AXON

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Axon (NASDAQ:AXON) and its peers. Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs. The 31 aerospace and defense stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 4.6% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8% since the latest earnings results. Providing body cameras and tasers for first responders, AXON (NASDAQ:AXON) develops technology solutions and weapons products for military, law enforcement, and civilians. Axon reported revenues of $904.4 million, up 35.3% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ ARR estimates and an impressive beat of analysts’ EBITDA estimates. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 14.6% since reporting and currently trades at $520.45. We think Axon is a good business, but is it a buy today? Read our full report here, it’s free. Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE:HII) develops marine vessels and their mission systems and maintenance services. Huntington Ingalls reported revenues of $3.42 billion, up 10.9% year on year, outperforming analysts’ expectations by 8.2%. The business had an incredible quarter with a beat of analysts’ EPS estimates. The market seems content with the results as the stock is up 4.2% since reporting. It currently trades at $292.19. Is now the time to buy Huntington Ingalls? Access our full analysis of the earnings results here, it’s free. Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft. AerSale reported revenues of $70.93 million, down 33.9% year on year, falling short of analysts’ expectations by 12.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. As expected, the stock is down 10.6% since the results and currently trades at $5.63. Read our full analysis of AerSale’s results here. Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services. Leonardo DRS reported revenues of $913 million, up 10.1% year on year. This result surpassed analysts’ expectations by 0.9%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. The stock is down 18.8% since reporting and currently trades at $37.80. Read our full, actionable report on Leonardo DRS here, it’s free. Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure. Redwire reported revenues of $117.1 million, up 89.6% year on year. This number beat analysts’ expectations by 8.7%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and full-year revenue guidance slightly topping analysts’ expectations. Redwire scored the fastest revenue growth among its peers. The stock is down 4.7% since reporting and currently trades at $10.22. Read our full, actionable report on Redwire here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Axon Enterprise (NASDAQ:AXON) primarily generates revenue by manufacturing conducted energy devices under its signature brand and providing connected hardware alongside cloud-based digital evidence management software for domestic and international law enforcement agencies. While it finalized two nine-figure contracts with major municipalities and advanced its integration of radar technology into public safety drone systems, it reported an approximately 6% operating margin for the quarter ended June 30, 2026. Booking Holdings (NASDAQ:BKNG) primarily generates revenue by operating a global network of digital platforms that connect everyday consumers with travel service providers for online accommodation bookings, flight reservations, vehicle rentals, and restaurant dining arrangements. It faced ongoing regulatory scrutiny as a designated gatekeeper under European Union regulations and expanded software partnerships for its restaurant reservation platforms. At the same time, it recorded an operating margin of approximately 34% for the quarter ended June 30, 2026. Revenue here refers to the standardized income statement revenue line item, and evaluating this baseline metric provides everyday retail investors with an unfiltered view of the total sales volume flowing into the enterprise before any operating costs, administrative expenses, or taxes are deducted. Data source: Company filings. Data as of Aug. 21, 2026. These are completely different businesses operating at different scales. Still, the market is awarding a much higher price-to-earnings ratio for Axon Enterprise due to its industry leadership in supplying must-have technology for law enforcement. On the other hand, Booking trades at a lower valuation due to slower growth and a more competitive travel reservation market. Much of Axon's past revenue has come from selling hardware (e.g., TASER), but its software services are expanding rapidly. As cloud-based software services become a greater contributor to the top line, margins could expand. Booking could see much higher revenue as it expands its platform to include flights, car rentals, and other travel-related services. But it's unclear whether these add-on services will accelerate its revenue growth rate or merely extend its current trend. Investors should watch whether Booking can continue delivering stronger growth as it executes its "Connected Trip" strategy, or whether Axon can maintain high revenue growth and gradually narrow the gap with the travel reservation leader. Before you buy stock in Axon Enterprise, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Axon Enterprise wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,461!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,307,633!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 26, 2026. John Ballard has positions in Axon Enterprise. The Motley Fool has positions in and recommends Axon Enterprise and Booking Holdings. The Motley Fool has a disclosure policy. Axon Enterprise vs. Booking Holdings: Evaluating Absolute Scale and Sequential Volatility in Quarterly Revenue Trends was originally published by The Motley Fool

Axon Enterprise (NASDAQ:AXON) primarily generates revenue by manufacturing and selling conducted energy devices, on-officer body cameras, and cloud-based digital evidence management software to domestic and international law enforcement agencies. While securing the largest individual device order in its history and signing multiple eight-figure government contracts, it reported an operating margin of approximately 5% for the quarter ended June 30, 2026. Celsius (NASDAQ:CELH) mainly earns revenue by developing, marketing, and distributing sparkling functional energy drinks and liquid nutritional supplements directly to supermarkets, convenience stores, pharmacies, mass merchants, and various fitness channels globally. While initiating a major executive leadership realignment and navigating multiple legal investigations following a recent financial shortfall, it reported an operating profit margin of about 9% for the quarter ended June 30, 2026. Revenue here refers to the standardized income-statement revenue line item, and it remains a critically important foundational metric for individual investors. It measures how much money the business earns from gross sales of products or services before subtracting any overhead costs, operating expenses, or corporate taxes. Image source: The Motley Fool. Data source: Company filings. Data as of Aug. 17, 2026. Axon has shown greater consistency, while Celsius has benefited from acquisitions and growing product sales to scale revenue faster over the last eight quarters. From Q3 2024 through Q2 2026, Axon increased its revenue by 66%. Celsius's quarterly revenue increased 204% over that period. The market often rewards companies that demonstrate greater consistency in revenue and earnings. Axon currently trades at a price-to-earnings ratio of 250 compared to Celsius' 129. The company's consistent growth reflects the steady demand for its public safety products and software services, which inherently build recurring revenue into the business. On the other hand, Celsius is more exposed to shifting consumer preferences for its energy beverages. Celsius competes with many brands, making revenue forecasting more challenging. Axon is a leader in producing public safety hardware and software that it sells to law enforcement agencies. It serves a market that will continue to invest in these tools across strong or weak consumer spending trends, unlike Celsius. However, Celsius is benefiting from its partnership with PepsiCo, which gives the company a major leg up in distribution -- an important advantage for any consumer brand. It still has tremendous opportunities to grow over time, especially through new products or international expansion. Will Axon's steadier demand continue to drive higher revenue, or will Celsius be able to reaccelerate growth and pull ahead? Investors should monitor upcoming quarterly earnings reports from these companies to see how this plays out. Before you buy stock in Axon Enterprise, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Axon Enterprise wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 21, 2026. John Ballard has positions in Axon Enterprise. The Motley Fool has positions in and recommends Axon Enterprise. The Motley Fool recommends Celsius Holdings. The Motley Fool has a disclosure policy. Axon Enterprise vs. Celsius: Comparing Steady Incremental Gains and Historical Volatility in Quarterly Revenue Trends was originally published by The Motley Fool

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. AppLovin stock has fallen sharply in the short term while still showing a very large gain over three years, and the current valuation checks point to neither a clear bargain nor a clear premium. AppLovin has delivered roughly 7x over the past three years, which means many holders are now sitting on sizeable gains even after the recent pullback. Investor expectations for continued growth from the AXON advertising engine can support the current price, while recent revenue shortfalls and analyst downgrades highlight the risk that future growth may fall short of earlier hopes. On Simply Wall St's broader valuation framework, AppLovin scores 4 out of 6 checks, which points to a mixed picture rather than an obviously cheap or clearly expensive stock. The stock's next move may depend on whether recent concerns about growth durability justify a lower valuation or whether the long term earnings potential of AppLovin still supports today's price. Find out why AppLovin's -28.1% return over the last year is lagging behind its peers. The P/E ratio is a useful way to look at AppLovin because the company is currently profitable and widely covered by analysts. Right now AppLovin trades on about 23.9x earnings, which is very close to the broader media industry average of roughly 23.5x. That puts the stock in line with the sector rather than clearly cheap or expensive on a simple sector comparison. Simply Wall St's fair P/E for AppLovin is around 35.3x, based on its growth profile, margins, size and risk factors. This is well above the current multiple. That gap and the large premium to the peer group average of about 50.4x suggest the market is pricing AppLovin below what this framework would expect for its earnings power. Despite the recent downgrades and growth concerns after the revenue miss and guidance update, the P/E still screens as supportive rather than stretched. On the P/E multiple, AppLovin stock currently looks undervalued relative to the earnings level implied by this model. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for AppLovin pick up where this valuation puzzle leaves off by spelling out which future paths for growth, margins and earnings would line up with a much higher or much lower share price than today. Each one sets out a fair value as a clear thesis about AppLovin's business that you can revisit over time to see how well it fits what actually happens, and they sit on the stock's Community page. One of the top community narratives on AppLovin: 51% undervalued Read one of the top narratives on AppLovin Do you think there's more to the story for AppLovin? Head over to our Community to see what others are saying! AppLovin screens as undervalued on the current P/E based framework, although the broader checks are mixed rather than overwhelmingly supportive. The sharp recent move in the share price means sentiment and expectations around the AXON engine now do a lot of the heavy lifting in the valuation. For you as an investor, the key question is whether AppLovin can sustain earnings growth that justifies a sector level multiple or better. The crux of the bull versus bear debate is whether concerns about growth durability prove temporary or whether they point to a lasting ceiling on what the stock should be worth. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include APP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Axon's second quarter results surpassed Wall Street expectations on both revenue and adjusted earnings, but the market reacted negatively, reflecting investor concerns about profitability and the trajectory of margins. Management attributed strong performance to broad-based demand for Axon’s ecosystem, with notable growth in international markets and the rapid scaling of its counter-drone and AI-enabled software segments. CEO Rick Smith pointed to the company’s expanding role in public safety technology, highlighting how the integration of sensors, AI, and connected devices is driving customer wins and reinforcing Axon’s position as a trusted provider. Is now the time to buy AXON? Find out in our full research report (it’s free). Revenue: $904.4 million vs analyst estimates of $875.9 million (35.3% year-on-year growth, 3.3% beat) Adjusted EPS: $1.88 vs analyst estimates of $1.84 (2% beat) Adjusted EBITDA: $242 million vs analyst estimates of $220.4 million (26.8% margin, 9.8% beat) Operating Margin: 5.2%, up from -0.2% in the same quarter last year Annual Recurring Revenue: $1.64 billion (38.5% year-on-year growth, beat) Market Capitalization: $51.69 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Meta Marshall (Morgan Stanley) asked about customer comfort with AI and areas of resistance. CEO Rick Smith acknowledged ongoing concerns around privacy and data security, emphasizing Axon’s investment in oversight and customer trust through auditing tools and advisory councils. Michael Ng (Goldman Sachs) inquired about Dedrone’s sustainability post-World Cup. Smith and Chief Product Officer Jeff Kunins noted persistent demand across enterprise and international markets, with Dedrone’s hardware repurposed for new use cases and ongoing growth beyond single events. Jonathan Ho (William Blair) asked about the scale and scope of large municipal deals versus prior agreements. COO Josh Isner explained that meaningful expansions often include more hardware and software, reflecting a strategy of landing initial contracts and expanding through customer satisfaction. Trevor Walsh (Citizens) questioned the shift in Axon 911 go-to-market strategy. Isner described increased willingness among customers to adopt full-scope solutions upfront, driven by dissatisfaction with existing vendors and the appeal of integrated offerings. David Paige (RBC) asked what drives body camera win-backs. Isner cited reliability, strong user experience, and integration within the Axon ecosystem as key factors, noting that network effects and customer referrals are reinforcing this trend. Looking ahead, the StockStory team will be monitoring (1) the pace of adoption for AI-driven software across both U.S. and international markets, (2) margin recovery as inventory investments moderate and component costs stabilize, and (3) the success of Dedrone and Axon 911 in winning large federal and enterprise contracts. Execution on integrating software with hardware deployments and maintaining customer trust in sensitive areas like data privacy will also be critical signposts. Axon currently trades at $632.50, up from $609.49 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Cellebrite DI (NASDAQ:CLBT), a digital forensics and investigative intelligence software provider, closed at $10.80, down 29.18%. The stock tumbled after Cellebrite cut full-year revenue guidance and reported a quarterly earnings miss. Investors are watching whether the new CEO can stabilize execution and margin trends. Trading volume reached 36.5M shares, coming in about 1355% above its three-month average of 2.5M shares. Cellebrite DI IPO'd in 2020 and has grown 12% since going public. S&P 500 (SNPINDEX:^GSPC) rose 0.65% to 7,799, and the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.82% to 26,805. In digital investigation and intelligence software for law enforcement and enterprise security, Axon Enterprise (NASDAQ:AXON) closed at $615.59, up 2.64%, while NICE (NASDAQ:NICE) finished at $105.25, higher by 6.79%. Cellebrite grew sales by 16% in Q2, but these figures fell short of analysts’ expectations, while EPS was in line. The real issues for Cellebrite were that management lowered guidance to 19.5% sales growth in Q3 and 15% growth in 2026, and that net income dipped compared to last year. Typically, for growth stocks, the market may be willing to sacrifice slowing growth in the name of higher profits (or vice versa), but both, at the same time, prompt sell-offs like we saw today. That said, the company announced that Shiven Ramji would take over as CEO after serving as President of Technology and Products for Cellebrite since May. Previously, he was the President of Okta’s ID business, so new eyes may help spark a turnaround for the stock’s thus-far underwhelming run since its 2021 IPO. Another silver lining for CLBT shareholders is that its Guardian, Pathfinder & Corellium growth products more than doubled their sales year over year, and the company began monetizing its Genesis AI solution in Q2. Trading somewhere around 30 times FCF after including stock-based compensation, I’d rather see a rebound in growth before I added heavily to CLBT stock, although I love its leadership position in its digital forensics niche. Before you buy stock in Cellebrite, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cellebrite wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. Josh Kohn-Lindquist has positions in Axon Enterprise and Cellebrite. The Motley Fool has positions in and recommends Axon Enterprise, Cellebrite, Nice, and Okta. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 13: Cellebrite Shares Plummet 29% After Missing Earnings, Cutting 2026 Revenue Guidance was originally published by The Motley Fool

Axon Enterprise AXON reported its second-quarter 2026 results on Aug. 5. The public safety technology solution provider’s earnings per share narrowly missed the Zacks Consensus Estimate by 0.5% and declined 13.8% year over year.Total revenues of $904.4 million surpassed the consensus estimate of $868.4 million by 4.2% and increased 35.3% year over year. The second-quarter results benefited from persistent strength in its Connected Devices and Software & Services segments.Backed by strength across end markets, management raised its full-year revenue outlook to 32-34% growth, up from 30-32% expected earlier, while maintaining an adjusted EBITDA margin target of approximately 25.5%. The updated view reflects continued momentum across the company’s connected devices and software offerings.Let's take a closer look at the stock’s fundamentals and assess whether it's the right time to buy. Axon is witnessing strong momentum in its Connected Devices segment. Segmental revenues surged 34.6% year over year in the second quarter of 2026, following an increase of 33% in the first quarter. Strong demand for its next-generation TASER 10 products, counter-drone equipment and virtual reality training services drove its results. Growing popularity for the company’s advanced body-worn camera, Axon Body 4, also augmented the segment’s growth. With upgraded features such as a bi-directional communications facility and a point-of-view camera module option, this body camera is generating significant demand.In the second quarter, revenues from the company’s TASER product line increased 20.9% year over year, driven by TASER 10, while those from the Platform Solutions product line soared 122.6%, supported by counter-drone, virtual reality and fleet. Also, revenues from Personal Sensors increased 2.8%, led by Axon Body 4.AXON is also benefiting from persistent strength in its Software & Services segment.  In the second quarter, the segment’s revenues increased 36.2% year over year. Higher adoption of its premium software offerings, including Axon Fusus, the AI Era Plan and Axon 911, and solid demand for premium add-on features are driving the segment’s growth.Given the rising global demand for Counter-Unmanned Aircraft Systems (CUAS), Axon is also witnessing strong momentum in its Dedrone platform. After witnessing year-over-year growth of 300% in the first quarter, revenues from the Dedrone platform surpassed $100 million in the second quarter. The company also launched Dedrone C2, an upgraded version of the platform. This C2 version comes with enhanced sensor fusion technology, offering stronger detection capabilities.AXON remains focused on strategic collaborations with other companies to expand its product offerings and customer base. In October 2025, Axon’s Dedrone business announced its partnership with TYTAN (a leading provider of interceptor systems for Group 3 drones) to boost detection, identification and mitigation capabilities of counter-drone equipment. The integration of TYTAN’s kinetic interceptor technology enhanced Dedrone’s CUAS mitigation capability, making it suitable to deploy against Group 3 threats. Shares of the company have gained 39.6% in the past six months compared with the industry and S&P 500 composite’s growth of 2.1% and 12.8%, respectively. It has also outpaced other industry players like Teledyne Technologies Incorporated TDY and Woodward, Inc. WWD, which have returned 3.9% and declined 4.4%, respectively, over the said time frame. Image Source: Zacks Investment Research The Zacks Consensus Estimate for AXON’s 2026 earnings per share has been stable at $7.83 in the past 60 days; the same for 2027 has remained unchanged at $10.64. Image Source: Zacks Investment Research The escalating costs and expenses are a concern for Axon’s bottom line. In the first six months of the year, its cost of sales increased 36.9% year over year to $688 million. Selling, general and administrative expenses were $550.1 million, while research and development expenses totaled $397.6 million in the same period, reflecting increases of 18.1% and 26.8%, respectively.The adjusted gross margin decreased to 62.3% from 63.4% in the year-ago comparable period. A higher mix of professional services revenues and the scaling of newer products more than offset the benefits from global tariff refunds.Axon has been facing the pressure of high debt levels. Exiting second-quarter 2026, the company’s long-term notes payable (net) were $1.73 billion. Considering its high debt level, its cash and cash equivalents of $597.7 million do not look impressive. AXON’s lofty valuation remains another concern. The stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 62.71X, significantly higher than the industry average of 41.75X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours. Also, the stock is overvalued compared with its peers, Teledyne Technologies and Woodward, which are trading at 26.45X and 35.47X, respectively. Image Source: Zacks Investment Research Persistent strength across the Connected Devices and Software & Services segments, along with its investments in AI products, drones and robotics, positions AXON favorably for impressive growth in the long run. However, near-term challenges, such as escalating operating expenses, premium valuation and high debt, are limiting this Zacks Rank #3 (Hold) company’s near-term prospects.While current shareholders should hold their positions, new investors should wait for the stock to retract some of its recent gains and provide a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Axon Enterprise, Inc (AXON) : Free Stock Analysis Report Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Axon surged 6% after Q2 revenue of $904M beat estimates, with AI Era Plan revenue up nearly 700% and contracted bookings rising 41% to $15B. Motorola beat estimates and acquired counter-drone firm D-Fend for $1.5B, while Tyler Technologies has cratered 30% YTD despite 22 straight quarters of strong SaaS growth. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Shares of Axon Enterprise (NASDAQ:AXON) are up 6% in midday trading Tuesday, trading near $634 after opening the session at $596. The move extends a post-earnings rebound and pushes the stock into positive territory for the year, up 5% YTD. The catalyst traces back to last week's August 5 Q2 report, which is still being digested by the sell side. Axon delivered revenue of $904.39 million, up 35.3% year over year and beating the $876.46 million consensus, while adjusted EPS of $1.88 topped the $1.84 estimate. Management raised the full-year 2026 revenue growth outlook to 32% to 34% from the prior 30% to 32%, per the company's 8-K filing. The subscription engine did the heavy lifting. Platform Solutions revenue jumped 123% to $149.84 million, AI Era Plan revenue grew nearly 700%, and Dedrone counter-drone revenue crossed $100 million for the first time. Future contracted bookings sit at $15.10 billion, up 41%. Analyst repositioning followed, with Northcoast Research lifting its price target to $680 from $650 and the Street's average target now sitting at $691.83 against 18 buy ratings. The initial gross-margin scare tied to climbing memory prices and Dedrone hardware scaling has been reframed as the price of growth, with margins expected to rebuild in Q4. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) The peer set tells a divided story. Motorola Solutions (NYSE:MSI) reported the same day and also raised guidance, posting Q2 revenue of $3.13 billion (up 13%) and non-GAAP EPS of $4.41 versus a $3.85 estimate. CEO Greg Brown called it "exceptional across the board." Motorola also announced a $1.5 billion acquisition of counter-drone specialist D-Fend Solutions, echoing the same counter-UAS tailwind driving Axon's Dedrone momentum. MSI shares are up 1% today to $465 and are up 21% YTD. Tyler Technologies (NYSE:TYL) sits at the opposite end. The govtech vendor reported July 29, missing revenue estimates by 0.50% at $645.10 million despite SaaS revenue climbing 21.7% for a 22nd consecutive quarter above 20%. CEO Lynn Moore pointed to "record SaaS and total bookings", but the tape has been unforgiving: TYL is down 30% YTD and 46% over the past year, even after today's 1% bounce. Axon carries the premium valuation of the group at roughly $51.5 billion in market cap, versus Motorola's $76.9 billion and Tyler's $13.2 billion. Note that even after today's move, Axon shares remain down 29% from a year ago. Axon opened the day down, and saw most of its gains between 9:35 and 10 a.m. ET. There's no clear news to correspond with this move, and volume today is close to the average traded for the stock. Instead, price action around the company appears to be tied to its recent earnings. Wall Street has kept relatively stable EPS estimates for the company in 2027. 90 days ago the Street modeled $10.57. Today that number is $10.56. It will be interesting if the company's subscription success and growing backlog in excess of earnings will lead to some near-term earnings revisions. If that happens, it could form the next catalyst for Axon. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Retail traders are treating recent post-earnings declines as buying opportunities, favoring companies with strong long-term growth potential. A Stocktwits poll ranked AppLovin first (33%) and Dutch Bros second (32%), followed by Celsius (21%) and Axon Enterprise (14%). Scotiabank and Wedbush maintained bullish ratings on AppLovin despite lowering their price targets. Growth stocks including AppLovin (APP), Dutch Bros (BROS), Celsius Holdings (CELH) and Axon Enterprise (AXON) took a hit after second-quarter (Q2) earnings, but retail investors are hunting for opportunities. AppLovin and Dutch Bros emerged as the top dip-buying targets, with traders betting on AI-powered advertising growth and aggressive store expansion despite concerns over margins and valuations. Retail traders see the recent stock drops as buying opportunities, looking past short-term cost and margin pressures to focus on long-term growth in AI and consumer businesses. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox A Stocktwits poll showed that retail investors were most leaned toward buying AppLovin and Dutch Bros after their post-earnings declines. AppLovin received 33% of the votes, while Dutch Bros followed closely with 32%, making them the top two choices among the stocks polled. Celsius finished third in the poll as investors weighed its strong Q2 revenue of $817.9 million against lower profits due to higher promotional and operating costs. Axon Enterprise received 14% of the votes, the lowest among the four companies, as higher component costs hurt margins despite reporting $904.3 million in revenue. AppLovin stock sank 19% on Thursday as weak Q2 revenue and outlook weighed on the stock. CEO Adam Foroughi linked the softness to AI model upgrade timing, not demand weakness, while citing record advertiser spending and a strong Q3 start. Scotiabank and Wedbush analysts trimmed their price targets, though both firms maintained bullish ratings and pointed to long-term growth opportunities. Scotiabank reduced its price target on AppLovin to $515 from $775 while keeping an ‘Outperform’ rating. The firm said the quarter’s weakness appeared tied to the timing of AI model improvements rather than a broader deterioration in the business. Wedbush also lowered its AppLovin price target, moving it to $610 from $640, but retained an ‘Outperform’ recommendation. The firm highlighted continued expansion in AppLovin’s gaming business, growth from its consumer advertising platform and the company’s ability to maintain a competitive advantage through its AI infrastructure. Dutch Bros stock dropped 18% in Thursday’s session despite both Q2 revenue and earnings coming in above Street expectations. also became a favored target among investors looking beyond near-term pressure. Higher commodity expenses and expansion-related costs weighed on the coffee-chain’s sentiment, but traders pointed to store growth plans and improving sales trends as reasons to consider the decline attractive. The company received mixed reactions from Wall Street, with analysts lowering price targets but maintaining positive views on it’s long-term growth prospects. DA Davidson reduced its price target for Dutch Bros to $85 from $90 while keeping a ‘Buy’ rating, saying the company’s quarterly performance showed strength in key areas despite the market’s negative response. The firm noted strong same-store sales, solid store productivity and better-than-expected EBITDA performance, supporting confidence that the recent pullback may be temporary. RBC Capital analyst Logan Reich also lowered the price target to $70 from $75, while maintaining an ‘Outperform’ rating. The analyst pointed to improved margins, stronger performance from newer locations and progress in customer targeting efforts as reasons for optimism. So far this year, APP, BROS, AXON and CELH stocks have declined between 8% and 50%. Also See: WEN Stock Rises Overnight Ahead Of Q2 Results: Retail Bulls Eagerly Hope For 'Short Squeeze' For updates and corrections, email newsroom[at]stocktwits[dot]com. Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: TG Q2 2026 Earnings Summary S&P 500 Hits Record Highs — But BofA Warns Bullish Sentiment Has Gone Too Far Duos Technologies Group Completes Sale of Duos Technologies, Inc. to Sandbank Acosta, LLC

Axon Enterprise, Inc. AXON reported second-quarter 2026 adjusted earnings of $1.88 per share, down 13.8% year over year. The figure missed the Zacks Consensus Estimate of $1.89 by 0.5%.Total revenues were $904.4 million, up 35.3% year over year and ahead of the consensus estimate of $868.4 million by 4.1%. Effective first-quarter 2025, AXON realigned its business segments. The company now reports results under two segments, namely Connected Devices and Software & Services.Connected Devices: The segment’s revenues increased 34.6% year over year to $506.6 million, driven by strong demand for Dedrone, TASER 10 and Axon Body 4. The adjusted gross margin expanded to 53.4% from 51.1% in the year-ago quarter, primarily aided by tariff refunds, partly offset by a higher mix of Dedrone revenues.Software & Services: The segment’s revenues rose 36.2% year over year to $397.8 million, supported by new users and increased adoption of premium software offerings, including Axon Fusus, the AI Era Plan and Axon 911. However, the adjusted gross margin decreased to 75.1% from 78.9% in the prior-year quarter, reflecting a higher mix of professional services revenues and investments in newer offerings. Axon Enterprise, Inc price-consensus-eps-surprise-chart | Axon Enterprise, Inc Quote Axon’s cost of sales increased 35.2% year over year to $357.9 million. Selling, general and administrative expenses were $291 million, while research and development expenses totaled $209 million.The adjusted gross margin decreased to 62.9% from 63.3% in the year-ago period. A higher mix of professional services revenues and the scaling of newer products more than offset the benefits from global tariff refunds. At the end of second-quarter 2026, Axon had cash and cash equivalents of $597.7 million compared with $1.20 billion at December 2025-end. Long-term lease liabilities totaled $101.7 million compared with $98.9 million at 2025-end.In the first six months of 2026, the company used net cash of $11.4 million in operating activities compared with $65.9 million used in the prior-year period. Adjusted free cash outflow was $55.6 million in the first six months of 2026 compared with $113.7 million in the prior-year period. Management raised its full-year revenue outlook to 32-34% annual growth, up from 30-32% expected earlier, while maintaining an adjusted EBITDA margin target of approximately 25.5%. The updated view reflects continued momentum across the company’s connected devices and software offerings.Axon also maintained its capital expenditure projection at $160-$190 million. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Constellium SE CSTM came out with quarterly earnings of $1.04 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $0.91 per share. This compares with earnings of $0.25 per share a year ago.Constellium posted revenues of $2.75 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.5%. This compares with year-ago revenues of $2.1 billion.Generac Holdings Inc. GNRC came out with quarterly earnings of $2.91 per share in the second quarter of 2026, beating the Zacks Consensus Estimate of $1.95 per share. This compares with earnings of $1.65 per share a year ago.Generac Holdings posted revenues of $1.17 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.37%. This compares with year-ago revenues of $1.06 billion.Graco Inc. GGG reported second-quarter 2026 adjusted earnings of 91 cents per share, up 17% from 78 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 81 cents by 12.4%.The company’s net sales rose 3% year over year to $590.6 million but lagged the consensus estimate of $609 million by 3%. Organic order backlog (excluding acquisitions) rose 28% from the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Axon Enterprise, Inc (AXON) : Free Stock Analysis Report Graco Inc. (GGG) : Free Stock Analysis Report Generac Holdings Inc. (GNRC) : Free Stock Analysis Report Constellium SE (CSTM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research