Is Axon Enterprise (AXON) Poised for Continued Durable Growth

Sands Capital, an investment management company, released its “Sands Capital Global Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global Growth adopts a flexible approach to identify the most promising growth companies worldwide. Global equities outperformed the MSCI ACWI in the quarter. The portfolio returned 21.7% in the quarter compared to 11.5% for the index. The second quarter results were the fourth best in both absolute and relative terms since its 2008 inception. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its second-quarter 2025 investor letter, Sands Capital Global Growth Strategy highlighted stocks such as Axon Enterprise, Inc. (NASDAQ:AXON). Axon Enterprise, Inc. (NASDAQ:AXON) manufactures conducted energy devices (CEDs) under the TASER brand. The one-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was -1.34%, and its shares gained 95.99% of their value over the last 52 weeks. On September 16, 2025, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at $750.67 per share, with a market capitalization of $58.93 billion.

Sands Capital Global Growth Strategy stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its second quarter 2025 investor letter:

“Axon Enterprise, Inc. (NASDAQ:AXON) is a leading provider of public-safety technology, including body cameras, software, and the TASER electroshock device. Axon began 2025 with strong momentum, reinforcing the durability of its growth strategy. The company’s expanding software portfolio and AI-powered tools, including Draft One, continue to gain traction. Taser 10 is also ramping quickly, at twice the pace of its predecessor. Revenue rose over 30 percent in the first quarter, supported by recurring sales and improved margins. Premium bundles now represent nearly 30 percent of the installed base, up from less than 20 percent a year ago. Axon raised its full-year revenue guidance to between $2.6 billion and $2.7 billion, despite tariff-related headwinds. International demand is strengthening, with new contracts across the U.K., Latin America, and Asia. Ongoing investments in capacity, employee incentives, and emerging technologies position Axon well for continued durable growth.”

Jim Cramer Notes Axon (AXON) is a “New High Natural”

Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the second quarter, which was 61 in the previous quarter. In the second quarter, Axon Enterprise, Inc. (NASDAQ:AXON) generated $669 million in revenue, representing a 33% increase year-over-year and marking its 14th consecutive quarter of revenue growth exceeding 25%. While we acknowledge the risk and potential of Axon Enterprise, Inc. (NASDAQ:AXON) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Axon Enterprise, Inc. (NASDAQ:AXON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Axon Enterprise, Inc. (NASDAQ:AXON) and shared the list of stocks Jim Cramer commented on. In its Q2 2025 investor letter, Carillon Eagle Mid Cap Growth Fund highlighted Axon Enterprise, Inc.’s (NASDAQ:AXON) long-term growth potential. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.