Axon Enterprise Reports 41% Annual Recurring Revenue Growth to $1.3 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Source: Fool
- Sales Growth: Axon reported a 31% year-over-year sales increase in Q3, despite a small operating loss and a $2 million net loss, indicating strong demand in the public safety sector and the company's growth potential.
- Long-Term Contract Advantage: The company's annual recurring revenue surged 41% to $1.3 billion in Q3, demonstrating clients' willingness to invest long-term in Axon's ecosystem, which creates a high barrier to entry for competitors.
- Future Contract Bookings: Axon ended Q3 with $11.4 billion in future contracted bookings, reflecting its strong market position in public safety technology and a consistent revenue stream.
- Market Valuation Analysis: With a forward P/E ratio of 61, Axon's high valuation is justified by its excellent performance and long-term growth opportunities, making it an attractive option for long-term investors despite the premium price.
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Analyst Views on AXON
Wall Street analysts forecast AXON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AXON is 800.38 USD with a low forecast of 610.00 USD and a high forecast of 925.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 509.580
Low
610.00
Averages
800.38
High
925.00
Current: 509.580
Low
610.00
Averages
800.38
High
925.00
About AXON
Axon Enterprise, Inc. is a technology company in global public safety. It is building the public safety operating system by integrating a suite of hardware devices and cloud software solutions that lead modern policing. Its segments include Connected Devices and Software & Services. Connected Devices segment includes the development, manufacture and sale of fully integrated hardware solutions such as conducted energy devices (CEDs), body cameras, drones, accessories, extended warranties and other hardware products. Software & Services segment includes the development and sale of fully integrated cloud-based software solutions such as Axon Evidence, Records Management System, Draft One and other software and services that enable law enforcement to securely store, manage, share and analyze video and manage operations. Its global customer base includes first responders across international, federal, state and local law enforcement, fire, corrections and emergency medical services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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