Axon Enterprise upgraded to buy on strong growth, AI solutions, and solid Q1 results.

Axon Enterprise has been upgraded to a buy rating due to strengthened fundamentals and growth prospects, while its valuation remains stable. The company benefits from AI-driven full-stack solutions and strong international adoption, with over 100% year-over-year international revenue growth. Its Q1 results showed 34% revenue growth, a raised outlook for 2026, and robust demand evidenced by 44% bookings growth and 125% net revenue retention. Despite ongoing tariff pressures, Axon maintains a resilient adjusted EBITDA margin and an improved near-term outlook, making it an attractive investment opportunity.