Is AXON a good stock to buy? We came across a cheap thesis on Axon Enterprise, Inc. in Rebound Capital’s Substack. In this article, we will summarize the bulls’ view on AXON. The share of Axon Enterprise, Inc. it was $404.92 as of April 21st. AXON’s forward and forward P/E were 267.38 and 54.05 respectively according to Yahoo Finance.
Axon Enterprise, Inc. provides technology solutions for public safety in the United States and internationally. AXON delivered a strong Q4 performance, exceeding expectations in both revenue and EPS, with results highlighting the strength of its integrated hardware and software model. The company reported strong growth in all key segments, with software and services revenue up nearly 40% year-over-year and connected devices revenue up more than 37%, while recurring annual revenue reached $1.35 billion, up 35%.
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Total futures contract bookings have also grown meaningfully, which strengthens the long-term outlook. This performance was supported by accelerating adoption of its ecosystem, where mass offerings drive both customer loyalty and monetization. Previous management guidance also strengthened the outlook, with 2026 revenue growth forecast at 27-30%, above consensus, and a long-term goal of $6 billion in 2028, which means a significant increase from current levels.
A central driver of this momentum is Axon’s AI strategy, specifically its AI Era Plan, which generated nearly $750 million in first-year bookings, or about 10% of the total. This shows that business customers are willing to pay for AI when it is embedded within existing workflows rather than treated as standalone products. The success of this approach is validating the industry-wide shift embraced by companies such as Salesforce, ServiceNow, and Microsoft, which are putting AI capabilities into their established platforms.
Importantly, Axon’s growth and subsequent ~30% stock gain after the acquisition shows that markets are rewarding clear evidence of AI-driven acceleration. The company’s model—where AI enhances rather than disrupts its hardware-software moat—offers a compelling blueprint, suggesting that sustainable AI monetization, coupled with measurable growth or margin expansion, will be critical to the continued rebalancing of the entire software industry.
Previously, we included a bullish thesis to Axon Enterprise, Inc. (AXON) by RadnorCapital in March 2025, which highlighted the company’s continued 30%+ growth, increasing TAM in global, government, and enterprise markets, and strong booking momentum driven by AI-era deals. AXON’s stock price is down about 18.90% since our coverage, driven by valuation pressure following an extended rally driven by AI, combined with margin concerns, acquisition-related costs, legal uncertainty, and more weakness in tech stocks. Rebound Capital shares a similar vision but emphasizes AI monetization and software-driven growth integrated within its ecosystem.
