Earnings Preview: What to Expect From Axon Enterprise’s Report
With a market cap of $45.6 billion, Axon Enterprise, Inc. (AXON) is a prominent public safety technology company that develops integrated hardware and software solutions for law enforcement agencies, government organizations, and private-sector customers. The Scottsdale, Arizona-based company’s product portfolio includes TASER energy devices, body-worn and in-car cameras, cloud-based digital evidence management software, real-time operations platforms, drones, robotics, and AI-powered productivity tools.
The company is expected to release its fiscal Q3 2026 results soon. Ahead of this event, analysts project AXON to report an EPS of $0.48, a 308.7% rise from a loss of $0.23 in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion.
For fiscal 2026, analysts forecast Axon Enterprise to post EPS of $2.12, up 69.6% from $1.25 in fiscal 2025. Moreover, EPS is projected to surge 121.2% year over year to $4.69 in fiscal 2027.
AXON stock has surged 41.1% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 15.5% return and the State Street Industrial Select Sector SPDR ETF's (XLI) 10.7% gain over the same period.
Axon Enterprise has outpaced the broader market over the past year, thanks to its strong recurring revenue growth, robust sales prospects, and impressive long-term earnings growth. Its annual recurring revenue reached $1.64 billion in the latest quarter, with average year-over-year growth of 36.9% over the past two years, highlighting strong customer demand and greater revenue visibility. Additionally, analysts project revenue growth of 32.1% over the next 12 months, while its five-year annualized earnings per share growth stands at 26.6%, underscoring its ability to translate business expansion into profitability.
Adding to the positive momentum, on Oct. 15, Axon announced new federal contract awards, highlighting growing adoption of its public safety technology. Federal agencies added more than 22,000 body-worn cameras and digital evidence management licenses, while the Department of Homeland Security selected Axon’s Dedrone platform for counter-drone security. Additionally, the Department of Veterans Affairs added more than 1,600 TASER 10 devices for VA police officers, expanding Axon’s presence across federal law enforcement and security operations.
Analysts' consensus view on AXON stock is bullish, with an overall "Strong Buy" rating. Among 20 analysts covering the stock, 15 suggest a "Strong Buy," four give a "Moderate Buy," and one provides a "Hold" rating. The average analyst price target is $696.89, suggesting a robust potential upside of 78.6% from current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.