Software Stocks Rebound, Axon Enterprise a Buy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2026
0mins
Should l Buy AXON?
Source: Fool
- Axon Overview: Axon Enterprise (AXON) focuses on hardware and software products for law enforcement, having performed well over the past decade; however, its stock has dropped about 50% from six months ago, reflecting market volatility's impact.
- Revenue Growth Forecast: Axon's revenue is expected to grow 31% to $2.74 billion in 2025, and despite a current price-to-sales ratio of 14, it is viewed as a solid investment due to its strong competitive advantages and long-term growth potential.
- Stable Customer Base: Axon's clientele primarily consists of state and local law enforcement agencies, which are less inclined to pursue custom AI software, providing resilience during market fluctuations and ensuring continued use of its software suite.
- Atlassian's Challenges: In contrast to Axon, Atlassian (TEAM) achieved a 23% revenue growth in the latest quarter but has seen its stock plummet 72% over the past year due to competitive pressures from AI tools, and it has struggled to achieve GAAP profitability for a decade, warranting caution from investors.
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Analyst Views on AXON
Wall Street analysts forecast AXON stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 559.060
Low
610.00
Averages
800.38
High
925.00
Current: 559.060
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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- Axon Growth: Axon achieved $2.8 billion in revenue for fiscal year 2025, marking a 30% year-over-year increase, and set a target of $6 billion in revenue by 2028, highlighting its strong growth potential in public safety, particularly through its AI platform transformation.
- Vertiv Market Demand: Vertiv's revenue reached $10.2 billion in fiscal year 2025, up 28% year-over-year, with organic orders surging 81%, and the launch of high-density AI data center solutions in 2026 indicates its critical role in data center infrastructure.
- TransMedics Monopoly in Logistics: TransMedics reported $605.5 million in revenue for 2025, a 37% increase, with its organ transport technology accounting for 36% of U.S. liver transplants, showcasing its unique competitive advantage in the organ logistics market.
- Fair Isaac Pricing Power: Fair Isaac's revenue for fiscal year 2025 was $1.99 billion, with a net income of $651.9 million, demonstrating strong profitability and market expansion potential, especially with the introduction of its new FICO Score 10T model.
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- Year-to-Date Gains: Despite today's decline, Old Dominion Freight Line has gained 27.5% year-to-date, suggesting that the company has maintained strong growth momentum over the past period, potentially attracting long-term investor interest.
- Market Dynamics: Among other Nasdaq 100 components today, Marriott International is down 4.7%, while Axon Enterprise is up 1.2%, reflecting varied market reactions to different companies, which may indicate distinct challenges and opportunities within the industry.
- Investor Sentiment: The decline in Old Dominion Freight Line's stock may prompt investors to reassess the overall transportation sector, especially in the context of economic fluctuations, potentially leading to broader market adjustments.
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See More
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- Congressional Scrutiny: Senate Judiciary Chair Chuck Grassley expressed strong dissatisfaction with Noem's enforcement actions, particularly regarding the deaths of two individuals during an immigration crackdown in Minneapolis, emphasizing that 'one death is too many' and reflecting a rigorous examination of law enforcement processes and human rights concerns.
- Funding Crisis: The Department of Homeland Security's funding lapsed last month, with Democrats refusing to support an appropriations bill due to frustrations with the Trump administration's immigration enforcement tactics, despite the department having billions available, indicating significant governmental divisions and financial pressures regarding immigration policy.
- Impeachment Proposal: Democratic Representative Robin Kelly introduced articles of impeachment against Noem in January, accusing her of misconduct in immigration enforcement, which reflects the strong dissatisfaction in Congress with Noem's leadership of the Department of Homeland Security and the scrutiny of her policies.
See More
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- Acquisition Potential Discussion: PayPal's stock has dropped about 40% over the past year, with a market cap now at $43 billion; despite strong profitability, its low growth profile makes it an attractive target for potential acquirers, particularly private equity firms like Silverlake Partners.
- Strategic Asset Value: Venmo, growing at approximately 20% annually, is seen as a key asset for PayPal, which also processes nearly $2 trillion in annual transaction volume, highlighting its significant position in the payment network and attracting potential buyers' interest.
- CEO Change Impact: The appointment of new CEO Enrique Lores has sparked speculation about a potential restructuring or sale of the company; while PayPal has not explicitly stated intentions to sell, market expectations for its future growth remain high.
- Competitive Landscape Analysis: Stripe has been mentioned as a potential buyer, with a valuation around $159 billion, significantly higher than PayPal's; however, the complementary nature of their businesses in the payment sector could make a merger a strategic option, despite potential antitrust scrutiny.
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