We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Motorola Solutions Q2 Earnings and Guidance Signal Stronger Growth
Read MoreHide Full Article
Key Takeaways
Motorola raised 2026 revenue and EPS guidance after delivering 13% Q2 sales growth.
MSI's record $15.6 billion backlog, up 11%, supports its stronger second-half growth outlook.
D-Fend acquisition and AI-enabled tools expand MSI's safety technology ecosystem.
Motorola Solutions, Inc. (MSI - Free Report) delivered a 13% year-over-year increase in second-quarter sales and raised its 2026 revenue and earnings outlook again. Record orders lifted backlog to $15.6 billion, while demand across mission-critical communications, software and public-safety technology supported the stronger second-half outlook.
The earnings update also highlights the factors that could shape the next phase of growth: backlog conversion, acquisition integration, margin performance and elevated supply-chain costs.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Motorola now expects 2026 revenues of approximately $12.98 billion, up from its prior outlook of $12.8 billion. Non-GAAP EPS guidance was raised to $17.62-$17.72 from $16.87-$16.99. Management said the higher outlook reflects continued strength in Mission Critical Networks, including stronger expectations for Silvus, and sustained demand for public-safety land mobile radio solutions.
For the third quarter, Motorola expects revenues to grow approximately 8% year over year and non-GAAP EPS to range from $4.39 to $4.44. The company also expects operating margin expansion of approximately 170 basis points for 2026. Motorola Delivers Broad-Based Q2 Growth
Products and Systems Integration revenue increased 15% year over year to $1.91 billion, while Software and Services revenue rose 10% to $1.23 billion. Growth extended across Mission Critical Networks, Video Security and Access Control and Command Center offerings.
Non-GAAP EPS increased 24% to $4.41, while non-GAAP operating margin expanded to 32.9%. Excluding a $60 million benefit from IEEPA tariff refunds, operating margin still expanded 140 basis points despite elevated direct material and memory costs.
MSI’s Record Backlog Strengthens the Outlook
Second-quarter backlog reached a record $15.6 billion, up 11% year over year following record orders. Software and Services backlog increased $1.2 billion, while Products and Systems Integration backlog rose $329 million. The backlog provides visibility into future sales and supports management’s approximately 8% third-quarter revenue-growth outlook.
Motorola generated $469 million in operating cash flow and $414 million in free cash flow during the quarter. Higher earnings drove the increase, partly offset by greater investment in inventory
Motorola Expands Its Safety Technology Ecosystem
Motorola agreed to acquire D-Fend Solutions for $1.5 billion, adding counter-drone technology to its safety and security portfolio. Silvus adds adaptive networking, while Hyper and Exacom expand emergency response and cloud-native recording capabilities. The planned Bell Canada LMR network services acquisition is expected to broaden managed-services reach.
Motorola is also expanding AI-enabled public-safety capabilities through Assist, Interpreter Agent and Live Audio Streaming. Interpreter Agent enables real-time language translation, while Live Audio Streaming provides live calls, AI-generated summaries and transcriptions.
For industry context, Axon Enterprise, Inc. (AXON - Free Report) is another public-safety technology company with exposure to connected devices and software, while L3Harris Technologies, Inc. (LHX - Free Report) has exposure to mission-critical communications and government customers. These two tickers provide relevant peer context for investors assessing the broader public-safety technology theme.
The Zacks Rank is designed to capture near-term earnings-related signals, while the Zacks Style Scores provide additional context on value, growth and momentum characteristics. The combination gives MSI a favorable earnings-revision signal but less support from the broader Style Score framework.
The earnings update strengthens the growth narrative, but the investment case still depends on execution. Backlog conversion, acquisition integration, supply-chain costs and the pace of third-quarter growth will be important indicators for investors evaluating whether the latest guidance increase can translate into sustained results.
View the Zacks #1 Rank List
Image: Bigstock
Motorola Solutions Q2 Earnings and Guidance Signal Stronger Growth
Key Takeaways
Motorola Solutions, Inc. (MSI - Free Report) delivered a 13% year-over-year increase in second-quarter sales and raised its 2026 revenue and earnings outlook again. Record orders lifted backlog to $15.6 billion, while demand across mission-critical communications, software and public-safety technology supported the stronger second-half outlook.
The earnings update also highlights the factors that could shape the next phase of growth: backlog conversion, acquisition integration, margin performance and elevated supply-chain costs.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Motorola Solutions, Inc. price-consensus-eps-surprise-chart | Motorola Solutions, Inc. Quote
MSI Raises Its 2026 Outlook Again
Motorola now expects 2026 revenues of approximately $12.98 billion, up from its prior outlook of $12.8 billion. Non-GAAP EPS guidance was raised to $17.62-$17.72 from $16.87-$16.99. Management said the higher outlook reflects continued strength in Mission Critical Networks, including stronger expectations for Silvus, and sustained demand for public-safety land mobile radio solutions.
For the third quarter, Motorola expects revenues to grow approximately 8% year over year and non-GAAP EPS to range from $4.39 to $4.44. The company also expects operating margin expansion of approximately 170 basis points for 2026.
Motorola Delivers Broad-Based Q2 Growth
Products and Systems Integration revenue increased 15% year over year to $1.91 billion, while Software and Services revenue rose 10% to $1.23 billion. Growth extended across Mission Critical Networks, Video Security and Access Control and Command Center offerings.
Non-GAAP EPS increased 24% to $4.41, while non-GAAP operating margin expanded to 32.9%. Excluding a $60 million benefit from IEEPA tariff refunds, operating margin still expanded 140 basis points despite elevated direct material and memory costs.
MSI’s Record Backlog Strengthens the Outlook
Second-quarter backlog reached a record $15.6 billion, up 11% year over year following record orders. Software and Services backlog increased $1.2 billion, while Products and Systems Integration backlog rose $329 million. The backlog provides visibility into future sales and supports management’s approximately 8% third-quarter revenue-growth outlook.
Motorola generated $469 million in operating cash flow and $414 million in free cash flow during the quarter. Higher earnings drove the increase, partly offset by greater investment in inventory
Motorola Expands Its Safety Technology Ecosystem
Motorola agreed to acquire D-Fend Solutions for $1.5 billion, adding counter-drone technology to its safety and security portfolio. Silvus adds adaptive networking, while Hyper and Exacom expand emergency response and cloud-native recording capabilities. The planned Bell Canada LMR network services acquisition is expected to broaden managed-services reach.
Motorola is also expanding AI-enabled public-safety capabilities through Assist, Interpreter Agent and Live Audio Streaming. Interpreter Agent enables real-time language translation, while Live Audio Streaming provides live calls, AI-generated summaries and transcriptions.
For industry context, Axon Enterprise, Inc. (AXON - Free Report) is another public-safety technology company with exposure to connected devices and software, while L3Harris Technologies, Inc. (LHX - Free Report) has exposure to mission-critical communications and government customers. These two tickers provide relevant peer context for investors assessing the broader public-safety technology theme.
MSI’s Zacks Rank Frames the Earnings Signal
Motorola Solutions currently carries a Zacks Rank #2 (Buy), while its Growth Score is C and VGM Score is D. Its Value Score and Momentum Score are also D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Rank is designed to capture near-term earnings-related signals, while the Zacks Style Scores provide additional context on value, growth and momentum characteristics. The combination gives MSI a favorable earnings-revision signal but less support from the broader Style Score framework.
The earnings update strengthens the growth narrative, but the investment case still depends on execution. Backlog conversion, acquisition integration, supply-chain costs and the pace of third-quarter growth will be important indicators for investors evaluating whether the latest guidance increase can translate into sustained results.