Lyapunov stability conditions for ideal magnetohydrodynamic (MHD) plasmas with mass flow in axisymmetric toroidal geometry are determined in the Eulerian representation. Axisymmetric equilibrium solutions of ideal MHD are associated to critical points of a nonlinearly conserved Lyapunov functional consisting of the sum of the total energy and the following flux‐weighted quantities: the circulation along field lines, the angular momentum, the toroidal flux, and the mass content within each flux tube. Conditions sufficient for Lyapunov stability of these equilibria against axisymmetric perturbations are found by taking advantage of the Hamiltonian formalism for ideal MHD. In particular [see Eq. (60)], it is sufficient for Lyapunov stability under linearized dynamics that an axisymmetric equilibrium be subsonic in the appropriate rotating frame, lie in the first elliptic regime of the Bernoulli–Grad–Shafranov (BGS) system of equations, and satisfy one additional, more complicated, condition. Effects of boundary conditions, nonlinearity, and three‐dimensionality on MHD stability are also discussed.