TD Cowen Lifts Axon Price Target to $950 After 53% Q4 Bookings Surge
Zacks Investment Ideas feature highlighted Axon Enterprise alongside Qualcomm and Sandisk with a retrospective on its early 2000s product innovations and adoption. TD Cowen raised Axon’s price target to $950 from $925 after Q4 bookings jumped 53%, forecasting 27%-30% revenue growth for fiscal 2026.
1. Analyst Price Target Increase
On February 25, TD Cowen raised its price target for Axon to $950 from $925 while reaffirming its market-outperform rating, citing strong fourth-quarter bookings growth and robust fiscal 2026 guidance. RBC Capital also highlighted Axon’s diversification into innovative product categories and its leadership in public safety technology, noting resilience against potential AI decentralization risks.
2. Strong Q4 Bookings and Revenue Forecast
Axon reported a 53% increase in Q4 bookings, significantly outpacing expectations, and set fiscal 2026 revenue growth guidance at 27%–30%, above the Street’s 25.5% estimate. The company achieved a 125% net revenue retention rate and accelerated annual recurring revenue growth, underscoring strong customer adoption and upsell opportunities.
3. Software Mix, Net Revenue Retention and Growth Drivers
Analysts expect Axon’s expanding software mix to boost margins as subscription and recurring revenues gain prominence. The firm’s data moats and network effects, combined with its body-worn camera ecosystem and law enforcement software solutions, underpin durable competitive advantages and support entry into new market segments.