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Is AXON a good stock to buy? We came across a bullish thesis on Axon Enterprise, Inc. on Rebound Capital’s Substack. In this article, we will summarize the bulls’ thesis on AXON. Axon Enterprise, Inc.'s share was trading at $404.92 as of April 21st. AXON’s trailing and forward P/E were 267.38 and 54.05 respectively according to Yahoo Finance.
Axon Enterprise, Inc. provides public safety technology solutions in the United States and internationally. AXON delivered a strong Q4 performance, beating expectations on both revenue and EPS, with results highlighting the strength of its integrated hardware and software model. The company reported robust growth across key segments, with software and services revenue rising nearly 40% year-over-year and connected devices revenue increasing over 37%, while annual recurring revenue reached $1.35 billion, up 35%.
Total future contracted bookings also increased meaningfully, reinforcing long-term visibility. This performance was supported by accelerating adoption of its ecosystem, where bundled offerings drive both customer stickiness and monetization. Management’s forward guidance further strengthened the outlook, with 2026 revenue growth projected at 27–30%, above consensus, and a long-term target of $6 billion in annual revenue by 2028, implying substantial scaling from current levels.
A central driver of this momentum is Axon’s AI strategy, particularly its AI Era Plan, which generated approximately $750 million in first-year bookings, or roughly 10% of total. This demonstrates that enterprise customers are willing to pay for AI when embedded within existing workflows rather than treated as standalone products. The success of this approach validates a broader industry shift adopted by companies such as Salesforce, ServiceNow, and Microsoft, which are layering AI capabilities onto their established platforms.
Importantly, Axon’s growth and subsequent ~30% stock appreciation post-earnings indicate that markets reward clear evidence of AI-driven acceleration. The company’s model—where AI enhances rather than disrupts its core hardware-software moat—offers a compelling blueprint, suggesting that sustainable AI monetization, coupled with measurable growth or margin expansion, will be critical for continued re-rating across the software sector.
Previously, we covered a bullish thesis on Axon Enterprise, Inc. (AXON) by RadnorCapital in March 2025, which highlighted the company’s sustained 30%+ growth, expanding TAM across international, federal, and enterprise markets, and strong bookings momentum driven by AI-era deals. AXON’s stock price has depreciated by approximately 18.90% since our coverage, driven by valuation compression following an extended AI-driven rally, compounded by margin concerns, acquisition-related costs, legal uncertainties, and broader weakness in tech stocks. Rebound Capital shares a similar view but emphasizes AI monetization and bundled software-driven growth within its ecosystem.
Axon Enterprise, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held AXON at the end of the fourth quarter which was 61 in the previous quarter. While we acknowledge the risk and potential of AXON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AXON and that has 10,000% upside potential, check out our report about this cheapest AI stock.