Core Insights - Axon Enterprise, Inc. (AXON) is experiencing strong performance in its Connected Devices segment, driven by robust demand for its TASER 10 products and other advanced technologies [1][4] Segment Performance - The Connected Devices segment's revenues increased by 24% year over year, reaching $405 million in Q3 2025, with TASER and Personal Sensors businesses growing by 17% and 20%, respectively, while Platform Solutions surged by 71% [3][8] - The introduction of the Axon Body 4 body-worn camera in April 2023 has led to strong orders, contributing positively to segment growth [2] Market Demand - The demand for Axon's public safety technologies is expected to remain strong due to rising global terrorism and criminal activities, positioning the Connected Devices portfolio for sustained growth [4] Peer Comparison - Kratos Defense & Security Solutions, Inc. reported a 23% year-over-year revenue increase in its Government Solutions segment, while Teledyne Technologies Incorporated's Digital Imaging segment saw a 2.2% increase [5][6] Valuation and Estimates - Axon is currently trading at a forward price-to-earnings ratio of 72.59X, which is above the industry average of 46.27X, and it carries a Value Score of F [10] - The Zacks Consensus Estimate for Axon's fourth-quarter 2025 earnings has decreased by 0.6% over the past 60 days [11]

Company Overview - Axon Enterprise, Inc. (AXON) is focusing on strategic collaborations to expand its drone offerings and customer base, including a partnership with Skydio to introduce a comprehensive line of drones for public safety [1][8] - The partnership includes autonomous drones, onsite docking stations, and integrated flight control solutions from Skydio, along with Axon's real-time operations and evidence management solutions [2] Recent Developments - In October 2024, Axon acquired Dedrone, enhancing its capabilities in airspace security and improving response to drone threats [3] - Axon continues to invest in DroneSense, a leading provider of drone software, further strengthening its ecosystem [3] Market Demand - The demand for advanced public safety technologies is expected to remain strong due to increasing instances of terrorism and criminal activities globally, which supports ongoing demand for Axon's drone equipment [4] Peer Performance - Woodward, Inc.'s Industrial segment reported a decline in net sales by 4.7% year over year, primarily due to lower on-highway volume in China [5] - Teledyne Technologies' Digital Imaging segment saw a revenue increase of 2.2% year over year, driven by higher demand for commercial infrared imaging components and surveillance systems [6] Financial Performance - Axon's shares have gained 130.2% over the past year, outperforming the industry's growth of 47.5% [7] - The company is currently trading at a forward price-to-earnings ratio of 99.45X, significantly above the industry average of 51.68X [10] Earnings Estimates - The Zacks Consensus Estimate for Axon's 2025 earnings has increased slightly over the past 30 days, indicating positive sentiment [12] - Current earnings estimates for the upcoming quarters and years are as follows: Q2 2025 at $1.54, Q3 2025 at $1.54, FY 2025 at $6.35, and FY 2026 at $7.98 [13]