The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 7 | 196.6x | 20.8x | Bottom tier | |
Growth | 47 | 34.0% | 6.1% | Around median | |
Quality | 38 | -1.4% | 6.6% | Bottom tier | |
Safety | 62 | 15.3x | 0.7x | Around median | |
Capital Return | 25 | — | 2.02% | Bottom tier | |
Momentum | 26 | -42.9% | 4.1% | Bottom tier | |
Sentiment | 48 | 13 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Axon Enterprise, Inc. is a public safety technology company that builds an ecosystem combining connected hardware, software, cloud services, and artificial intelligence for law enforcement agencies, enterprises, and international markets. The company generates its revenue from devices such as TASER 10, Body 4, and Axon Body Mini, and from software and services such as Evidence.com, Fusus, Axon 911, Axon Assistant, and Draft One, in addition to counter-drone solutions through Dedrone. The company’s commercial philosophy, as management described it on the May 6, 2026 call, is based on selling an integrated system rather than standalone tools, where the value of cameras, sensors, and data increases when they are connected to real-time operations and secure artificial intelligence authorized for government use.
In the first quarter of fiscal 2026, Axon recorded revenue of $807.3 million, gross profit of $477.3 million, net income of $169.3 million, and earnings per share of $2.05. That equates to a gross margin of roughly 59.1% and a net income margin of roughly 21.0%, while the company said revenue rose 34% year over year, the ninth consecutive quarter of growth above 30%. In terms of mix, software and services revenue reached $355 million, up 35%, and connected devices revenue reached $453 million, up 33%, making growth distributed between subscriptions and the cloud platform on one hand, and connected hardware on the other.
Operating figures in the same quarter showed an expansion in the recurring revenue base and future obligations: ARR reached about $1.5 billion, up 35%, net revenue retention was 125%, and future contracted bookings rose 44% to $14.3 billion. International revenue also represented 20% of quarterly revenue after growth of more than 100% year over year, while management said U.S. public safety, international, and enterprise markets all achieved record bookings in the first quarter. The company raised its revenue growth outlook for the year to a range of 30% to 32%, while maintaining its adjusted EBITDA margin target at 25.5% and expecting free cash flow of about $450 million in 2026.
The analyst consensus on AXON is buy, and the average price target is $653, with a high target of $820 and a low target of $440, and the stock appears in the provided data without an average analyst target without needing to mention a specific live price. The published P/E ratio is not available, but the $50.2 billion market capitalization compared with TTM revenue of $2.8 billion means the market is pricing the company for strong and sustained growth in artificial intelligence, Dedrone, and recurring revenue. Therefore, the core valuation sensitivity appears tied to Axon’s ability to maintain growth above 30%, and to convert bookings of $14.3 billion into revenue and higher cash margins.
Figures in the text are as of 2026-07-07; the live price is shown at the top of the page.
Axon sells an ecosystem that combines hardware, software, and services, and is not merely a device company. In the first quarter of 2026, it generated $453 million from connected devices such as TASER 10, Body 4, and Dedrone hardware, and $355 million from software and services such as Evidence.com, Fusus, Axon 911, and artificial intelligence products. Management describes the core value as a unified system that connects sensors, data, and real-time operations, so cameras, TASER, Fusus, Dedrone, and AI Era Plan become more valuable together. This model explains ARR reaching $1.5 billion and a net revenue retention rate of 125% in the quarter.
In the first quarter of fiscal 2026, Axon reported revenue of $807.3 million, gross profit of $477.3 million, and net income of $169.3 million. Earnings per share were $2.05, and gross profit equaled a margin of roughly 59.1%, while the net income margin was about 21.0%. The company said revenue grew 34% year over year, the ninth consecutive quarter of growth exceeding 30%. It also raised its 2026 revenue growth outlook to a range of 30% to 32%, with an adjusted EBITDA margin target of 25.5%.
AI Era Plan has become a focal point because its bookings rose 140% year over year in the first quarter of 2026, while revenue from artificial intelligence products grew by more than 700% from a small base. The ecosystem includes capabilities such as Axon Assistant, Draft One, Axon Vision, Axon Gravity, and Axon 911, and management stated that Axon Assistant exceeded 1 million uses. The company also said almost all large local law enforcement agencies in the United States now include artificial intelligence in their purchases. On the call, executives pointed to a $150 million deal in a major city in the Mid-Atlantic region that included AI Era Plan after city council approval.
Automated analysis for informational purposes only — not investment advice.
Management said major events help showcase Dedrone’s capabilities, but it does not view demand as temporary or limited to events. In the first quarter of 2026, Dedrone bookings rose 500% year over year, and its revenue rose by more than 300%, while Platform solutions grew 95%. Dedrone was used to protect Super Bowl 2026 and the Kentucky Derby, and the company supports U.S. sites linked to the World Cup, but management described the real demand as permanent infrastructure for cities, enterprises, federal agencies, and international entities. It also noted that legislation such as Safer Skies could support multi-year adoption of counter-drone technologies.
The first risk is the relatively high valuation, as the given market capitalization is $50.2 billion versus TTM revenue of $2.8 billion, making the stock sensitive to slowing growth or weaker bookings. There is also clear insider selling activity over three months, with net selling of $25.9 million, 0 purchases and 30 sales, and the latest transaction on June 29, 2026. In addition, the company expects stock-based compensation expense between $590 and $620 million in 2026, with a commitment to average annual dilution of less than 2.5%. The large investment in inventory to address demand, geopolitical risks, and component costs may also pressure working capital if the pace of demand changes.
Growth outside the core market became more visible in the first quarter of 2026, as international revenue rose by more than 100% and represented 20% of revenue. Management said U.S. public safety, international, and enterprise all achieved record bookings in the first quarter, and that some smaller countries are exploring full national adoption of the Axon ecosystem. In enterprise, the company closed a $40 million opportunity in April with one of the world’s largest communications providers, including Fusus, Axon Body Mini, and Axon Outpost. Management stated that Fusus integrates video streams across the customer’s physical assets, while Dedrone adds protection for infrastructure, data centers, and high-value sites.