Shares in Axon Enterprise stock (AXON) are up over 15% on Tuesday, one of the biggest jumps on the US markets. AXON shares took off when the Taser maker exceeded earnings and revenue estimates and boosted its outlook on strong demand for its security products. Its $669 million revenue increased 33% year-over-year, indicating promising potential amongst investors.
Axon also raised its full-year revenue outlook to $2.65 billion to $2.73 billion, up from prior guidance of $2.6 billion to $2.7 billion, compared with the $2.66 billion consensus estimate. The company is making plenty of moves in the dominating AI market as well. Axon recently sealed its largest deal in company history with a major city police department, encompassing a wide range of products from drones to AI solutions.
The solid Q2 earnings and excited upcoming guidance drew investment experts at several firms to revise their forecasts for AXON stock. Raymond James maintained an Outperform rating on Axon and lifted its price forecast to $855 from $645. Meanwhile, UBS reiterated a Neutral rating and raised its forecast to $840 from $820. In addition, Needham reaffirmed its Buy rating and boosted its price forecast to $870 from $820. All of the revisions come as AXON is trading above its 52-week high.
Also Read: Buffett’s Berkshire Down 12% Since Retirement News, Sells $3B
According to Axon President Josh Isner via the company’s earnings call, Axon’s growth “is driven by selling new products to existing customers and expanding into new markets like international and enterprise. The diversified product portfolio and strong pipeline give us confidence in achieving the growth target.” He added, “AI bookings are progressing well, with hands-on product trials proving effective in demonstrating value. Products like Draft One and AI Assist are helping officers spend more time in the field, and the focus remains on practical applications that enhance public safety.”
The stock is trading 15.75% above its 20-day, 13.04% above its 50-day, and 36.98% above its 200-day simple moving averages, reflecting strong short- and long-term momentum. On the flip side, Axon could face challenges in the second half of 2025 that could slow the stock’s growth. Like many big-tech companies, tariffs could play a huge role if they come around again in the coming months. Back in April, Trump’s tariff plan sent the US market crashing, with big tech that relies on operations outside of US soil taking the biggest hits.
