Axon Enterprise, Inc. — Cyborg Score 7/10

Strong
Public Safety Technology / Law Enforcement Software & Hardware

Strategic Profile

Axon's Software and Sensors segment achieved 41% growth in subscriptions with Annual Recurring Revenue of $1.25 billion and a positive net revenue retention rate of 124%. Through acquisitions of Prepared and Carbyne, Axon expanded its total addressable market by $5 billion to $159 billion. The company leverages AI through products like Draft One that writes police reports from body camera footage, reinforcing its competitive advantages as a one-stop shop for law enforcement.

Cyborg Score Rationale

Axon demonstrated strong financial performance with Contracted Bookings growing 39% to $11.4 billion and year-over-year sales increasing 31% to $711 million. However, the company faces challenges including a recent 30% drop in share price and projected 19.71% decline in EPS for Q4 2025. 14 analysts give Axon Enterprise a Buy consensus rating as of Feb 9, 2026.

Top Insights

  • Axon delivered one of the strongest revenue growth streaks in its history, with revenue growth above 30% in the last seven quarters and in 14 of the last 15 quarters
  • Annual Recurring Revenue reached $1.25 billion with a positive net revenue retention rate of 124%, indicating strong customer retention and expansion
  • Axon is expanding its body-worn cameras to UK fire stations and redeeming convertible notes, aiming to enhance capital structure and growth potential
  • According to current analyst ratings, AXON has 18 Buy ratings, 2 Hold ratings, and 0 Sell ratings

Named Competitors

  • TASER — Conducted energy devices and self-defense solutions
  • Motorola Solutions Police Cameras — Police body cameras and mobile computing
  • Panasonic Body Cameras — Body-worn camera systems for law enforcement
  • Drafting Software (Police Reports) — AI-powered police report writing solutions

Recent Developments

  • (February 2026) Redeemed 0.5% convertible notes due 2027 at 100% principal, simplifying capital structure
  • (Q3 2025) Raised full-year revenue guidance to $2.74 billion, reflecting 31% annual growth
  • (January 2026) Stock declined 4% in 2025, first annual decline in ten years after doubling in second half of 2024

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