Axon Stock Is On Fire, But Here's the Bad News

MrDecoder · 2026-02-26T20:51:39+00:00

Axon experienced strong fourth-quarter growth exceeding 30%, yet this growth negatively impacted profitability. Investor concerns arise regarding current valuations and management's compensation, amidst a surge in product backlog.

MrDecoder

2026-02-26 20:51:39

Abstract generation in progress

Axon (AXON +4.42%) reported great growth again in the fourth quarter, but that came at the expense of profitability. This isn’t a new challenge for Axon, which has compounded revenue growth in excess of 30% for years, but it does raise questions about what investors should think about the current multiples and management’s stock-based compensation. I covered all of this, including how new products have led to a big increase in backlog, in the video below.

*Stock prices used were end-of-day prices of Feb. 25, 2026. The video was published on Feb. 26, 2026.

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