Axon Enterprise (NASDAQ:AXON) Stock Price Down 10.8% – Time to Sell?

Shares of Axon Enterprise, Inc (NASDAQ:AXON) fell 10.8% on Thursday . The company traded as low as $549.40 and last traded at $543.8090. 684,014 shares were traded during trading, a decline of 36% from the average daily volume of 1,065,041 shares. The stock had previously closed at $609.49.

Axon Enterprise News Roundup

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

• Positive Sentiment: Axon reported Q2 revenue of $904 million, up 35.3% year over year and above the roughly $876 million consensus estimate. Adjusted earnings of $1.88 per share exceeded several analyst estimates, while annual recurring revenue rose 39% to $1.6 billion and net revenue retention reached 126%. Axon Q2 2026 Results
• Positive Sentiment: Management raised its full-year 2026 revenue-growth outlook to 32%-34% while maintaining its 25.5% adjusted EBITDA margin target. The improved outlook reflects record bookings, international expansion, and continued demand for software, artificial intelligence and counter-drone products. AXON Q2 Earnings Call Highlights Higher Revenue Outlook
• Positive Sentiment: Growth businesses remained particularly strong: AI Era revenue increased nearly 700%, Platform Solutions revenue climbed 123% to $150 million, and Dedrone revenue surpassed $100 million. Dedrone systems were deployed at all 11 World Cup sites, supporting the counter-drone opportunity. Axon Stock Falls After AI and Drone Wins Fuel Q2 Beat
• Positive Sentiment: William Blair analyst Jonathan Ho reiterated a Buy rating, citing recurring-revenue growth, the expanding AI platform and counter-drone momentum as sources of longer-term upside. Axon Receives Fresh Buy Rating
• Neutral Sentiment: The headline earnings comparison is mixed: $1.88 per share was above some consensus estimates but slightly below the $1.89 Zacks consensus and below $2.12 in the year-ago quarter. This may have contributed to uncertainty despite the revenue beat.
• Negative Sentiment: Gross margin declined as professional services represented a larger mix and Axon invested to scale newer products. Higher memory costs are also expected to pressure near-term margins, while growing inventory raised additional concerns. Axon Posts Lower Quarterly Gross Margin

Wall Street Analyst Weigh In

AXON has been the subject of several research reports. UBS Group cut their price target on Axon Enterprise from $570.00 to $440.00 and set a “neutral” rating for the company in a report on Thursday, May 7th. Piper Sandler reiterated an “overweight” rating and issued a $732.00 price target on shares of Axon Enterprise in a research note on Thursday. Needham & Company LLC reissued a “buy” rating on shares of Axon Enterprise in a report on Thursday. Barclays raised their price objective on shares of Axon Enterprise from $523.00 to $688.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, TD Cowen reaffirmed a “buy” rating on shares of Axon Enterprise in a research report on Wednesday, July 22nd. Thirteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $715.54.

Axon Enterprise Price Performance

The firm has a market capitalization of $43.18 billion, a price-to-earnings ratio of 215.11, a P/E/G ratio of 12.39 and a beta of 1.39. The company’s 50 day moving average is $509.69 and its 200 day moving average is $474.71. The company has a quick ratio of 1.93, a current ratio of 2.27 and a debt-to-equity ratio of 0.49.

Axon Enterprise (NASDAQ:AXON) last posted its quarterly earnings data on Wednesday, August 5th. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.84 by $0.04. Axon Enterprise had a net margin of 6.90% and a return on equity of 3.78%. The firm had revenue of $904.39 million during the quarter, compared to the consensus estimate of $876.42 million. During the same quarter in the previous year, the firm posted $2.12 EPS. The business’s revenue for the quarter was up 35.3% compared to the same quarter last year. On average, equities research analysts anticipate that Axon Enterprise, Inc will post 1.63 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Axon Enterprise news, insider Isaiah Fields sold 2,000 shares of the company’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $400.00, for a total transaction of $800,000.00. Following the completion of the sale, the insider directly owned 52,813 shares in the company, valued at $21,125,200. This represents a 3.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CRO Cameron Brooks sold 1,242 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $500.00, for a total value of $621,000.00. Following the completion of the sale, the executive directly owned 49,710 shares in the company, valued at approximately $24,855,000. This represents a 2.44% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 58,989 shares of company stock valued at $30,527,983 over the last 90 days. 4.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. ABN AMRO Bank N.V. lifted its stake in Axon Enterprise by 107.7% in the 2nd quarter. ABN AMRO Bank N.V. now owns 1,080 shares of the biotechnology company’s stock valued at $604,000 after purchasing an additional 560 shares during the last quarter. Russell Investments Group Ltd. raised its stake in shares of Axon Enterprise by 38.3% during the second quarter. Russell Investments Group Ltd. now owns 145,209 shares of the biotechnology company’s stock valued at $79,947,000 after acquiring an additional 40,214 shares during the last quarter. WPG Advisers LLC lifted its holdings in shares of Axon Enterprise by 108.5% during the second quarter. WPG Advisers LLC now owns 269 shares of the biotechnology company’s stock worth $151,000 after purchasing an additional 140 shares during the period. Mitsubishi UFJ Trust & Banking Corp lifted its holdings in shares of Axon Enterprise by 6.0% during the second quarter. Mitsubishi UFJ Trust & Banking Corp now owns 93,914 shares of the biotechnology company’s stock worth $52,649,000 after purchasing an additional 5,300 shares during the period. Finally, Meridian Wealth Management LLC grew its stake in shares of Axon Enterprise by 24.5% in the second quarter. Meridian Wealth Management LLC now owns 971 shares of the biotechnology company’s stock worth $544,000 after purchasing an additional 191 shares during the last quarter. Institutional investors and hedge funds own 79.08% of the company’s stock.

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.