Axon Enterprise (NASDAQ:AXON) Shares Gap Up on Better-Than-Expected Earnings

Axon Enterprise, Inc (NASDAQ:AXON) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $442.51, but opened at $498.43. Axon Enterprise shares last traded at $527.58, with a volume of 1,077,152 shares.

The biotechnology company reported $2.15 earnings per share for the quarter, topping the consensus estimate of $1.60 by $0.55. Axon Enterprise had a net margin of 4.48% and a return on equity of 2.94%. The company had revenue of $796.72 million for the quarter, compared to analysts’ expectations of $755.29 million. During the same period in the prior year, the business earned $2.08 earnings per share. Axon Enterprise’s revenue for the quarter was up 38.5% compared to the same quarter last year.

Key Stories Impacting Axon Enterprise

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

• Positive Sentiment: Q4 beat and raised medium/long-term targets — Axon reported $796.7–797M in Q4 revenue (≈+39% YoY) and $2.15 adjusted EPS, beat consensus, issued 2026 revenue guidance well above street estimates and introduced $6B 2028 revenue/strong margin targets. This is the headline catalyst for the rally. Axon reports Q4 2025 revenue of $797 million
• Positive Sentiment: AI is driving bookings and product demand — Management emphasized AI features across cameras, license-plate readers and evidence management that are accelerating deployments and bookings, helping convert device customers into higher‑margin software subscribers. Taser Maker Axon Says Its Business Is Being ‘Supercharged by AI.’
• Positive Sentiment: Government spending and enterprise demand tailwinds — Reports cite strong device and software demand from federal and public‑safety customers (including DHS initiatives) that support the company’s growth runway. Axon shares rise as Taser-maker’s profit gets boost from government spending
• Positive Sentiment: Some sell‑side firms maintain buy ratings — Several analysts reiterated bullish views or maintained Buy ratings based on the AI-driven platform and long-term targets, supporting the upside narrative. Axon: AI-Driven Platform Strength and Long-Term Growth Targets Support Buy Rating
• Neutral Sentiment: Earnings call and presentation available — Full Q4 earnings call transcript and slides were posted; useful for digging into bookings, margin cadence and product adoption metrics. Axon Enterprise, Inc. (AXON) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Short‑interest data reported but inconclusive — A February short‑interest entry shows zero/NaN values and a 0.0 days ratio, which appears to be a data anomaly and shouldn’t be treated as meaningful without confirmation from exchange filings.
• Negative Sentiment: Analysts trimmed price targets despite the beat — Several firms cut targets after the print (UBS, Barclays, Morgan Stanley, Piper Sandler noted cuts in coverage summaries), which can moderate upside expectations even though many kept overweight/buy ratings. These Analysts Cut Their Forecasts On Axon After Q4 Results

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on AXON shares. Craig Hallum reiterated a “buy” rating and issued a $820.00 target price on shares of Axon Enterprise in a research report on Wednesday. Royal Bank Of Canada cut their price objective on Axon Enterprise from $860.00 to $735.00 and set an “outperform” rating for the company in a report on Wednesday. Morgan Stanley decreased their price objective on Axon Enterprise from $713.00 to $675.00 and set an “overweight” rating on the stock in a report on Wednesday. The Goldman Sachs Group dropped their target price on Axon Enterprise from $940.00 to $800.00 and set a “buy” rating for the company in a research report on Wednesday, November 5th. Finally, Barclays reduced their price target on shares of Axon Enterprise from $702.00 to $682.00 and set an “overweight” rating on the stock in a research report on Wednesday. Sixteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $762.93.

Insiders Place Their Bets

In other Axon Enterprise news, CEO Patrick W. Smith sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $551.92, for a total value of $5,519,200.00. Following the completion of the sale, the chief executive officer owned 3,110,997 shares in the company, valued at approximately $1,717,021,464.24. The trade was a 0.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Jennifer H. Mak sold 1,134 shares of the firm’s stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $600.00, for a total transaction of $680,400.00. Following the completion of the transaction, the chief accounting officer owned 13,740 shares in the company, valued at $8,244,000. This represents a 7.62% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 48,040 shares of company stock worth $27,249,338. 4.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Axon Enterprise

A number of hedge funds have recently modified their holdings of AXON. NEOS Investment Management LLC boosted its stake in shares of Axon Enterprise by 82.7% in the third quarter. NEOS Investment Management LLC now owns 25,369 shares of the biotechnology company’s stock worth $18,206,000 after acquiring an additional 11,482 shares during the period. Vanguard Group Inc. lifted its holdings in Axon Enterprise by 4.2% in the 3rd quarter. Vanguard Group Inc. now owns 9,314,164 shares of the biotechnology company’s stock worth $6,684,217,000 after purchasing an additional 376,904 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in Axon Enterprise by 3.3% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 184,423 shares of the biotechnology company’s stock worth $132,349,000 after purchasing an additional 5,953 shares during the period. BIT Capital GmbH boosted its stake in Axon Enterprise by 75.6% in the 3rd quarter. BIT Capital GmbH now owns 3,535 shares of the biotechnology company’s stock worth $2,537,000 after purchasing an additional 1,522 shares during the period. Finally, Wealthedge Investment Advisors LLC grew its holdings in Axon Enterprise by 180.7% during the 2nd quarter. Wealthedge Investment Advisors LLC now owns 1,204 shares of the biotechnology company’s stock valued at $997,000 after buying an additional 775 shares in the last quarter. Hedge funds and other institutional investors own 79.08% of the company’s stock.

Axon Enterprise Stock Performance

The firm’s 50-day moving average price is $539.22 and its 200-day moving average price is $628.00. The company has a debt-to-equity ratio of 0.57, a current ratio of 3.12 and a quick ratio of 2.89. The stock has a market cap of $41.05 billion, a P/E ratio of 342.23, a PEG ratio of 13.33 and a beta of 1.48.

About Axon Enterprise

Axon Enterprise, Inc develops technology and weapons systems for public safety and law enforcement agencies, combining hardware, software and cloud services. The company’s hardware portfolio includes conducted energy weapons (commonly known as TASER devices), body-worn cameras and in-car camera systems. Axon pairs these devices with a suite of connected products and accessories designed to capture, store and manage field evidence.

Beyond hardware, Axon operates a subscription-based software platform for digital evidence management, evidence review and records management.