Axon Enterprise

AXON

Aerospace & Defense · Industrials

Also trades as: 0HKE.L

Price

$627.75

+13.49 (+2.20%)

Market Cap

$50.60B

Exchange

NASDAQ

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Strong

Stability

Mixed

Valuation

Good

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Share count rising — dilution

+51.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 66.2M (2021) → 100.0M (2025)

Winston Score History

The full picture

Axon Enterprise makes tools used by law enforcement and public safety agencies. Its most famous product is the TASER, an electric stun device used by police officers instead of firearms. Axon also makes body cameras, in-car cameras, and a cloud software platform called Axon Evidence that stores and manages video footage from those cameras.

Axon makes money by selling hardware like TASERs and cameras, and through recurring software subscriptions for its cloud platform — the subscription side has been growing quickly and now drives a large share of revenue. The company operates primarily in the United States but is expanding internationally. Its competitive moat comes from the combination of hardware, software, and data storage that creates switching costs — once a police department is on the Axon platform, it is difficult to switch. The key growth driver is expanding its software ecosystem beyond cameras into areas like records management and AI-powered tools, while the main risk is government budget constraints limiting law enforcement spending.

Politician Trades

14 trades / 12mo

8 Congressional buys and 6 sells on AXON in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+35.3% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-21.7% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$684M/ year

↑ Rising (+55% vs prior year)

24.6% of revenue

6.2x the sector average (4%)

Investing heavily in future products and technology

Insider Activity

5.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$1.5B cash & investments at current burn rate

Revenue accelerating

Axon Enterprise grew revenue 35% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

60.4%

Premium pricing power — 60.4% gross margin

Profit after running costs

Operating Margin

5.2%

Thin — 5.2% operating margin

Return on the money invested

ROCE

1.6%

Weak — 1.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth

Sales YoY

+34.6%

Fast-growing sales (+34.6% YoY)

Profit growth

EPS YoY

-41.7%

Earnings shrinking (-41.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

133%

Turns 133% of profit into real cash

Spare cash per sale

FCF Margin

4.1%

Thin free cash flow (4.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.47

Conservative — low debt load (0.47)

Covers its interest

Interest Cover

0.73x

Dangerous — barely covers interest (0.7x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit

P/E Ratio (TTM)

252.9x

Expensive — P/E 252.9

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+184.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (252.9 → 68.3)

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Dividends

Not applicable for this business.

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