Axon Enterprise (NASDAQ:AXON) Hits New 12-Month Low on Disappointing Earnings

Axon Enterprise, Inc (NASDAQ:AXON)’s stock price reached a new 52-week low during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $329.01 and last traded at $323.6120, with a volume of 79,771 shares changing hands. The stock had previously closed at $382.56.

The biotechnology company reported $1.72 earnings per share for the quarter, missing the consensus estimate of $1.89 by ($0.17). Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%. The company had revenue of $908.55 million for the quarter, compared to analysts’ expectations of $934.33 million. During the same period last year, the business earned $1.17 EPS. The company’s quarterly revenue was up 27.8% compared to the same quarter last year.

More Axon Enterprise News

Here are the key news stories impacting Axon Enterprise this week:

• Positive Sentiment: Axon reported record Q3 revenue of about $909 million, up 28% year over year, and returned to profitability. Drone-as-First-Responder revenue rose 43%, while AI bookings were up more than 50% year to date and AI annual recurring revenue topped $100 million. Read More.
• Positive Sentiment: Axon is investing an additional $1.2 billion in Skydio, bringing its stake to 37%, and will become Skydio’s exclusive public-safety distributor in the U.S. and Canada. The deal could strengthen Axon’s position in drones and related services, though it also represents a substantial investment. Read More.
• Neutral Sentiment: Needham cut its price target from $750 to $500 but retained a Buy rating. Goldman Sachs and JPMorgan also lowered their targets, to $575 and $610, respectively—signaling reduced expectations while maintaining targets above the quoted share price. Read More.
• Negative Sentiment: Q3 adjusted earnings of $1.72 per share and revenue of $908.55 million both missed analyst estimates. Axon’s 2026 revenue outlook is now $3.6 billion versus a $3.7 billion consensus; Q4 revenue guidance of $990 million–$1.0 billion is also below expectations of about $1.1 billion. Federal drone deployment delays are weighing on the outlook. Read More.
• Negative Sentiment: Axon faces a class-action lawsuit concerning its AI-powered license-plate surveillance network, adding legal and reputational uncertainty. Read More.

Analyst Ratings Changes

A number of brokerages have issued reports on AXON. Argus boosted their target price on Axon Enterprise from $460.00 to $600.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. Craig Hallum cut Axon Enterprise from a “buy” rating to a “hold” rating and set a $390.00 price target on the stock. in a research note on Friday. Northcoast Research raised their price target on Axon Enterprise from $650.00 to $680.00 and gave the stock a “buy” rating in a research report on Tuesday, August 11th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Axon Enterprise in a research note on Tuesday. Finally, TD Cowen cut their price objective on Axon Enterprise from $825.00 to $800.00 and set a “buy” rating on the stock in a report on Monday, October 26th. Thirteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $644.56.

Insider Buying and Selling

In related news, President Joshua Isner sold 16,775 shares of the business’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $574.43, for a total transaction of $9,636,063.25. Following the completion of the transaction, the president directly owned 296,974 shares of the company’s stock, valued at $170,590,774.82. The trade was a 5.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Isaiah Fields sold 1,017 shares of the business’s stock in a transaction on Friday, September 11th. The stock was sold at an average price of $480.45, for a total value of $488,617.65. Following the transaction, the insider directly owned 56,264 shares of the company’s stock, valued at $27,032,038.80. The trade was a 1.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 37,397 shares of company stock worth $21,234,034 over the last ninety days. Insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Axon Enterprise

Several hedge funds and other institutional investors have recently made changes to their positions in AXON. State Street Corp raised its holdings in Axon Enterprise by 5,700.2% in the second quarter. State Street Corp now owns 213,561,844 shares of the biotechnology company’s stock valued at $119,724,905,000 after acquiring an additional 209,879,882 shares in the last quarter. Envestnet Asset Management Inc. grew its holdings in Axon Enterprise by 18,050.2% during the 2nd quarter. Envestnet Asset Management Inc. now owns 13,200,075 shares of the biotechnology company’s stock worth $7,400,094,000 after acquiring an additional 13,127,348 shares in the last quarter. BlackRock Inc. increased its position in shares of Axon Enterprise by 4.3% in the 2nd quarter. BlackRock Inc. now owns 8,334,551 shares of the biotechnology company’s stock valued at $4,672,432,000 after purchasing an additional 345,365 shares during the last quarter. Robeco Institutional Asset Management B.V. increased its position in shares of Axon Enterprise by 391,214.9% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 6,988,884 shares of the biotechnology company’s stock valued at $2,952,943,000 after purchasing an additional 6,987,098 shares during the last quarter. Finally, Assenagon Asset Management S.A. increased its position in shares of Axon Enterprise by 5,022.8% in the 3rd quarter. Assenagon Asset Management S.A. now owns 4,266,589 shares of the biotechnology company’s stock valued at $1,802,719,000 after purchasing an additional 4,183,302 shares during the last quarter. Hedge funds and other institutional investors own 79.08% of the company’s stock.

Axon Enterprise Stock Performance

The stock’s 50-day simple moving average is $447.49 and its 200 day simple moving average is $476.73. The company has a market capitalization of $26.11 billion, a PE ratio of 128.94, a P/E/G ratio of 8.06 and a beta of 1.48. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.80 and a current ratio of 2.15.

Axon Enterprise Company Profile

Axon Enterprise, Inc develops technology and connected products for public safety organizations. The company’s portfolio includes TASER conducted-energy weapons, body-worn cameras, in-car cameras, and related hardware designed to support law enforcement, corrections, security, and other emergency-response professionals.

Axon also provides cloud-based software for managing digital evidence, records, workflows, real-time operations, investigations, and communications. Its platform is intended to connect hardware, software, and services across the public-safety ecosystem, helping agencies collect, store, analyze, and share operational information.

The company was founded in 1993 as TASER International by Rick Smith and Tom Smith and adopted the name Axon Enterprise in 2017 as it expanded beyond conducted-energy weapons into a broader technology platform.