President Donald Trump bought a sizable stake in Axon Enterprise this year, the maker of the taser and a growing lineup of policing technology. Two weeks later, Immigration and Customs Enforcement asked vendors for thousands of new tasers built to specifications that experts say match only Axon’s gear.Nobody has indicated that Trump knew about the coming request, or that ICE knew he owned the stock. Still, the timing has drawn attention from ethics watchdogs and policing experts, according to CNBC. Axon (AXON), meanwhile, just wrapped its ninth straight quarter of revenue growth above 30%. Here is what the filings, the contract notice and the company’s numbers show.Trump’s Axon investment is worth over $1MAccording to CNBC:On Feb. 10, Trump bought between $1 million and $5 million of Axon shares, according to disclosures filed with the Office of Government Ethics in May. Two weeks later, on Feb. 24, ICE posted a notice seeking about 17,800 new tasers, plus unlimited cartridges and training, under a proposed five-year, $220 million contract. That order has not yet been awarded.The notice does not name Axon, which makes roughly 90% of tasers sold in the United States, according to investment firm Brown Advisory. But three policing experts and procurement reviewers told CNBC the listed specs, including a 45-foot range and ten targeted probes, match only Axon’s Taser 10. If finalized, the order would more than quadruple ICE’s current supply of about 4,300 devices.The White House says Trump’s holdings sit in a trust run by his children and managed by independent firms. Spokesperson Anna Kelly told CNBC there are “no conflicts of interest” and called the scrutiny a “tired narrative.” Ethics watchdogs see it differently. Jordan Libowitz of Citizens for Responsibility and Ethics in Washington told CNBC:”The concern is that [Trump] bought into a company whose business could grow if his own administration expands immigration enforcement”. Axon stock is up over 20% in the last two trading days, following the CNBC report.
Donald Trump’s stock market investments are under the ethics radarAFP/Getty Images
Axon’s biggest growth leverAxon’s federal ambitions go beyond a single Taser order. The company already holds a $370 million Department of Homeland Security contract for body cameras and software, signed in 2023, though only about $67.5 million has been spent so far, according to the HigherGov tracker, cited by CNBC.Axon President Josh Isner told investors at the William Blair Growth Stock Conference on June 4 that the company’s strategy is selling new products to existing customers, and that federal law enforcement “is a lot better of a market for us” than defense work. Related: Trump bought these health care stocks in 2026; should you?At the TD Cowen technology conference on May 27, management said Axon’s Dedrone counter-drone unit jumped 300% year over year in the first quarter, fueled partly by drone threats tied to conflicts in Ukraine and Iran.Axon’s Q1 shareholder letter backs that up.It reported revenue of $807 million, an increase of 34% year over year. Software sales rose 35% while AI product revenue grew by 700%. Axon raised its full-year revenue outlook to 30%-32% growth. It also spent nearly $2.5 million lobbying last year, its highest total on record, according to OpenSecrets data cited by CNBC, much of it aimed at body camera and drone legislation.A look at balance sheet strengthNet debt swung to about $1 billion at the end of the first quarter, largely because the company spent nearly $550 million on acquisitions and built inventory ahead of expected demand for Dedrone. Operating cash flow was negative $32 million for the quarter, a reversal from a year earlier.Even so, the underlying business looks solid. Net income margin came in at 21%, and adjusted EBITDA margin held near 25%. More Wall Street:HSBC doubles down on stock market message for 2026Citi quietly resets S&P 500 price target for the rest of 2026Jim Cramer has a stark message on the stock market for 2026Annual recurring revenue reached $1.5 billion, up 35%, and net revenue retention was 125%, indicating that existing customers are spending noticeably more over time. Future contracted bookings, essentially Axon’s order backlog, grew 44% to $14.3 billion.Total debt of roughly $1.8 billion appears manageable relative to $3.5 billion in shareholder equity and a business generating over $200 million in quarterly adjusted EBITDA. Management still expects full-year operating cash flow above $600 million and free cash flow near $450 million. Axon looks fundamentally strong, with rising debt tied to growth spending rather than distress.What happens next for Axon and ICEThe ICE taser deal has not been awarded yet. A person familiar with the process told CNBC that a leadership shakeup at DHS, including the departure of former Secretary Kristi Noem, has slowed progress. Her successor, Markwayne Mullin, later scrapped a rule requiring the secretary’s office to personally approve purchases over $100,000, which could clear the way for the deal to move forward.Axon shareholders are also pushing for more transparency. The Nathan Cummings Foundation sued Axon in January over a proposal seeking disclosure of the company’s political spending. “Since Trump came into office, Axon has spent enormous amounts of money in politics to curry favor,” former SEC attorney Richard Kirby told CNBC.For now, investors are watching two things at once. Whether Washington keeps sending business Axon’s way, and whether the balance sheet can keep pace with its own ambitions.Related: President Donald Trump owns roughly $5M in surging AI stock