Axon Enterprises (AXON) stock ended comfortably in the green on May 7 after the company posted standout Q1 results, featuring a more than 700% increase in revenue from artificial intelligence (AI)-related products. It has since given up some of yesterday's gains.
As management raised its guidance as well to at least 30% growth this year, AXON ripped through its 20-day moving average (MA), indicating bullish momentum may sustain in the near term.
Despite recent gains, however, Axon shares remain down about 35% versus their year-to-date high.
How High Could Axon Stock Fly in 2026?
Other than strong taser demand, AXON’s quarterly print demonstrated successful monetization of new AI features like Draft One.
The Nasdaq-listed firm ended its Q1 with $14.3 billion worth of future contracted bookings (up a remarkable 44%), providing substantial visibility into its growth trajectory.
This made Citizens analysts maintain their “Outperform” rating on AXON stock on Thursday.
And while valuation concerns made them adjust their price target to $700, the revised estimate still signals potential upside of a whopping 65% from here.
Note that Axon Enterprises’ relative strength index (RSI) sits in the mid-50s currently, suggesting significant further room to the upside before the stock hits “overbought” territory.
Options Pricing Remains Bullish for AXON Shares
In Q1, AXON’s counter-drone revenue from its Dedrone acquisition also more than quadrupled on a year-over-year basis.
Options traders are bullish as well since management maintained its guidance for adjusted EBITDA to beat 25% and free cash flow to hit $450 million this year.
The put-to-call ratio on contract expiring mid-September sits at 0.71x currently, with the upper price at $561 indicating potential for about a 31% rally over the next four months.
All in all, Axon stock appears increasingly compelling for the remainder of 2026 as international demand for Taser devices, body cameras, and drone-defense systems accelerates across Europe and Australia.
How Wall Street Recommends Playing Axon Enterprises
Wall Street analysts remain constructive on Axon Enterprises’ transition from a hardware-centric business to an AI-driven software and services platform.
According to Barchart, the consensus rating on AXON shares sits at “Strong Buy,” with the mean price target of $713 signaling potential upside of another 68% from current levels.
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
