Companies /Technology

Motorola Solutions Inc

NYSE: MSI Communication Equipment
$485.30
▼ $0.70 (−0.14%) today
Markets closed · 6:43pm ET

Q2 2026 Earnings

Reported Aug 5, 2026, 4:12pm ET · SEC source
$4.41
Beat +14.45%
EPS · est. $3.85 Adjusted

Includes a $60M (pre-tax) benefit, or $0.25 per share, related to IEEPA tariff refunds recorded during the quarter.

$3.1B
Beat +4.37%
Revenue · est. $3.0B
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0+3%Aug 5Aug 6report 4:12pm ETearnings−0.3%+1.5%
−6%−3%0+3%Aug 5Aug 6earnings−0.3%+1.5%
MSI +1.5%S&P 500 −0.3%
−6%−3%0+3%Aug 5Aug 6report 4:12pm ETearnings−0.4%+1.5%
−6%−3%0+3%Aug 5Aug 6earnings−0.4%+1.5%
MSI +1.5%NASDAQ −0.4%
−6%−3%0Aug 4Aug 13report 4:12pm ETearnings+0.9%−0.6%
−6%−3%0Aug 4Aug 13earnings+0.9%−0.6%
MSI −0.6%S&P 500 +0.9%
−6%−3%0Aug 4Aug 13report 4:12pm ETearnings+2.1%−0.6%
−6%−3%0Aug 4Aug 13earnings+2.1%−0.6%
MSI −0.6%NASDAQ +2.1%
+8.20%
Day of report
−1.38%
Next session
−1.90%
One week

Did MSI Beat Earnings? Q2 2026 Results

Motorola Solutions delivered a standout second quarter for fiscal 2026, beating Wall Street on both top and bottom lines as demand for its public safety technology continued to accelerate. The company posted adjusted non-GAAP EPS of $4.41, ahead of the $3.85 consensus estimate by 14.45%, extending its streak of beating EPS expectations to five consecutive quarters, while revenue of $3.13 billion cleared estimates by 4.37% and grew 13.3% year-over-year. The headline results were bolstered by a $60 million pre-tax benefit, or approximately $0.25 per share, from IEEPA tariff refunds following a U.S. Supreme Court ruling that invalidated tariffs imposed under the International Emergency Economic Powers Act. Segment momentum was broad-based, with Products and Systems Integration climbing 15% to $1.91 billion and Software and Services rising 10% to $1.23 billion. Record backlog of $15.60 billion, up 11% year-over-year, reinforced management's confidence in raising its full-year 2026 revenue outlook to approximately $12.98 billion and non-GAAP EPS guidance to a range of $17.62 to $17.72, well above prior targets.

Key Takeaways
  • Products and Systems Integration segment grew 15% driven by Mission Critical Networks and Video Security and Access Control
  • Software and Services segment grew 10% driven by MCN, Command Center and Video
  • Growth in both North America and International markets
  • Revenue from acquisitions contributed $243 million in the quarter
  • Foreign currency tailwinds of $35 million in the quarter
  • Non-GAAP operating margin expanded 330 bps to 32.9% driven by higher sales and improved operating leverage
  • $60 million IEEPA refund benefit contributed approximately 190 bps to operating margin
  • Record Q2 ending backlog of $15.6 billion, up 11% year-over-year

“Q2 was exceptional across the board. This performance, along with record Q2 orders, is driving very strong momentum into the second half of this year.”

Motorola Solutions CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2026, the company expects revenue growth of approximately 8% versus Q3 2025 and non-GAAP EPS between $4.39 and $4.44, assuming approximately 168 million fully diluted shares and a non-GAAP effective tax rate of approximately 23%. For full-year 2026, the company raised its outlook to revenue of approximately $12.975 billion (up from prior guidance of $12.8 billion) and non-GAAP EPS between $17.62 and $17.72 (up from prior guidance of $16.87 to $16.99), assuming approximately 168 million fully diluted shares and a non-GAAP effective tax rate between 22% and 22.5%.

MSI YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$900.0M$1.8B$2.7B$2.8B$3.1BRevenue$1.4B$1.7BGross Profit$692.0M$809.0MOperating Income$513.0M$557.0MNet Income
$0$900.0M$1.8B$2.7BRevenueGross ProfitOperating IncomeNet Income

MSI Revenue by Segment

Products and Systems Integration$1.9B+15.0%
Software and Services$1.2B+10.0%

Figures from SEC filings and company reports. Not investment advice.