Axon Enterprise Stock: Is Wall Street Bullish or Bearish?
Scottsdale, Arizona-based Axon Enterprise, Inc. (AXON) provides public safety technology solutions in the United States and internationally. Valued at a market cap of $49.3 billion, the company operates in two segments: Software and Services and Connected Devices, and develops, manufactures, and sells cloud-based software-as-a-service solutions to capture, store, manage, share, and analyze video and other digital evidence.
AXON stock has lagged behind the broader market over the past year, declining 21% compared to the S&P 500 Index's ($SPX) 18.7% surge. Moreover, in 2026, the stock has grown nearly 7%, underperforming the SPX's 12.1% rise.
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Focusing on its industry benchmark, the State Street Industrials Select Sector SPDR ETF (XLI) has risen 17.7% over the past year, outpacing the stock. In 2026, XLI has grown 16.3% and has also rallied the stock.
On Aug. 6, AXON stock tanked 14.3% following the release of its seemingly better-than-expected Q2 2026 earnings. The company's revenue came in at $904.4 million and surpassed the Street's forecasts. Moreover, its adjusted EPS also topped Wall Street's estimates and amounted to $1.88. Despite beating analyst expectations, the company's adjusted EPS figure also represented a significant drop compared to the year-ago quarter's EPS value. That, along with barely breaking even on free cash flow for the quarter, raised several profitability-related red flags for investors, leading to a decline in the stock's price.
For the current year, which ends in December, analysts expect AXON's EPS to increase 63.2% to $2.04 on a diluted basis. The company surpassed the consensus estimate in three of the last four quarters, while missing on one occasion.
Among the 205 analysts covering AXON stock, the consensus is a "Strong Buy." That's based on 14 "Strong Buy" ratings, four "Moderate Buys," and two "Holds."
The configuration has grown more bearish over the past months, with the stock now having 14 "Strong Buy" ratings, down from 15 recorded three months prior.
On Aug. 26, Barclays analyst Tim Long maintained a "Buy" rating for AXON stock and set a price target of $688.
AXON's mean price target of $707.89 offers a 16.5% upside compared to the current market price. Its Street-high target of $830 implies a 36.6% upside from current levels.
