COMM Rides on Strong Customer Growth: Will it Fuel Revenue Growth?

CommScope Holding Company, Inc. COMM is witnessing strong customer growth across multiple segments. The company’s strong emphasis on research and innovation, and portfolio expansion, aligned with evolving market dynamics, will likely drive revenue.

During the second quarter, revenues in the Connectivity and Cable Solutions segment increased 20.2% to $875.4 million from $728.4 million in the year-ago quarter, backed by the strong cloud and datacenter growth, including GenAI projects. Sales in the Ruckus segment increased 47% year over year to $190 million, driven by solid demand for Ruckus WiFi solutions and growing demand in AI native data center vertical. High demand for DOCSIS 4.0 products and higher license sales led to revenue growth in the Access Networks Solution segment.

During the second quarter, the company’s order rates increased 26% sequentially. The company ended the second quarter with $1.431 billion backlog, up 23% from the end of the first quarter of 2025.

The company boasts a broad customer base globally. Enterprises like Charter Communications, Inc., Comcast Corporation, Cox Communications, Rogers Communications Inc., National Broadband Network Company Limited and more rely on COMM’s product suite to advance their network infrastructure. A worldwide salesforce and extensive network of channel partners, including independent distributors, system integrators and value-added resellers, enable CommScope to efficiently serve its broad customer base across 100 countries.

How Are Competitors Faring?

CommScope faces stiff competition from other industry leaders such as Corning Incorporated GLW and Amphenol Corporation APH in the communication infrastructure market. Corning boasts a much diverse portfolio of offerings compared with CommScope and holds a strong presence in each of the markets it serves. Its optical communication segment includes some of the major technology and communication companies in the U.S. Telecom market, such as AT&T and Lumen, utilizing Corning’s fiber optics to drive network expansion. Semiconductor giant Broadcom is leveraging Corning’s optical components to gain traction in the AI data center market. These factors are major growth drivers. In the second quarter, GLW’s Optical Communications generated $1.56 billion in revenues, up 41% year over year. 

Amphenol’s Communications Solutions surged 101.4% year over year in Q2, reaching $2.91 billion. Several strategic acquisitions over the past few quarters have helped the company to strengthen product offerings and expand its customer base. The acquisition of CommScope’s Outdoor Wireless Networks and Distributed Antenna Systems businesses has bolstered Amphenol’s competitive position in the communications networks market. It is also set to acquire CommScope’s CCS segment in a $10.5 billion deal.

COMM’s Price Performance, Valuation and Estimates

CommScope’s shares have gained 142.5% over the past year compared with the industry’s growth of 81.4%.

Going by the price/sales ratio, the company's shares currently trade at 0.62 forward sales, lower than 0.94 for the industry. 
 

Earnings estimates for 2025 have increased 43.33% to $1.29 per share over the past 60 days, while the same for 2026 have moved up 36.13% to $1.62.

CommScope currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

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This article originally published on Zacks Investment Research (zacks.com).

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