Axon Enterprise Shares Jump 28.6%, Warns of $1.73 B Debt and 65× P/E
Axon Enterprise shares rose 28.6% over the past month, outpacing its sub-industry’s 4.5% gain and the S&P 500’s 3% decline. Connected Devices revenue grew 29.1% while Software & Services climbed 39.6%; management projects 27–30% 2026 revenue growth but faces $1.73 billion debt and a 65.0× forward P/E.
1. Share Price Performance and Technical Levels
Axon Enterprise shares have rallied 28.6% over the past month, significantly outperforming its sub-industry’s 4.5% gain and the S&P 500’s 3% decline. The stock remains below its 52-week high of $885.92 with support near its 52-week low of $396.41 and is trading above the 50-day moving average but below the 200-day.
2. Segment Growth and Financial Guidance
The Connected Devices segment saw a 29.1% revenue increase driven by TASER 10 shipments, body-worn camera upgrades and counter-drone equipment demand, while Software & Services revenue climbed 39.6% on digital evidence management and premium subscriptions. Management forecasts 27–30% revenue growth in fiscal 2026, backed by ongoing investments in AI, drones and robotics.
3. Debt, Costs and Valuation Risks
Operating costs surged in 2025, with cost of sales up 33.3% and SG&A increasing 39.8% due to integration activities, headcount growth and higher compensation. Long-term debt rose to $1.73 billion as of year-end, and the stock trades at a 65.0× forward P/E, above peer averages, posing a valuation risk if growth slows.