Axon’s Software & Services revenue grew by 39.6% in the first nine months of 2025, driving margin expansion. Despite a Q3 earnings miss, full-year 2025 revenue guidance was raised to approximately 31% growth. Analysts are bullish on Axon, with an average price target of $820 and potential to reach $900 in 2026.

The optimism around Axon is supported by strong fundamentals, including 30.6% year-over-year revenue growth in the most recent quarter. Recent contract wins totaling nearly $25 million further reinforce the company’s growth story, particularly in the Software & Services segment.

Axon trades at a premium compared to the S&P 500, but its high growth rate justifies the valuation. The company’s transition to a recurring revenue model with expanding margins has led to premium multiples. Analysts expect earnings to more than double in the future, driving potential multiple expansion for Axon.

Several factors, including surpassing earnings expectations, strengthening the balance sheet, and overall market performance, could propel Axon to $900 in 2026. The company’s track record of beating estimates, financial strength, and industry trends all point towards the possibility of achieving this ambitious target.

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Read more at Yahoo Finance: Here’s How Axon Shares Can Hit $900 in 2026