AXON's Connected Devices Growth Picks Up: More Upside to Come?
Axon Enterprise, Inc.AXON is benefiting from the persistent strength in its Connected Devices segment. Solid demand for its next-generation TASER 10 products, counter-drone equipment and virtual reality training services has been driving the segment’s performance.
Growth in cartridge revenues, driven by the higher adoption of the TASER products, has also been augmenting the results. With upgraded features such as a bi-directional communications facility and a point-of-view camera module option, the company’s advanced body-worn camera, Axon Body 4, is witnessing strong orders, boosting the segment’s growth.
In the first quarter, revenues from the company’s TASER product line increased 19% year over year, driven by TASER 10, while those from the Personal Sensors surged 23%, led by Axon Body 4. Also, revenues from the Platform Solutions product line soared 95%, supported by counter-drone, virtual reality and fleet. The positive momentum across these product lines boosted the segment’s revenues, which surged 33% year over year in first-quarter 2026, following an increase of 29.1% in 2025.
The demand for Axon’s advanced public safety technologies is expected to remain strong due to growing instances of terrorism and criminal activities globally. This is likely to drive demand for AXON’s Connected Devices portfolio, positioning the segment well for sustained growth in the quarters ahead.
Driven by business strength, Axon issued bullish guidance for 2026. It currently expects total revenues to increase approximately 30-32% year over year, higher than 27-30% guided earlier.
Segment Snapshot of AXON's Peers
Among its major peers, Kratos Defense & Security Solutions, Inc.’s KTOS Government Solutions segment’s first-quarter 2026 revenues increased 20.4% year over year to $288.4 million. This was driven by higher sales of Kratos Defense’s businesses, with the most notable growth in its Turbine Technologies, Defense Rocket Systems and Microwave Products businesses. Kratos Defense derived 77.7% of its total revenues from this segment during the quarter.
Teledyne Technologies Incorporated’s TDY Digital Imaging segment’s first-quarter 2026 revenues increased 7.9% year over year to $816.9 million. The top-line results were driven by increased sales of infrared imaging detectors, components and subsystems, as well as higher surveillance and unmanned air systems. Teledyne derived 52.4% of its total revenues from this segment in the quarter.
AXON’s Price Performance, Valuation and Estimates
Shares of Axon have gained 14.8% in the past month compared with the industry’s growth of 2.3%.
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From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 49.02X, above the industry’s average of 47.05X. Axon carries a Value Score of F.
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The Zacks Consensus Estimate for AXON’s 2026 earnings has decreased 0.4% over the past 60 days.
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The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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