A Member of Pat McKeough’s Inner Circle recently asked for his advice on the global public safety technology leader, responsible for providing an integrated hardware and software ecosystem of less-lethal technology solutions powered by AI.
Pat likes the firm’s virtual monopoly over the public safety technological infrastructure of Western law enforcement. The company’s ecosystem creates an incredibly sticky software ecosystem. Furthermore, the growth story is expanding into completely untapped multi-billion-dollar verticals. However, Pat notes the company’s shares trade at a premium 73.4x price-to-forecast-earnings multiple.
Axon Enterprises Inc. (Symbol AXON on Nasdaq; www.axon.com) is best known for its Taser line of non-lethal weapons for law enforcement and consumers. The law enforcement technology company also sells body cameras, in-car cameras, software and drones.
Axon’s customers include first responders at the international, federal, state, and local law enforcement levels, as well as fire departments, prisons, and the justice sector. It also has commercial clients.
Axon has two operating segments:
Software and Services (44% of revenue): The segment is growing rapidly and integrates Axon’s hardware devices with cloud-based digital evidence management and analytics tools.
Key products include body-worn cameras, in‑car video systems, and other sensor hardware. This segment also delivers Axon cloud services, which enable clients to capture, store, manage, and analyze video and digital evidence, as well as software solutions that support workflows such as records management and real‑time operations.
Connected Devices (56% of revenue) sells its Taser Conducted Energy Devices. These are tools that deliver an electric shock to disrupt muscle function or inflict pain temporarily. Typical customers are law enforcement agencies, prisons, and civilian security operations.
Axon continues to make selective acquisitions to expand its offerings.
In September 2025, the company agreed to acquire Prepared, a New York-based provider of AI-focused emergency dispatch technology for 911 call centres. The deal is estimated to be worth $800 million. Prepared’s technology supports more than 1,000 agencies across 49 states.
That firm is also the developer of an AI-powered platform designed to enhance emergency response by streamlining call-taking, dispatch, and quality assurance. Prepared offers automated language translation, real-time quality assurance (QA) tools, and non-emergency call management. These are aimed at letting public safety agencies reduce response times, improve staff retention, and better serve diverse communities.
In November 2025, Axon agreed to acquire Carbyne, an emergency communications and response platform. Carbyne’s call-handling platform powers how emergency communications centres receive, route, and manage incoming calls, enabling faster access to critical data. The purchase price is $625 million.
Axon is also focused on developing its own product line. In September 2025, it unveiled its Axon Body Workforce Mini, the newest addition to its enterprise-focused body camera line. This product is aimed at retail, healthcare, and other frontline workers, helping them better protect people and property.
[ofie_ad]
Axon’s savvy acquisitions should spur future growth
Meanwhile, Axon began incorporating AI-enabled technology into its products in 2017, and the technology now powers its transcription, video redaction and automated licence-plate-recognition products.
The acquisitions of both Carbyne and Prepared should be a particularly good fit for Axon. By bringing together Carbyne’s cloud-based call routing and Prepared’s AI-driven situational insights, Axon believes it can now deliver the most connected and intelligent 911 platform—one that seamlessly moves from “call to closure.”
Together, these capabilities will form Axon 911—a next-generation, fully integrated system that connects emergency callers, dispatchers, and responders in real time.
The company’s shares now trade at a very high 67.5 times 2026 forecast earnings of $7.72 a share. That adds risk.
Recommendation in Pat’s Inner Circle: Axon Enterprises Inc. is okay to hold.
