The Cool Aisle by George Notter... In Case You're Shopping for Non-AI Ideas (AXON, FFIV)

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The Cool Aisle by George Notter... In Case You're Shopping for Non-AI Ideas (AXON, FFIV)

June 28, 2026

think this is true across many portions of the portfolio. Further, we expect Axon’s operating margins – several years out

–in the 30s (versus 21-22% currently).

M&A Opportunity… Axon has hit the size and scale where they can acquire smaller tech companies and plug them into

the Axon ecosystem (and sales channel) in a way that scales them very rapidly and accretively. They’re not unlike Cisco

or Motorola Solutions in that respect. Further, all the AI-based innovation across the Public Safety space provides fertile

ground for attractive deals. We don’t think investors have contemplated this opportunity in the context of the business.

Much Deeper International Penetration… Of course, Europe and other international markets have been much slower to

adopt and deploy Tasers, Body cameras, ALPRs, and drones (UK adoption has been better). Law enforcement agencies

have been more concerned about privacy issues, data sovereignty (GDPR), and other issues. Nonetheless, we think these

markets will convert over time. In our view, the significant new productivity enhancements enabled by AI tools such as

Draft One will help drive these markets to adopt these technologies.

A New Enterprise TAM Expansion… The company seems very excited about this new TAM expansion opportunity right

now. They have new body camera form factors designed for Enterprise applications – for example in retail settings. Also,

the acquisition and development of Fusus – for integration of video surveillance feeds (including existing legacy camera

systems) – is a game changer for customers. For large enterprises building out real time security centers, they now

have a compelling offer.