We came across a bullish thesis on Axon Enterprise, Inc. (AXON) on Hidden Market Gems’ Substack. In this article, we will summarize the bulls’ thesis on AXON. Axon Enterprise, Inc. (AXON)'s share was trading at $750.36 as of 30^th May. AXON’s trailing and forward P/E were 180.68 and 109.89 respectively according to Yahoo Finance.

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Axon Enterprise, Inc. (NASDAQ: AXON), a dominant player in law enforcement technology, has continued its strong growth trajectory, posting a 32.7% revenue increase over the past year.

The company has strategically broadened its market presence by deeply integrating artificial intelligence (AI) across its suite of products, enhancing both the efficiency and effectiveness of its offerings. This includes the application of AI in body cameras, real-time evidence management, and automated reporting systems, which streamline workflows for public safety agencies. Axon’s core value proposition lies in its ecosystem-based approach—connecting devices, software, and data analytics into a seamless platform that serves as the digital backbone for law enforcement and public safety.

With its TASER segment maintaining a high margin and strong demand profile, and its cloud-based software offerings—like Evidence.com and Axon Records—rapidly scaling, the company has created a recurring revenue model with significant operating leverage. Its expansion into adjacent markets, including federal agencies, international clients, and even private security, is accelerating, supported by a robust backlog and multi-year contracts that enhance visibility into future revenue.

Management has signaled that the long-term vision includes transforming Axon into a global public safety operating system, leveraging AI not only for reactive policing but for predictive and preventative solutions. As margins expand and high-value contracts increase, Axon’s scalable infrastructure and continued innovation are likely to fuel further multiple expansion.

Given its clean balance sheet, recurring revenue base, and growing addressable market, Axon represents a high-quality compounder with a long runway for growth and a strong risk/reward profile at current levels.

Previously, we have covered AXON in March 2025 wherein we summarized a bullish thesis by RandorCapital on Twitter. Axon Enterprise (AXON) surged ~13% post-Q4 after posting strong results and issuing upbeat 2025 guidance, implying ~25% revenue growth with potential upside into the mid-30% range. Growth was driven by expansion across international, federal, and enterprise markets, record bookings, and strong demand for new AI and robotics offerings. With 123% NRR, a $10B bookings backlog, and sustained "Rule of 50" performance, Axon reaffirmed its position as a high-growth compounder. Since our last coverage, the stock is up 43%.