Axon Enterprise vs. Fastly: Which Industrials Stock Is a Better Buy in 2026?

Axon Enterprise (AXON -2.35%) and Fastly Inc. (FSLY -9.85%) are two industrials stocks to consider for investment in 2026. Axon Enterprise offers mission-critical tools for law enforcement, including Taser devices, body cameras, and digital evidence management. The company's financials show strong revenue growth of 33.5% in FY 2025, reaching $2.8 billion.

However, net income declined to $124.9 million, resulting in a net margin of 4.5%, down from 18.1% the previous year. The debt-to-equity ratio is approximately 0.6x, with current assets covering short-term debts well. Free cash flow was $75.1 million. Fastly, on the other hand, provides an edge cloud computing platform, serving a global customer base primarily within the media and entertainment industry.

In FY 2025, revenue grew by 14.8% to $624.0 million. The company reported a net loss of $121.7 million, or negative 19.5% net margin. The debt-to-equity ratio is approximately 0.5x, with current assets also covering short-term liabilities. Free cash flow was $65.8 million. While Axon Enterprise shows higher growth and stronger financials, Fastly's market potential is significant with a $22 billion total addressable market.

Both companies face risks, such as dependence on major customers and regulatory compliance, but Axon Enterprise's revenue growth and positive cash flow make it an attractive buy in 2026.