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Will Axon's AI-Driven Platform Continue to Enhance Community Safety?
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Key Takeaways
AXON's Software & Services segment's revenues grew 39% in Q1 2025, following 33.4% growth in 2024.
AI tools like Draft One and Redaction Assistant are gaining traction among public safety agencies.
Nearly 70% of U.S. users are still on basic plans, signaling strong upgrade potential for AXON.
Axon Enterprise, Inc. (AXON - Free Report) is strengthening its position in the public safety technology space with its Artificial Intelligence (AI) powered software platform. The company’s AI tools are developed and delivered through the Software & Services segment, which plays a key role in equipping public safety professionals with technology that enhances response times and reduces risks.
This segment has been a major growth driver for AXON, with revenues rising 39% year over year in the first quarter of 2025, following a 33.4% year-over-year increase in 2024. A growing number of agencies are adopting Axon’s AI-powered tools that simplify workflows and improve decision-making in the field.
Among these innovations is Draft One, an AI-powered report-writing assistant that helps officers write reports faster and more accurately, freeing up time for community engagement. With nearly 30,000 active users, it’s one of Axon’s fastest-growing software products. Another key tool is Redaction Assistant, which uses AI to automatically blur sensitive information in video evidence and cuts redaction time by up to 75%.
These tools are part of premium subscription bundles like Officer Safety Plan 10 (OSP 10), which continue to gain traction. With nearly 70% of Axon’s U.S. user base still on basic plans, there is strong potential for future upgrades.
As AXON continues to expand its AI capabilities and drive adoption through its Software & Services segment, it is well-positioned to play a leading role in building safer, more efficient and better-connected communities in the near term.
Segment Snapshot of AXON's Peers
Among its major peers, Kratos Defense & Security Solutions, Inc.’s (KTOS - Free Report) Government Solutions segment’s first-quarter 2025 revenues increased 10% year over year to $239.5 million. Higher sales of Kratos Defense’s businesses, with the most notable growth in its C5ISR, Defense Rocket Support and Microwave Products units, aided the results. Kratos Defense derived 79.1% of its total revenues from this segment during the quarter.
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 137.9% in the past year compared with the industry’s growth of 48.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 925.57X, above the industry’s average of 51.21X. 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 Axon's AI-Driven Platform Continue to Enhance Community Safety?
Key Takeaways
Axon Enterprise, Inc. (AXON - Free Report) is strengthening its position in the public safety technology space with its Artificial Intelligence (AI) powered software platform. The company’s AI tools are developed and delivered through the Software & Services segment, which plays a key role in equipping public safety professionals with technology that enhances response times and reduces risks.
This segment has been a major growth driver for AXON, with revenues rising 39% year over year in the first quarter of 2025, following a 33.4% year-over-year increase in 2024. A growing number of agencies are adopting Axon’s AI-powered tools that simplify workflows and improve decision-making in the field.
Among these innovations is Draft One, an AI-powered report-writing assistant that helps officers write reports faster and more accurately, freeing up time for community engagement. With nearly 30,000 active users, it’s one of Axon’s fastest-growing software products. Another key tool is Redaction Assistant, which uses AI to automatically blur sensitive information in video evidence and cuts redaction time by up to 75%.
These tools are part of premium subscription bundles like Officer Safety Plan 10 (OSP 10), which continue to gain traction. With nearly 70% of Axon’s U.S. user base still on basic plans, there is strong potential for future upgrades.
As AXON continues to expand its AI capabilities and drive adoption through its Software & Services segment, it is well-positioned to play a leading role in building safer, more efficient and better-connected communities in the near term.
Segment Snapshot of AXON's Peers
Among its major peers, Kratos Defense & Security Solutions, Inc.’s (KTOS - Free Report) Government Solutions segment’s first-quarter 2025 revenues increased 10% year over year to $239.5 million. Higher sales of Kratos Defense’s businesses, with the most notable growth in its C5ISR, Defense Rocket Support and Microwave Products units, aided the results. Kratos Defense derived 79.1% of its total revenues from this segment during the quarter.
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 137.9% in the past year compared with the industry’s growth of 48.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 925.57X, above the industry’s average of 51.21X. 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.