11:00 AM EDT, 08/13/2026 (MT Newswires) -- Kornit Digital's ( KRNT ) Q2 financial results show that momentum is building, although greater proof of durability is needed to become more constructive as H2 revenue growth and gross margins moderate, Morgan Stanley said in a note Wednesday.

The investment firm cited Q2 revenue growth reaching a 17-quarter high and Services growth of 35%, partly driven by upgrades from Amazon.com (AMZN), a large strategic customer, among the several data points that highlight momentum.

Management also highlighted shortening sales cycles, strong adoption of the all-inclusive click model and new systems among customers in Europe, Asia, and the US, and the accelerating penetration of the screen printing market, pointing to stronger execution and a pickup in analog-to-digital transition despite a mixed apparel market, according to the note.

The firm said it now expects 2026 and 2027 revenue of $223 million and $240 million, respectively, up 2% to 3% from prior estimates.

Morgan Stanley kept an equal-weight rating on Kornit Digital ( KRNT ) and raised its price target to $19 from $18.

Shares of Kornit Digital ( KRNT ) were up 4.4% in Thursday trading.

Price: 18.41, Change: +0.77, Percent Change: +4.37