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Will Strong TASER Demand Continue to Guide Axon's Connected Devices Unit?
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Key Takeaways
AXON's Connected Devices segment revenues grew 26.1% year over year in Q1 2025.
Growth was led by strong TASER 10 demand and increased sales of handles and cartridges.
Body 4 cameras, VR training and counter drone tech also drove customer demand and revenue gains.
Axon Enterprise, Inc. (AXON - Free Report) is expanding its footprint in the public safety technology space, with the Connected Devices segment playing an important role in overall growth. In the first quarter of 2025, the segment’s revenues surged 26.1% year over year, reflecting strong momentum across its product lines.
The ongoing demand for TASER devices is the core component of the segment’s success. AXON continues to benefit from the rising popularity of its next-generation TASER 10 products, which began shipping in 2023. Revenues from TASER devices increased $30.9 million year over year in the first quarter, driven by the higher volume of TASER 10 handles and cartridges.
Solid demand for virtual reality training services and counter drone equipment continues to support the segment’s growth. Axon launched the next-generation body-worn camera, Axon Body 4, in April 2023, which has added momentum as well. Equipped with enhanced features such as a bi-directional communication facility and a point-of-view camera module option, the product is generating strong customer demand, thus bolstering the segment’s growth. The Connected Devices unit is also benefiting from increased warranty revenues from a higher volume of deployed devices in the field.
With rising global security concerns, including increasing instances of terrorism and criminal activities, demand for advanced public safety technologies is expected to remain strong. These trends are likely to support the ongoing demand for Axon’s Connected Devices portfolio, positioning the segment well for sustained momentum in the quarters ahead.
Segment Snapshot of AXON's Peers
Among its major peers, Kratos Defense & Security Solutions, Inc.’s (KTOS - Free Report) Kratos Government Solutions segment reported net revenues of $239.5 million in the first quarter of 2025, increasing 10% on a year-over-year basis. Kratos generated 79.1% of its total revenues from this segment in the quarter. The revenue improvement for Kratos’ segment can be attributed to notable growth in its C5ISR, Defense Rocket Support and Microwave Products businesses.
Teledyne Technologies Incorporated’s (TDY - Free Report) Digital Imaging segment’s first-quarter 2025 revenues increased 2.2% year over year to $757 million. This was driven by higher sales of Teledyne’s commercial infrared imaging components and surveillance systems. Teledyne derived 52.2% of its total revenues from this segment during the quarter.
AXON’s Price Performance, Valuation and Estimates
Shares of Axon have surged 165.2% in the past year compared with the industry’s growth of 42.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 1,156.40X above the industry’s average of 46.32X. Axon carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AXON’s second-quarter 2025 earnings has been on the rise over the past 60 days.
Image: Bigstock
Will Strong TASER Demand Continue to Guide Axon's Connected Devices Unit?
Key Takeaways
Axon Enterprise, Inc. (AXON - Free Report) is expanding its footprint in the public safety technology space, with the Connected Devices segment playing an important role in overall growth. In the first quarter of 2025, the segment’s revenues surged 26.1% year over year, reflecting strong momentum across its product lines.
The ongoing demand for TASER devices is the core component of the segment’s success. AXON continues to benefit from the rising popularity of its next-generation TASER 10 products, which began shipping in 2023. Revenues from TASER devices increased $30.9 million year over year in the first quarter, driven by the higher volume of TASER 10 handles and cartridges.
Solid demand for virtual reality training services and counter drone equipment continues to support the segment’s growth. Axon launched the next-generation body-worn camera, Axon Body 4, in April 2023, which has added momentum as well. Equipped with enhanced features such as a bi-directional communication facility and a point-of-view camera module option, the product is generating strong customer demand, thus bolstering the segment’s growth. The Connected Devices unit is also benefiting from increased warranty revenues from a higher volume of deployed devices in the field.
With rising global security concerns, including increasing instances of terrorism and criminal activities, demand for advanced public safety technologies is expected to remain strong. These trends are likely to support the ongoing demand for Axon’s Connected Devices portfolio, positioning the segment well for sustained momentum in the quarters ahead.
Segment Snapshot of AXON's Peers
Among its major peers, Kratos Defense & Security Solutions, Inc.’s (KTOS - Free Report) Kratos Government Solutions segment reported net revenues of $239.5 million in the first quarter of 2025, increasing 10% on a year-over-year basis. Kratos generated 79.1% of its total revenues from this segment in the quarter. The revenue improvement for Kratos’ segment can be attributed to notable growth in its C5ISR, Defense Rocket Support and Microwave Products businesses.
Teledyne Technologies Incorporated’s (TDY - Free Report) Digital Imaging segment’s first-quarter 2025 revenues increased 2.2% year over year to $757 million. This was driven by higher sales of Teledyne’s commercial infrared imaging components and surveillance systems. Teledyne derived 52.2% of its total revenues from this segment during the quarter.
AXON’s Price Performance, Valuation and Estimates
Shares of Axon have surged 165.2% in the past year compared with the industry’s growth of 42.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 1,156.40X above the industry’s average of 46.32X. Axon carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AXON’s second-quarter 2025 earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.