As you might know, Axon Enterprise, Inc. (NASDAQ:AXON) just kicked off its latest third-quarter results with some very strong numbers. The company beat forecasts, with revenue of US$544m, some 3.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.86, 1,679% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the most recent consensus for Axon Enterprise from twelve analysts is for revenues of US$2.54b in 2025. If met, it would imply a sizeable 31% increase on its revenue over the past 12 months. Statutory earnings per share are expected to fall 13% to US$3.44 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$2.48b and earnings per share (EPS) of US$3.01 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 20% to US$505per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Axon Enterprise analyst has a price target of US$610 per share, while the most pessimistic values it at US$385. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 27% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.1% annually. So although Axon Enterprise is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Axon Enterprise's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Axon Enterprise going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Axon Enterprise that we have uncovered.

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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.