross margin decreased to 60.1%, and stock-based compensation reached $146 million across COGS, SG&A, and R&D, raising concerns among investors [5] Stock Performance - AXON stock has declined 38.3% from its 52-week high of $885.91 and is down 25.3% over the past three months, underperforming the Industrial Select Sector SPDR Fund's (XLI) 2% rise during the same period [3][4] - Year-to-date, AXON shares are down over 8%, lagging behind XLI's 16.3% increase, and have fallen 14.9% over the past 52 weeks compared to XLI's nearly 10% return [4] Market Position and Analyst Sentiment - Despite recent underperformance, AXON has a consensus rating of "Strong Buy" from 20 analysts, with a mean price target of $815.29, indicating a potential upside of 49.1% from current levels [6] - In contrast, rival AerCap Holdings N.V. (AER) has seen its shares surge 46.6% over the past 52 weeks and nearly 46% year-to-date, highlighting AXON's relative weakness in the market [6]