Motorola Solutions (MSI) Q2 2026: Record Revenue and Earnings Growth — Strong Momentum Ahead

Motorola Solutions, Inc. (NYSE: MSI) reported a remarkable second quarter for 2026, showcasing significant growth across key financial metrics. The company achieved sales of $3.1 billion, marking an increase of $368 million or +13% compared to the same quarter last year, where sales were $2.8 billion. This performance is indicative of strong demand in both the Products and Systems Integration segment, which grew 15%, and the Software and Services segment, which increased by 10%.

This quarter's results are undoubtedly positive for shareholders, reflecting robust operational execution and a favorable market environment. The increase in revenue and earnings per share (EPS) demonstrates the company's ability to capitalize on growth opportunities, particularly in mission-critical networks and video security solutions.

Key Financial Metrics:

• Sales: $3,133 million, up $368 million or +13% YoY
• GAAP EPS: $3.33, up 10% from $3.04
• Non-GAAP EPS: $4.41, up 24% from $3.57
• Operating Cash Flow: $469 million, up $197 million YoY
• Ending Backlog: $15.6 billion, up 11% YoY

The company's GAAP EPS of $3.33 reflects a 10% increase from the previous year, while the non-GAAP EPS of $4.41 shows a more substantial growth of 24%. This divergence highlights the impact of certain non-cash expenses and adjustments that the company has effectively managed.

Motorola Solutions also reported an operating cash flow of $469 million, which is a significant increase from $272 million in the prior year. This improvement in cash flow is crucial as it provides the company with the liquidity needed for strategic investments and shareholder returns.

Strategic Developments:

During the quarter, Motorola Solutions announced a definitive agreement to acquire D-Fend Solutions for $1.5 billion. This acquisition is expected to enhance the company's capabilities in counter-drone technology, positioning it well within the growing security market.

Additionally, the company repurchased $326 million of common stock at an average price of $413.53 per share and paid $201 million in cash dividends. These actions reflect a commitment to returning value to shareholders while also investing in growth opportunities.

Guidance and Outlook:

Looking ahead, Motorola Solutions has raised its full-year revenue guidance to approximately $12.975 billion, up from the previous estimate of $12.8 billion. The company also expects non-GAAP EPS to be between $17.62 and $17.72, an increase from the prior range of $16.87 to $16.99. This optimistic outlook is supported by a strong backlog of $15.6 billion, which positions the company well for continued growth in the latter half of the year.

Forward Catalysts:

Investors should closely monitor the company's performance in the upcoming quarter, particularly the integration of D-Fend Solutions and the realization of synergies from this acquisition. Additionally, the impact of ongoing global supply chain dynamics and the company's ability to manage costs will be critical as it navigates the evolving market landscape.

In summary, Motorola Solutions' Q2 2026 results reflect a strong operational performance, with significant revenue and earnings growth. The company's strategic initiatives and robust backlog provide a solid foundation for future growth, making it an attractive investment for shareholders.

Note: The following tables contain amounts in millions.

	July 4, 2026	June 28, 2025
Net sales	$3,133	$2,765
Costs of products sales	$702	$646
Costs of services sales	$753	$706
Costs of sales	$1,455	$1,352
Gross margin	$1,678	$1,413
Selling, general and administrative expenses	$496	$450
Research and development expenditures	$260	$231
Other charges	$18	$1
Intangibles amortization	$95	$39
Operating earnings	$809	$692
Interest expense, net	$-103	$-55
Other, net	$36	$43
Total other expense	$-67	$-12
Net earnings before income taxes	$742	$680
Income tax expense	$184	$165
Net earnings	$558	$515
Less: Earnings attributable to non-controlling interests	$1	$2
Net earnings attributable to Motorola Solutions, Inc.	$557	$513
Earnings per common share:
Basic	$3.36	$3.08
Diluted	$3.33	$3.04
Weighted average common shares outstanding
Basic	165.8	166.8
Diluted	167.2	168.8

	July 4, 2026	December 31, 2025
Assets
Cash and cash equivalents	$710	$1,165
Accounts receivable, net	$2,160	$2,200
Contract assets	$1,455	$1,574
Inventories, net	$1,333	$983
Other current assets	$474	$378
Total current assets	$6,132	$6,300
Property, plant and equipment, net	$1,167	$1,165
Operating lease assets	$571	$581
Investments	$300	$187
Deferred income taxes	$733	$761
Goodwill	$6,883	$6,800
Intangible assets, net	$2,951	$3,104
Other assets	$505	$491
Total assets	$19,242	$19,389
Liabilities and Stockholders' Equity
Short-term borrowings	$615	$749
Accounts payable	$957	$1,134
Contract liabilities	$2,341	$2,265
Accrued liabilities	$1,666	$1,930
Total current liabilities	$5,579	$6,078
Long-term debt	$8,417	$8,413
Operating lease liabilities	$442	$471
Other liabilities	$2,116	$2,000
Total Motorola Solutions, Inc. stockholders’ equity	$2,672	$2,410
Non-controlling interests	$16	$17
Total liabilities and stockholders’ equity	$19,242	$19,389

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