Axon Enterprise

In its Q2 2026 investor letter Baron SMID Cap ETF disclosed a new position in Axon Enterprise, purchased after the stock traded down amid an AI-driven selloff of software names. Axon has fallen about 24% over the past month and nearly 39% year‑to‑date, with a market cap of $38.05 billion. Baron said it repurchased Axon at a discount, calls it a market‑leading “atoms plus electrons” software provider with strong competitive moats, and expects the position could more than double over a five‑year horizon. » More on finance.yahoo.com

Axon intends to publicly offer senior, non‑interest‑bearing convertible notes totaling $1.0 billion due September 15, 2031, and to grant the bookrunners an 11‑day overallotment option of up to $150 million. Part of the proceeds will be used to finance capped‑call transactions, with the remainder for general corporate purposes including growth and potential acquisitions or investments. The notes are unsecured, convertible under certain conditions, and may be redeemed in whole or in part if the share price is high beginning September 20, 2029; Axon may settle conversions in cash, in common stock, or a combination of both. » More on de.investing.com

At the Goldman Sachs conference, Axon said it is raising its 2026 revenue-growth guidance to 32–34% and reported that five‑year normalized bookings grew by more than 30% in Q2. Software revenue is shifting away from evidence management; about one third now comes from 911, Fusus and the AI Era Plan, whose revenue rose 700% in Q2. The drone‑defense business generated over $100 million in a quarter for the first time, while hardware margins are under pressure from rising storage costs and Dedrone scaling. Axon sees additional market opportunity with an estimated penetration of ~15% in the addressable state and local market and is advancing international and enterprise growth. » More on de.investing.com