Industrials Tech Preview: Finding Support in SLED Market; Signs of Dispersion Beginning to Show

Research evidence excerpt

Industrials Tech Preview: Finding Support in SLED Market; Signs of Dispersion Beginning to Show

Idea

July 29, 2026 08:08 AM GMT

Morgan Stanley & Co. LLCMTelecom & Networking Equipment | North America Meta A Marshall

Equity Analyst

Industrials Tech Preview: Meta.Marshall@morganstanley.comAntonio Jaramillo +1 212 761-0430

Research Associate

Antonio.Jaramillo@morganstanley.com +1 212 761-4438

Finding Support in SLED

Telecom & Networking Equipment

North America

Industry View In-LineMarket; Signs of Dispersion

Beginning to Show

AXON is our preferred setup into the print, followed by ZBRA,

then MSI. We expect full-year raises from AXON and ZBRA, with

MSI guidance intact as supply constraints and a steep back-half

ramp remain key watch items.

Key Takeaways

AXON remains our top setup, as we expect 2Q future contracted bookings of

$15B and a slight raise to full-year growth outlook to 31-33% y/y (vs. 30-32%)

Slight downtick in industry capex balanced by positive HON EPS supports a more

neutral setup for ZBRA, which should support a bottom-end raise to CY26

guidance

MSI’s 2Q looks achievable, but a demanding back-half ramp is a key hurdle for the

quarter; memory headwinds abating would be most helpful here

Positive SLED checks support positive setup, while supply chain constraints

persist. We see most of our industrial technology coverage as relatively insulated

from the deal pushouts highlighted by IBM (covered by Erik Woodring), with

positive broader SLED checks from our recent VAR call providing additional support

for AXON and MSI (VAR recap note here). We are most positive on AXON into the

print, followed by ZBRA, while seeing less upside for MSI on print given demanding

second-half growth trajectory. We note that stabilization in memory pricing would