Axon Q3 Preview: Can AI and Cloud Keep the Momentum?

Axon Enterprise AXON reports third-quarter 2025 results after the market closes on November 4. Analysts expect earnings per share of $1.52 on roughly $704 million in revenue, pointing to another quarter of growth of

about 30% year over year. The stock is up around 21% so far this year, extending a multi-year run that has made Axon one of the strongest performers in the broader defense and public-safety technology space.

In the second quarter, Axon reported $669 million in revenue, up 33% YoY, and adjusted EBITDA of $172 million, with margins holding above 27%. The company continued to benefit from global adoption of its Taser 10 platform and recurring software subscriptions tied to its Evidence.com cloud ecosystem. Management also raised its full-year revenue outlook to $2.65$2.73 billion.

For this quarter, attention will be on margins, recurring revenue, and product mix. Investors want to see whether gross margin holds near 60% as software keeps lifting overall profitability. Updates on Axon Cloud, AI-powered evidence tools, and international contracts will also matter. The company has invested heavily in AI features designed to cut down officers' reporting time (potentially reducing it by up to 40%), and investors will watch for updates on adoption and agency feedback.

After several years of consistent execution, expectations are high. A strong quarter and reaffirmed guidance could push the stock higher into year-end, while any margin weakness or softer bookings could invite a breather after its extended run.