AXON (Axon Enterprise, Inc.): Themes, ETFs, and Basket Ideas
AXON is the ticker for Axon Enterprise, Inc.. This page covers what the company does, where it's heading, its approximate earnings and valuation, key competitors, the themes it belongs to, the ETFs that hold it, and similar stocks worth looking at.
What does Axon Enterprise, Inc. do?
Axon Enterprise (formerly TASER International) is the dominant supplier of body-worn cameras, in-car video, and conducted electrical weapons (TASERs) to law enforcement worldwide. The company also operates Axon Evidence (Evidence.com), the cloud-based digital evidence management platform that integrates video, audio, and case records, and Axon Records (records management system). Each Axon hardware device generates data that gets stored, processed, and analyzed in Axon's cloud platform, creating a recurring SaaS revenue stream.
The business model is structurally subscription-heavy: hardware (cameras, TASERs) is sold to law enforcement agencies but the larger long-term revenue comes from cloud storage subscriptions, analytics, and increasingly AI-driven features (auto-redaction, transcription, summarization). Founded in 1993 by Rick Smith, headquartered in Scottsdale, Arizona. Rick Smith is still CEO and the company's largest individual shareholder.
Where is Axon Enterprise, Inc. heading?
1. AI-powered features.
Axon has been aggressively shipping AI features: automatic transcription of officer body-cam audio, auto-redaction of faces and license plates, AI-assisted report writing (Draft One product), and predictive analytics. These features are sold as premium SaaS subscriptions that materially increase revenue per officer.
2. International expansion.
While the US is the largest market, Axon has been expanding into European and other international law enforcement agencies. The product portfolio adapts to local requirements; international growth has been a meaningful contributor.
3. Enterprise and private security adjacencies.
Axon has expanded beyond law enforcement into corporate security, retail loss prevention, and other adjacent markets. These markets are smaller but provide diversification away from the public safety budget cycle.
4. Justice agency adjacencies.
Axon Records and Axon Standards are expanding into prosecutor offices, courts, and other justice agencies. Each new product category extends the relationship with existing law enforcement customers.
Risks worth tracking: Public sector budget cycles affect short-term revenue. Regulatory debates around law enforcement technology (facial recognition, predictive policing) constrain some product features. Competition from Motorola Solutions in body-worn cameras has intensified.
Earnings and valuation (approximate, early 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Axon Enterprise, Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$2.5 billion
- Operating margin: ~25% (non-GAAP)
- Net income (TTM): ~$400 million (GAAP)
- EPS (TTM): ~$5.20
- P/E (TTM): ~120x (GAAP); ~80x (non-GAAP)
- Price to sales: ~25x
- Dividend yield: None
- Free cash flow: ~$400 million annually
- Cloud and services revenue: Growing 30%+ year over year
Axon trades at one of the highest valuations in public sector software, reflecting the dominant position in law enforcement video and TASERs, the high-margin SaaS conversion, and the AI feature roadmap. The premium embeds high expectations and is sensitive to budget cycles.
Themes AXON belongs to
These are the investment theses AXON naturally fits into. Each links to a full theme guide listing every other stock that belongs and the ETFs commonly used as a passive proxy.
ETFs that hold AXON
If you want AXON exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.
| ETF | Name | % in AXON | Expense ratio | |
|---|---|---|---|---|
| ITA | iShares US Aerospace & Defense ETF | ~4.2% | 0.40% |
AXON's competitors
Body-worn cameras and law enforcement video
Motorola Solutions (after acquiring WatchGuard and others) is the primary direct competitor and has expanded aggressively into Axon's core market. Smaller specialty competitors include Reveal and various international body-cam vendors.
Conducted electrical weapons (TASERs)
Axon is essentially the monopoly supplier of conducted electrical weapons. The market is mature; TASER replacement cycles and upgrade revenue drive ongoing demand.
Digital evidence management
Motorola Solutions CommandCentral, Tyler Technologies, Hexagon's safety and security platform, and various specialty competitors compete in evidence management software. Axon's Evidence.com benefits from being bundled with the dominant body-cam hardware.
Similar stocks
Other names that show up alongside AXON in the same themes. Worth a look if you're thinking about diversification within a single thesis rather than concentration on one ticker.
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Using AXON in a Walnut basket
The most useful question to ask about a single stock is rarely “will it go up?”. It's “does this fit a thesis I actually believe in, and how do I size it alongside other stocks that fit the same thesis?” That's what Walnut is built for.
Open the AI assistant on Walnut and describe a thesis (for example: “the AI infrastructure buildout”, “dividend growth large-caps”, “global semiconductors”) where AXON would naturally fit. The AI proposes 5 to 6 constituents with target weights, you review, and you can fund the basket through your broker once you're ready.
Build a basket around AXON with Walnut
Use Axon Enterprise, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is Axon's ticker symbol?
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AXON, listed on Nasdaq. Officially Axon Enterprise, Inc. (formerly TASER International). Founded 1993 by Rick Smith, headquartered in Scottsdale, Arizona. The company renamed from TASER International to Axon Enterprise in 2017 to reflect its broader platform identity.
Who are Axon's competitors?
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In body-worn cameras and law enforcement video: Motorola Solutions (after acquiring WatchGuard and others) is the primary direct competitor. In conducted electrical weapons: Axon is essentially the monopoly supplier. In digital evidence management software: Motorola CommandCentral, Tyler Technologies, Hexagon's safety platform.
Is Axon a good growth stock?
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Yes, by most metrics. Revenue has grown 25-30% year over year consistently, driven by both hardware (body cameras, TASERs) and especially cloud and services (Evidence.com, AI features). Cloud and services revenue is growing 30%+ and now contributes meaningful operating leverage. The dominant position in public safety video is a structural advantage.
What is Axon's P/E ratio?
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Approximately 120x trailing twelve months on GAAP earnings as of early 2026; approximately 80x on non-GAAP. Among the highest valuations in public sector technology, reflecting the dominant market position, the AI feature roadmap, and durable 25%+ revenue growth.
What does Axon do?
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Axon provides body-worn cameras, in-car video, and conducted electrical weapons (TASERs) to law enforcement, plus the Axon Evidence cloud platform (Evidence.com) for digital evidence management and Axon Records (records management system). Newer AI features include auto-transcription, auto-redaction, and AI-assisted report writing through the Draft One product.
Who owns the most Axon stock?
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Founder and CEO Rick Smith retains a meaningful personal stake (around 3-4% of shares outstanding). Major institutional holders include Vanguard, BlackRock, and various public safety and growth-focused funds. Insider alignment with founder is meaningful.
Is Axon a defense stock?
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Partially. Axon's primary customers are law enforcement (police, sheriffs, federal LE agencies), not military. The company is included in ITA (aerospace and defense ETF) at ~4.2% because its products serve the broader public safety / national security category. Defense-themed funds include AXON as part of the modernization narrative.
Which ETFs have the most Axon exposure?
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ITA (iShares US Aerospace & Defense) holds AXON at ~4.2%, one of its larger holdings outside the major defense primes. PPA (Invesco Aerospace & Defense) holds AXON at similar weight. QQQ holds AXON at ~0.5% (added to Nasdaq-100 in 2024). VOO holds AXON at ~0.2%. Specialty public safety ETFs hold AXON at higher concentrations.
Which thematic baskets typically include Axon?
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One theme on Walnut: Defense and modernization (body cameras, TASERs, and the dominant digital evidence platform for law enforcement). AXON is the largest growth-tilted name in the theme, complementing more mature defense exposures like PLTR.
How much of ITA is Axon?
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Approximately 4.2% as of early 2026. AXON is typically the sixth or seventh-largest ITA holding, behind only the major defense primes (RTX, Boeing, Lockheed Martin, General Dynamics, Northrop Grumman). The weight reflects Axon's market cap relative to the defense prime base.
Is Axon in the S&P 500?
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Yes. AXON was added to the S&P 500 in May 2024 after meaningful market cap growth. It is now a top-150 S&P 500 holding by market cap. The index inclusion broadened passive ownership materially and was followed by Nasdaq-100 inclusion later in 2024.
What is Axon's market cap?
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Approximately $30 billion as of early 2026. Market cap has grown several multiples since 2022 on consistent 25-30% revenue growth and the AI feature roadmap. AXON is now one of the larger US public safety technology companies by market cap.
Does Axon pay a dividend?
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No. Axon has not paid a dividend historically and has prioritized growth investment plus opportunistic share buybacks. Given the growth-focused capital allocation and continued R&D investment in AI features, dividend initiation is unlikely in the near term.
Should I own Axon directly or through ITA?
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Both common. Direct AXON gives concentrated public safety video and AI software exposure with full upside on the growth thesis. ITA includes AXON at ~4.2% along with the major defense primes (RTX, LMT, GD, NOC, BA). Many Walnut users hold AXON directly in defense baskets because the growth-tilted thesis is different from the defense prime cash-flow thesis.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Axon Enterprise, Inc.'s investor relations page or your broker before making investment decisions.