Why Axon, Palantir, and Leidos Shares Soared
Axon Enterprises (AXON) touched a new high, ending the day at $867.12 ++16.41%) on Tuesday. The firm posted a 32.6% Y/Y increase in revenue ($668.54 million).
Axon raised its full-year guidance, too. The business benefits from the acceleration in AI products. Bookings grew, along with drone orders. New customers in Africa for Taser helped lift total bookings to over 30%.
Management cautioned that tariff-related expenses are an ongoing challenge. However, its strong guidance discounts such costs.
Palantir (PLTR) traded higher after posting revenue growth of 48%, to $1.0 billion. U.S. commercial sales grew by 93%, while government contracts increased by 53%. For the year, the software firm expects revenue of $4.14 to $4.15 billion. Expects growth to accelerate in the coming quarters.
Leidos (LDOS) returned to the $175 level, a price not seen since last year, after its Q2 report. Revenue of $4.3 billion is up by 4.9% Y/Y. Marine autonomy leadership led to contract wins with the U.S. Navy and Marines. The company dominates in the subsea warfare domain.
AI and automation initiatives are saving Leidos on costs. It aims to cut more than 500,000 labor hours this year. The CEO said, "Our AI work is on track to save more than 0.5 million labor hours by the end of this fiscal year, and we're just getting started."
LDOS stock has strong profitability and good valuation at today’s share price.
