Axon Enterprise, Inc. (AXON) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Axon Enterprise, Inc.

Updated on October 31, 2026 · accounts published on August 5, 2026

A fast-growing business whose profits and returns have not kept pace with its sales

Axon Enterprise trades at a P/E of 177 over the last 12 months, 587 % above its sector median of 25.8, while revenue grew 34 %.

• Is Axon Enterprise expensive or cheap? The P/E of 177 is 587 % above the sector median of 25.8 but far below its own 8-year average of 750.5.
• How is the business doing? Revenue grew 34 % over the last 12 months, but EPS fell 69 % and the operating margin is just 2.6 %.
• How strong is the balance sheet? Net debt is only $3.70 per share, 0.9 % of the price, and the Altman Z of 8.2 sits deep in the safe zone.
• Does Axon Enterprise turn its margin into cash, and at what multiple of its cycle does it trade? Only 60 % of fiscal 2025 net income became free cash flow, below the 85 % that industrials treat as healthy.
• What to expect from the next earnings? Results are due November 5, 2026; analysts expect EPS of $1.89, and it beat estimates in 7 of the last 8 quarters.

Is Axon Enterprise expensive or cheap?

Over the last 12 months Axon Enterprise trades at a P/E of 177, 587 % above the 25.8 median of 297 industrial peers. Against its own history the picture flips: the eight-year average P/E is 750.5, so today's multiple sits far below its usual level. Those averages come from years of thin profits, so they are a loose anchor. The free cash flow yield of 1.1 % and earnings yield of 1.9 % over the last 12 months show that investors are still paying mostly for growth. The stock is down 42 % over 12 months and trades 42 % below its 52-week high of $738.88.

How is the business doing?

Axon Enterprise is growing fast: revenue rose 34 % over the last 12 months, and revenue per share compounded at 26 % a year over fiscal 2020-2025. Profits have not followed. EPS fell 69 % year on year, and the operating margin of 2.6 % over the last 12 months trails the 4.7 % average for fiscal 2014-2025, after fiscal 2025 closed at −2.2 %. Returns are the weak spot: ROIC of 1.1 % is 8.0 points below the 9.1 % sector median, and it has not topped 10 % in any of the last ten fiscal years. So far, growth has added scale faster than returns.

How strong is the balance sheet?

The balance sheet is the company's firmest ground. Over the last 12 months, debt to equity is 0.50 and the current ratio is 2.15, so current assets cover short-term liabilities more than twice. In fiscal 2025, debt of $24.92 per share was almost matched by $21.23 of cash, leaving net debt of $3.70 per share, 0.9 % of the current price. The one caution comes from weak earnings: net debt is 3.6× EBITDA in fiscal 2025, above the 3× that industrials treat as healthy, a ratio driven by thin EBITDA since the debt itself is modest. An Altman Z of 8.2 keeps it well clear of the 2.99 safe-zone line.

Does Axon Enterprise turn its margin into cash, and at what multiple of its cycle does it trade?

Industrial companies are judged on operating margin and cash conversion because their earnings move with the cycle, and a reported profit only counts once it turns into cash. Here the test is mixed. Free cash flow equalled 60 % of net income in fiscal 2025 against an 85 % healthy mark, the fiscal 2025 operating margin of −2.2 % is far from the 12 % benchmark, and ROIC of 1.1 % trails the 15 % bar. Capex at 4.9 % of revenue sits inside the healthy 4 % to 8 % range, and a Piotroski score of 6 of 9 shows no deterioration. Cycle-adjusted EV/EBITDA of 75.4× is well under its six-year average of 331.6×.

What to expect from the next earnings?

On August 5, 2026, Axon Enterprise reported EPS of $1.88 against $1.84 expected, a 2.2 % beat, and it has topped estimates in 7 of the last 8 quarters. For the results due November 5, 2026, analysts expect $1.89, roughly flat on the last quarter. Expectations are steady: the 2026 EPS consensus moved from $7.71 to $7.68 over the last 30 days across 12 analysts, and the revenue consensus barely changed. Sentiment is lopsided, with 18 of 22 analysts rating it a buy, 4 a hold and none a sell. At a P/E of 177, signs of widening margins may matter more than another small beat.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.