Tim Beyers: It is a thing that is going on. We hope the market is up. There is hope. If you haven't followed it, there is hope for the ending of the government shutdown, lots of things that political pundits will tell you about. We're going to tell you about some stocks. Let's start with Axon Enterprise. Emily, we're looking at three earnings reports that surprised and disappointed. Axon was one of them. What we want to do is break down what the street didn't like, what we think, and whether we think now is ...

Core Insights - Axon Enterprise, Inc. (AXON) is set to announce its third-quarter 2025 results on November 4, with expected revenues of $699.6 million, reflecting a 28.5% increase year-over-year, and earnings per share (EPS) estimated at $1.63, indicating a 12.4% growth from the previous year [1][9]. Financial Performance - The Zacks Consensus Estimate for third-quarter revenues is $699.6 million, up 28.5% from the same quarter last year, while the EPS estimate is $1.63, showing a 12.4% increase year-over-year despite a 1.2% decline in the past 60 days [1][9]. - Axon has a strong earnings surprise history, having exceeded the Zacks Consensus Estimate in the last four quarters with an average surprise of 25.9%, including a notable 37.7% beat in the last reported quarter [2]. Segment Performance - The Connected Devices segment is expected to benefit from robust demand for TASER 10 products and higher cartridge sales, with revenues estimated at $396 million, a 5.3% increase from the previous quarter [3][4]. - The Software & Services segment is projected to generate $302 million in net sales, reflecting a 3.4% growth from the previous quarter, driven by new user additions and increased demand for cloud services [5][6]. Strategic Developments - Axon is focused on acquisitions and strategic partnerships to enhance its product offerings, including the acquisition of Dedrone in October 2024, which strengthens its capabilities in airspace security [7]. - The partnership with Skydio, established in June 2024, aims to enhance Axon's position in the public safety market, particularly in the Drone as a First Responder category [8]. Cost Considerations - Despite strong revenue growth, rising costs related to business integration, higher wages, and stock-based compensation are anticipated to pressure margins in the upcoming quarter [8][9].