On January 6, Northcoast analyst Keith Housum upgraded Axon Enterprise Inc. (NASDAQ:AXON) from Neutral to Buy. Housum set a price target of $742 for the shares.
Earlier, on December 17, Morgan Stanley analyst Meta Marshall had lowered the firm's price target on Axon to $713 from $760. Marshall maintained an Overweight rating on the stock. In a year-ahead outlook, Marshall noted that the AI trade expanded beyond semiconductor stocks in 2025 to include infrastructure companies, which specifically benefited the optical sector. While she believes this momentum can continue through the first half of 2026, Marshall cautioned that investors will need to be more selective for full-year returns.
For the third quarter of 2025, Axon reported total revenue of $711 million. This represented a 31% increase compared to the same period the previous year. The Software and Services segment saw revenue rise 41% to $305 million. The Connected Devices segment grew 24% to $405 million.
The company highlighted the expansion of its ecosystem through the introduction of Axon 911 and the integration of newly acquired companies Prepared and Carbyne. These additions use AI and cloud infrastructure to enhance emergency response and voice communications.
Axon Enterprise Inc. provides public safety technology solutions in the United States and internationally. The company operates through two segments: Software & Sensors and TASER.