Wall Street closed lower on Thursday as investors awaited a permanent settlement of Middle East geopolitical conflicts and digested soft earnings from major companies. The Dow Jones Industrial Average fell 0.9%, or 464 points, to close at 53,885.10, ending a five-day winning streak. The tech-heavy Nasdaq Composite slipped 0.1% to finish at 26,363.44, whilst the S&P 500 declined 0.2% to 7,709.96. Geopolitical tensions heightened after an Iranian parliamentary committee reviewed a bill to bar US and Israeli ships from passing through the Strait of Hormuz. This development pushed crude oil prices higher, with West Texas Intermediate futures settling up 2.8% at $77.29 per barrel. Disappointing earnings weighed on sentiment. Axon Enterprise reported quarterly adjusted earnings of $1.88 per share, missing estimates, whilst Honeywell Aerospace's adjusted earnings of $1.87 per share fell short of the $2.07 consensus estimate.

Axon Enterprise reported second-quarter revenue of $904 million, up 35% year-over-year, marking its tenth consecutive quarter of revenue growth above 30%. The company raised its full-year revenue growth outlook to 32%–34%, from a previous 30%–32%, while maintaining its adjusted EBITDA margin target of approximately 25.5%. Software and services revenue increased 36% to $398 million, with annual recurring revenue growing 39% to $1.6 billion. Net revenue retention reached 126%. Newer offerings including AI Era Plan, Records, Fusus and Axon 911 collectively grew roughly 70%, whilst the AI Era Plan alone grew nearly 700%. Axon's Dedrone business surpassed $100 million in quarterly revenue, contributing to a 123% increase in platform solutions revenue. The company noted potential opportunities in a $1.5 billion DHS counter-drone programme, though it hasn't estimated its likely share.

Axon reported Q2 2026 revenue of $904 million, up 35% year over year, marking its tenth consecutive quarter of growth exceeding 30%. The public safety technology company's annual recurring revenue grew 39% to $1.6 billion, with net revenue retention reaching 126%. Software and Services revenue increased 36% to $398 million, whilst Connected Devices revenue rose 35% to $507 million. Platform Solutions revenue surged 123% to $150 million, with Dedrone revenue surpassing $100 million. Future contracted bookings grew 41% year over year to $15.1 billion. Notable wins included two nine-figure agreements with major US cities and the largest individual TASER order in company history. Axon reported net income of $29 million and adjusted EBITDA of $242 million. The company raised its full-year revenue growth outlook to 32-34% whilst maintaining its adjusted EBITDA margin outlook at 25.5%.