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Can Axon Sustain Connected Devices Momentum With Solid Market Demand?

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Key Takeaways

  • Axon Enterprise's Connected Devices revenues rose sharply, driven by strong segment momentum.
  • TASER 10, Axon Body 4 and Platform Solutions posted strong gains, boosting segment performance.
  • Rising terrorism and criminal activity are expected to support continued demand for Axon Enterprise.

Axon Enterprise, Inc. (AXON - Free Report) is benefiting from strong momentum in its Connected Devices segment. Healthy demand for its next-generation TASER 10 products, virtual reality training services and counter-drone equipment has been augmenting the segment’s results. The segment’s revenues increased 26% year over year in the first nine months of 2025.

In April 2023, the company introduced its advanced body-worn camera, Axon Body 4. With upgraded features such as a bi-directional communications facility and a point-of-view camera module option, this body camera is experiencing strong orders, boosting the segment’s growth. Shipment of this body camera began in June 2023 and the customer response has been strong since its launch.

In third-quarter 2025, revenues from the company’s TASER product line increased 17% year over year, driven by TASER 10, while those from the Personal Sensors surged 20%, led by Axon Body 4. Also, revenues from Platform Solutions product line soared 71%, supported by counter-drone, virtual reality and fleet. This boosted the Connected Devices segment’s results, with revenues increasing 23.6% year over year to $405.4 million.

Growing instances of terrorism and criminal activities, with concerns related to the ever-increasing fraudulent activities, will augur well for Axon’s Connected Devices unit in the quarters ahead.

Segment Performance of AXON's Peers

Teledyne Technologies Incorporated’s (TDY - Free Report) Digital Imaging segment’s third-quarter 2025 revenues increased 2.2% year over year to $785.4 million. The jump was due to higher sales of commercial infrared imaging components and subsystems, unmanned air systems and industrial automation imaging systems. Teledyne generated 51% of its total revenues from this segment in the quarter.

Woodward, Inc.’s (WWD - Free Report) Industrial business segment reported net sales of $334 million in the fourth quarter of fiscal 2025, up 10.6% year over year. Woodward generated 33.6% of its total sales from this segment in the quarter. The increase in revenues for Woodward’s segment is primarily attributable to strength across power generation and oil & gas markets.

AXON’s Price Performance, Valuation and Estimates

Shares of Axon have lost 5.4% in the past month compared with the industry’s decline of 1.7%.

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From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 72.32X, above the industry’s average of 43.63X. Axon carries a Value Score of F.

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The Zacks Consensus Estimate for AXON’s 2025 earnings has decreased 8.1% over the past 60 days.

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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.


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