Axon Enterprise's 15min chart shows Bollinger Bands Narrowing, Bearish Marubozu.

The 15-minute chart for Axon Enterprise recently displayed a narrowing of Bollinger Bands, accompanied by a bearish Marubozu pattern on October 1, 2025 at 14:30. This indicates a reduction in the magnitude of stock price fluctuations, suggesting that sellers currently dominate the market. Consequently, it is likely that bearish momentum will continue to prevail.

Axon Enterprise, Inc. (AXON) has been witnessing strong momentum in its Software & Services segment, driven by an increase in the aggregate number of users to the Axon network. Revenues from this segment increased by 38.8% in the second quarter of 2025, following a 39% year-over-year jump in the first quarter. Continued momentum in digital evidence management and increased demand for premium add-on features are driving the segment’s growth. Adoption of premium subscription plans is also rising, reflecting strong customer satisfaction and engagement. This ongoing expansion supports a growing base of annual recurring revenues (ARR).

Axon's strong customer alignment, broader adoption across sectors, and continuous product innovation have led the company to raise its financial guidance for 2025. The company now expects revenues to be in the band of $2.65-$2.73 billion, compared to the earlier estimate of $2.60-$2.70 billion. This indicates growth of approximately 29% on a year-over-year basis at the midpoint.

Among its peers, Woodward, Inc. (WWD) and Teledyne Technologies Incorporated (TDY) have shown varying performance. Woodward's Industrial business segment reported a 3.2% year-over-year decline in net sales, while Teledyne's Digital Imaging segment saw a 4.3% increase in revenues.

Axon's stock has gained 27.4% in the past six months, outperforming the industry's growth of 22.3%. However, a recent acquisition announcement has led to a sell-off. Axon said it would acquire Prepared, an emergency communications company, for an estimated $800 million-$900 million. The deal, while strategically sound, has led to a pullback in the stock price.

Technical analysis indicates a narrowing of Bollinger Bands and a bearish Marubozu pattern on October 1, 2025, at 14:30. This suggests that sellers currently dominate the market, and bearish momentum is likely to continue.

In summary, Axon Enterprise continues to show strong financial performance, driven by its Software & Services segment. While recent market volatility due to an acquisition announcement may present short-term challenges, the company's long-term prospects remain positive.