The Motley Fool on $AXON (Nov 6, 2026)
AXON's guidance cut is entirely from federal drone contracts not closing this quarter or next, which the speaker sees as procurement timing after the midterms, not a fundamental issue; software growth is accelerating and the speaker thinks Axon can sustain management's 30+% growth over the next decade, so the selloff looks overdone.
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Axon is on my radar this week. The tickers AX and unfortunately the market has really sold off this in part because of the big tech selloff we saw this week, but also after this company reported earnings and the market was you shoot first, ask questions later.
They saw a pullback in guidance from Axon's management team here as well as a massive investment into a uh third party, a drone maker where they're going to distribute via Ax Ax axon's platform.
And they were like, what what's happening here? And I think if you get into the details here, it's actually a lot better for Axon than the market is making it out to be. Part of the guidance, the entire guidance um revision comes from a couple of federal procurement contracts related to their drone business that they do not expect to close this quarter or next quarter, which is a big concern.
But that largely is a result of just an extension in the procurement prog progress at the federal level, which is not overly surprising coming out of the midterms. But if you look at their software business, growth is accelerating there.
And this is a management team who continues to says, "We don't care about quarterly earnings. We are investing for a long-term future that is going to have us growing at a 30 plus% rate over the course of the next decade.
And I think Axon's well on the rate of doing that."
Axon is has been one of the best performing stocks over the past 15 years or so. So, uh, yeah, it's interesting. A rough day for Axon, but this is one of those long-term companies that we like to talk about on the monthly fool.