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Investing.com - Raymond James raised its price target on Axon Enterprise (NASDAQ:AXON) to $855 from $645 while maintaining an Outperform rating following the company’s second-quarter 2025 results. The stock, currently trading at $744.88, has delivered an impressive 160% return over the past year. According to InvestingPro analysis, the company shows strong financial health with a "GOOD" overall rating.
The firm noted that Axon’s Q2 results exceeded expectations, driven by strong performance in new products and increased wallet share of core solutions. With impressive gross margins of 60.6% and year-over-year revenue growth of 32.7%, the company reported impressive order volume and management guided to another record second half with estimated orders of approximately $5 billion or more.
Axon’s artificial intelligence business showed significant growth, closing approximately $150 million in AI bookings, with over 30% of total bookings coming from new product categories. The company secured its largest state/local customer deal in history, which included a range of products from drones to AI solutions.
Key performance metrics highlighted in Raymond James’ analysis included 41% year-over-year growth in Annual Recurring Revenue to $1.2 billion, Net Revenue Retention of 124%, and an 8% quarter-over-quarter increase in future contracted bookings to $10.7 billion. International bookings outpaced expectations, including Axon’s largest Taser deal in the Africa region. InvestingPro subscribers can access 16+ additional key insights and a comprehensive Pro Research Report, offering deep-dive analysis of Axon’s valuation and growth metrics.
The company also made inroads into new markets, securing its first gaming customer contract in the Enterprise segment that includes AI components, prompting Raymond James to forecast results above Axon’s raised guidance range. With a market capitalization of $58 billion and trading at a P/E ratio of 171, Axon appears to be trading above its Fair Value according to InvestingPro’s comprehensive analysis.
In other recent news, Axon Enterprise has reported strong financial results for the second quarter of 2025, significantly surpassing expectations. The company achieved non-GAAP earnings per share of $2.12, well above the consensus estimate of $1.44. Revenue reached $668.5 million, marking a 33% year-over-year increase and exceeding the consensus forecast of $641.0 million. Notably, Needham has raised its price target for Axon to $870, maintaining a Buy rating due to the company’s robust quarterly performance. This increase in the price target is attributed to strong AI bookings and the performance of both new and existing products. Additionally, Citizens JMP reiterated a Market Outperform rating with a $825 price target, following Axon’s impressive second-quarter results. These developments highlight the company’s strong financial health and growth trajectory as observed by multiple analyst firms.
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