Axon Enterprise, Inc. AXON is gaining from continued strength in its Connected Devices segment. Increasing demand for TASER devices, continued adoption of its latest body cameras and strong growth in counter-drone equipment have been supporting the segment’s results.
The ongoing demand for TASER devices is a core component of the segment’s success. AXON continues to benefit from the rising popularity of its next-generation TASER 10 products, which began shipping in 2023. With upgraded features such as a bi-directional communications facility and a point-of-view camera module option, this body camera is experiencing strong orders, boosting the segment’s growth. The company’s ecosystem also continues to expand, with TASER devices serving as less-lethal tools designed to help de-escalate situations.
In the second quarter of 2026, revenues from the company’s TASER product line increased 20.9% year over year. Revenues from Personal Sensors rose 2.8% in the same quarter, driven by continued adoption of Axon Body 4 and higher warranty revenues from a growing installed base. Also, revenues from the Platform Solutions product line soared 122.6%, primarily supported by higher volumes of counter-drone equipment. This boosted the Connected Devices segment’s results, with revenues increasing 34.6% year over year in the second quarter.
With public safety agencies increasingly adopting integrated hardware and software technologies, demand for AXON’s advanced public safety solutions is expected to remain strong. These trends are likely to support the ongoing demand for Axon’s Connected Devices portfolio, positioning the segment well for sustained momentum in the quarters ahead.
Segment Performance of AXON's Peers
Woodward, Inc.’s WWD Industrial business segment reported net sales of $401 million in the third quarter of fiscal 2026, up 26% year over year. Woodward generated 36.1% of its total sales from this segment in the quarter. The increase in revenues for Woodward’s segment is primarily attributable to strong marine demand and an increase in China on-highway sales.
Teledyne Technologies Incorporated’s TDY Digital Imaging segment’s second quarter of 2026 revenues increased 12.7% year over year to $868.7 million. The jump was due to higher sales of infrared imaging detectors, components and subsystems for defense and commercial applications. Teledyne generated 52.3% of its total revenues from this segment in the year.
AXON’s Price Performance, Valuation and Estimates
Shares of Axon have surged 48.1% in the past year compared with the industry’s growth of 2.1%.
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From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 199.82X, above the industry’s average of 41.77X. Axon carries a Value Score of F.
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The Zacks Consensus Estimate for AXON’s 2026 earnings has remained steady 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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