Axon Enterprise, Inc. AXON is witnessing strong momentum in its Connected Devices segment. Segmental revenues surged 33% year over year in the first quarter of 2026, following an increase of 29.1% in 2025. Strong demand for its next-generation TASER 10 products, counter-drone equipment and virtual reality training services drove its results.
Growing popularity for the company’s advanced body-worn camera, Axon Body 4, also augmented the segment’s growth. With upgraded features such as a bi-directional communications facility and a point-of-view camera module option, this body camera is generating significant demand.
In the first quarter, revenues from the company’s TASER product line increased 19% year over year, driven by TASER 10, while those from the Personal Sensors surged 23%, led by Axon Body 4. Also, revenues from Platform Solutions product line soared 95%, supported by counter-drone, virtual reality and fleet.
Growing instances of terrorism and criminal activities, with concerns related to the ever-increasing fraudulent activities, will augur well for Axon’s products in the quarters ahead. Driven by business strength, Axon issued bullish guidance for 2026. It currently expects total revenues to increase approximately 30-32% year over year, higher than 27-30% guided earlier.
Segment Snapshot of AXON's Peers
Woodward, Inc.’s WWD Industrial business segment reported net sales of $387 million in the second quarter of fiscal 2026, up 20% year over year. Woodward generated 35.5% of its total sales from this segment in the quarter. The increase in revenues for Woodward’s segment is primarily attributable to strength across power generation, transportation and oil & gas markets.
Kratos Defense & Security Solutions, Inc.’s KTOS Government Solutions segment’s first-quarter 2026 revenues increased 20.4% year over year to $288.4 million. The segmental revenues were driven by strength in Kratos Defense’s Turbine Technologies, Defense Rocket Systems and Microwave Products businesses. Kratos Defense derived 77.7% of its total revenues from this segment during the quarter.
AXON’s Price Performance, Valuation and Estimates
Shares of Axon have gained 36% in the past three months compared with the industry’s growth of 1.8%.
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From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 58.61X, above the industry’s average of 42.74X. Axon carries a Value Score of F.
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The Zacks Consensus Estimate for AXON’s 2026 earnings has been stable over the past 60 days.
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The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).