Axon Stock Is On Fire, But Here's the Bad News
Key Points
Axon's revenue jumped 38.5% in the fourth quarter, well higher than analysts expected.
The problem is, profitability got worse as the company continued investing in sales and marketing.
- 10 stocks we like better than Axon Enterprise ›
Axon (NASDAQ: AXON) reported great growth again in the fourth quarter, but that came at the expense of profitability. This isn't a new challenge for Axon, which has compounded revenue growth in excess of 30% for years, but it does raise questions about what investors should think about the current multiples and management's stock-based compensation. I covered all of this, including how new products have led to a big increase in backlog, in the video below.
*Stock prices used were end-of-day prices of Feb. 25, 2026. The video was published on Feb. 26, 2026.
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Travis Hoium has positions in Axon Enterprise. The Motley Fool has positions in and recommends Axon Enterprise. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
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