AXONCAUTIOUS

AXON Gross Margin Analysis

60.4%

Updated 153h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its products, so AXON’s 60.4% means it retains $0.604 from every dollar of sales before other expenses.

Sector Performance

70th percentile

AXON

60.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

59.1%(Jul 2026)

↑ Improving

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Deep Analysis

That level sits well above the sector median of 46.4%, placing AXON at the 71st percentile among peers. The year-over-year change is not available, but the quarter-over-quarter change is +2.2%, moving from 59.1% to 60.4% in the most recent period. A high margin combined with a short-term upward tick suggests AXON has pricing power or cost advantages, yet the lack of a longer trend leaves unclear whether this improvement will last. This creates moderate opportunity if the margin holds, but the unknown year-over-year direction adds uncertainty to the investment case. The strong margin and recent uptick partially offset concerns, but they do not override the overall CAUTIOUS verdict, as margin alone cannot address broader risks flagged for the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about AXON?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are AXON's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.