MSI Gains From Strong Order Bookings: Is Growth Set to Continue?
Motorola Solutions, Inc. MSI is benefiting from strong customer demand. At the end of the second quarter of 2026, backlog reached a record $15.6 billion, up 11% year over year. Software and Services accounted for $11.8 billion, while Products & Systems Integration contributed $3.8 billion.
Products & Systems Integration backlog rose $329 million year over year, supported by strong demand for Mission Critical Networks (MCN) and Video. Software and Services backlog increased $1.2 billion, backed by multiyear contracts across Mission Critical Networks, Video and Command Center.
Management has taken several steps to ensure faster conversion of orders into revenues. Strong LMR demand and accelerated quick-turn conversion, combined with stronger-than-expected device shipments, are expediting revenue growth. Revenues rose 13% year over year to $3.13 billion. MSI registered double-digit growth in both operating segments. Backed by strong order intake, management has raised its 2026 outlook following the strong quarter. The company now expects full-year revenue of approximately $12.975 billion, compared with its previous projection of $12.8 billion. Continued public safety modernization and demand for next-generation safety infrastructure are also expected to drive order bookings in the upcoming quarter. These factors significantly boost MSI’s revenue visibility and bring reliability to the company’s earnings growth trajectory.
Other Tech Teams With Strong Order Growth
Keysight Technologies, Inc. KEYS is benefiting from growing electronic content in data centers, networking and advanced semiconductors, which continues to increase demand for validation tools. In the third quarter of fiscal 2026, Keysight’s orders rose 56% year over year to $2.091 billion, and revenues increased 36% to $1.846 billion, while non-GAAP EPS reached $3.07. Commercial Communications revenues rose 56% to $1.006 billion, led by wireline, as AI infrastructure scaling, speed transitions, silicon photonics and system-level emulation expanded customer activity. Keysight said wireline orders more than doubled year over year, and the AI-related pipeline continued to grow as hyperscalers, silicon designers, interconnect makers and transceiver manufacturers increased engagement.
Cisco Systems CSCO closed fiscal 2026 with $9.3 billion in hyperscaler AI infrastructure orders, about 4.5 times fiscal 2025, and roughly $4 billion in related revenues. Cisco expects hyperscaler AI revenues to reach $7.5 billion in fiscal 2027. In the fourth quarter of fiscal 2026, networking product orders rose 40% year over year, the eighth straight quarter of double-digit growth.
MSI’s Price Performance, Valuation & Estimates
MSI stock has gained 0.6% over the past year against the Wireless Equipment industry’s growth of 18.1%.
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Going by the forward price-to-earnings ratio, the company’s shares currently trade at 24.48 forward earnings, lower than the industry’s average of 29.76.
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Earnings estimates for MSI for 2026 and 2027 have moved upward in the past 60 days.
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MSI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
