Axon EnterpriseSTU:TCS -3.13%79 Operating Margin % is 3.62% as of Mar. 2026, which is 10% above its 10-year median of 3.30. GuruFocus rates STU:TCS with a GF Score™ of 79/100 and a GF Value™ of €527.91 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 347 Aerospace & Defense companies, Axon Enterprise ranks worse than 72.62% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Axon Enterprise Operating Margin % Related Terms
Axon Enterprise Operating Margin % Historical Data
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The historical data trend for Axon Enterprise's Operating 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.
STU:TCS vs HEI.A, CW, FTAI: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Axon Enterprise's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Axon Enterprise's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Axon Enterprise's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Axon Enterprise's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Axon Enterprise (STU:TCS) has a Operating Margin % of 3.62% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Axon Enterprise and its competitors. This is 10% above median its historical median of 3.30. According to the industry distribution chart, Axon Enterprise ranks #252 out of 347 companies in the Aerospace & Defense industry, placing it in the top 72.6%.
Is Axon Enterprise's Operating Margin % too high?
Axon Enterprise's current Operating Margin % of 3.62% is 10% above median its 10-year median of 3.30. The Aerospace & Defense industry median Operating Margin % is 7.75. Axon Enterprise's value of 3.62% is 53.3% below this industry median. Based on the distribution chart, Axon Enterprise ranks #252 out of 347 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Axon Enterprise has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Axon Enterprise's Operating Margin % compare to HEI.A and CW?
According to the Aerospace & Defense industry distribution chart, Axon Enterprise ranks #252 out of 347 companies for Operating Margin %. This places Axon Enterprise in the lower half of its industry. The industry median Operating Margin % is 7.75. Axon Enterprise's value of 3.62% is 53.3% below this benchmark. While the company's 10-year median is 3.30 vs. the industry median of 7.75, Axon Enterprise has consistently been below 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 Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Axon Enterprise's current Operating Margin % of 3.62% is 53.3% below 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Axon Enterprise and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axon Enterprise's current Operating Margin % is 3.62%, which is 10% above median its own 10-year median of 3.30. 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 (STU:TCS) is currently considered Modestly Undervalued. The stock's GF Value™ is €527.91, compared to a current price of €390.20 — trading 26.1% below its estimated fair value. The current Operating Margin % is 3.62%, which is 10% above median its 10-year median of 3.30 and 53.3% below the Aerospace & Defense industry median of 7.75. Axon Enterprise's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Axon Enterprise (STU:TCS), the current Operating Margin % is 3.62% 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 (STU:TCS) Overvalued in 2026?
Based on GuruFocus' analysis, Axon Enterprise stock appears to be undervalued.
The current stock price of €390.20 is trading 26.1% below its estimated GF Value™ of €527.91.
GuruFocus considers Axon Enterprise to be Modestly Undervalued.
Key valuation signals for STU:TCS:
Operating Margin %: 3.62% (10% above median its 10-year median of 3.30)
GF Value™: €527.91 vs. price of €390.20 (26.1% below fair value)
Industry Position: 53.3% below the Aerospace & Defense median (#252 of 347)
No single metric tells the full story. See the STU: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.
79GF Score
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