Axon Enterprise (AXON) stock is up more than 20% at the time of writing after the TASER maker posted a blowout Q4 release, adding it will more than double its revenue to $6 billion within three years. The post-earnings rally has AXON challenging a key resistance coinciding with its 50-day moving average (MA) on Feb. 25. A decisive break above $539 may accelerate upward momentum in the near term.
Despite their meteoric run on Wednesday, Axon shares remain down some 18% versus their year-to-date high, presenting an exciting opportunity for long-term investors to load up on a quality name at a discount.
Should You Invest in Axon Stock Today?
Axon Enterprise saw its revenue print at $797 million in the fourth quarter — up a remarkable 39% versus last year — but the real story is embedded in its evolving software ecosystem.
In Q4, net revenue retention hit a whopping 125%, proving existing customers aren’t just staying — they’re spending even more on the company’s offerings.
Despite a cosmic rally, AXON stock remains attractive as its “AI Era Plan” is no longer a concept only; it’s evolved into a cash cow. In fact, artificial intelligence (AI)-driven products like Draft One have successfully become the fastest-growing launches in AXON’s history.
By integrating body-cam audio with automated report drafting, Axon has effectively locked police departments into a high-margin SaaS loop that’s increasingly difficult for competitors to break.
How High Could AXON Shares Fly in 2026?
RBC Capital Markets was quick to validate the market’s enthusiasm, reiterating its “Outperform” rating on Axon Enterprise following its blockbuster Q4 report.
The investment firm cited a staggering $14.4 billion in future contracted bookings and a successful pivot into international markets and the 911-dispatch sector for its constructive view on AXON.
According to its analysts, the Nasdaq-listed giant’s proprietary “data moat” and its forecast for 30% growth make its year-to-date pullback an “attractive entry point” for long-term investors.
While valuation concerns still made RBC lower its price target on Axon shares to $735 today, its revised price objective still suggests potential upside of about 35% from here.
What’s the Consensus Rating on Axon Enterprise?
RBC Capital Markets isn’t the only Wall Street firm that’s recommending sticking with Axon Enterprise.
The consensus rating on AXON shares sits at “Strong Buy” currently, with the mean target of an even higher $796 signaling potential for a 50% rally from here.
