Axon EnterpriseFRA:TCS +4.89%81 Gross Margin % is 59.12% as of Mar. 2026, which is 3% below its 10-year median of 61.15. GuruFocus rates FRA:TCS with a GF Score™ of 81/100 and a GF Value™ of €538.73 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 342 Aerospace & Defense companies, Axon Enterprise ranks better than 87.43% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Axon Enterprise had a gross margin of 59.12% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Axon Enterprise Gross Margin % Related Terms
Axon Enterprise Gross Margin % Historical Data
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The historical data trend for Axon Enterprise's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:TCS vs HEI.A, CW, FTAI: Gross Margin % Comparison
For the Aerospace & Defense subindustry, Axon Enterprise's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Axon Enterprise Gross Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Axon Enterprise's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Axon Enterprise's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Axon Enterprise (FRA:TCS) has a Gross Margin % of 59.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Axon Enterprise and its competitors. This is near median its historical median of 61.15. Over the past decade, Axon Enterprise's Gross Margin % has ranged from 57.88 to 63.57. According to the industry distribution chart, Axon Enterprise ranks #43 out of 342 companies in the Aerospace & Defense industry, placing it in the top 12.6%.
Is Axon Enterprise's Gross Margin % too high?
Axon Enterprise's current Gross Margin % of 59.12% is near median its 10-year median of 61.15. Over the past 10 years, this metric has ranged from a low of 57.88 to a high of 63.57. The Aerospace & Defense industry median Gross Margin % is 26.65. Axon Enterprise's value of 59.12% is 121.8% above this industry median. Based on the distribution chart, Axon Enterprise ranks #43 out of 342 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Axon Enterprise has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Axon Enterprise's Gross Margin % compare to HEI.A and CW?
According to the Aerospace & Defense industry distribution chart, Axon Enterprise ranks #43 out of 342 companies for Gross Margin %. This places Axon Enterprise in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.65. Axon Enterprise's value of 59.12% is 121.8% above this benchmark. Historically, Axon Enterprise's own Gross Margin % has ranged from 57.88 to 63.57 over the past decade. While the company's 10-year median is 61.15 vs. the industry median of 26.65, Axon Enterprise has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Aerospace & Defense company?
The median Gross Margin % among Aerospace & Defense companies is 26.65, based on 342 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Axon Enterprise's current Gross Margin % of 59.12% is 121.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Axon Enterprise and its competitors. For the Aerospace & Defense industry, the median Gross Margin % is 26.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axon Enterprise's current Gross Margin % is 59.12%, which is near median its own 10-year median of 61.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axon Enterprise stock overvalued right now?
Based on GuruFocus' analysis, Axon Enterprise (FRA:TCS) is currently considered Modestly Undervalued. The stock's GF Value™ is €538.73, compared to a current price of €416.20 — trading 22.7% below its estimated fair value. The current Gross Margin % is 59.12%, which is near median its 10-year median of 61.15 and 121.8% above the Aerospace & Defense industry median of 26.65. Axon Enterprise's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Axon Enterprise (FRA:TCS), the current Gross Margin % is 59.12% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Axon Enterprise (FRA:TCS) Overvalued in 2026?
Based on GuruFocus' analysis, Axon Enterprise stock appears to be undervalued.
The current stock price of €416.20 is trading 22.7% below its estimated GF Value™ of €538.73.
GuruFocus considers Axon Enterprise to be Modestly Undervalued.
Key valuation signals for FRA:TCS:
Gross Margin %: 59.12% (near median its 10-year median of 61.15)
GF Value™: €538.73 vs. price of €416.20 (22.7% below fair value)
Industry Position: 121.8% above the Aerospace & Defense median (#43 of 342)
No single metric tells the full story. See the FRA:TCS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axon Enterprise Inc is building a public safety operating system by integrating a suite of hardware devices and cloud software solutions. The company's suite includes cloud-hosted digital evidence management solutions, TASER energy devices, drones and robotic security, and training solutions. Its operation comprises of two operating segments, Software and Services, and Connected Devices. The company generates the majority of its revenue from the Connected Devices segment, which is engaged in developing, manufacturing, and selling fully integrated hardware solutions such as conducted energy devices sold under the TASER brand, body cameras, fixed and in-car cameras, drone and counter-drone technologies, and a broad ecosystem of accessories, extended warranties and related hardware products.
81GF Score
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