Companies /Technology

Motorola Solutions Inc

NYSE: MSI Communication Equipment
$485.30
▼ $0.70 (−0.14%) today
Markets closed · 11:54pm ET

Q1 2026 Earnings

Reported May 7, 2026, 4:14pm ET · SEC source
$3.37
Beat +3.83%
EPS · est. $3.25
$2.7B
Beat +0.52%
Revenue · est. $2.7B
+8.9%
Beating market
MSI vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0May 7May 8report 4:14pm ETearnings+0.8%−10.3%
−8%−4%0May 7May 8earnings+0.8%−10.3%
MSI −10.3%S&P 500 +0.8%
−8%−4%0May 7May 8report 4:14pm ETearnings+2.4%−10.3%
−8%−4%0May 7May 8earnings+2.4%−10.3%
MSI −10.3%NASDAQ +2.4%
−8%−4%0May 6May 15report 4:14pm ETearnings+1.0%−7.1%
−8%−4%0May 6May 15earnings+1.0%−7.1%
MSI −7.1%S&P 500 +1.0%
−8%−4%0+4%May 6May 15report 4:14pm ETearnings+2.0%−7.1%
−8%−4%0+4%May 6May 15earnings+2.0%−7.1%
MSI −7.1%NASDAQ +2.0%
−11.36%
Day of report
+2.13%
Next session
+2.42%
One week
+7.20%
30 days

S&P 500 over the same 30 days: −1.65%.

Did MSI Beat Earnings? Q1 2026 Results

Motorola Solutions kicked off fiscal 2026 on solid footing, posting first-quarter revenue of $2.71 billion, up 7.4% year-over-year, and non-GAAP EPS of $3.37, beating the $3.25 consensus estimate by 3.83%, as robust demand for public safety communication equipment and video security systems drove results ahead of expectations. The standout driver was the Software and Services segment, which surged 18% to $1.16 billion with non-GAAP operating margin expanding sharply to 34.2% from 28.7% a year ago, more than offsetting modest 1% growth in Products and Systems Integration. The company also reported a record Q1 ending backlog of $15.70 billion, up 11% year-over-year, underpinning confidence in the raised full-year outlook; Motorola now expects 2026 revenue of approximately $12.80 billion and non-GAAP EPS of $16.87 to $16.99, both above prior guidance. For Q2, management guided to roughly 8.5% revenue growth and non-GAAP EPS of $3.82 to $3.88, signaling continued momentum heading into the second half of the year.

Key Takeaways
  • Software and Services segment grew 18% driven by growth in MCN, Command Center and Video
  • International growth was the primary driver of the 7% revenue increase
  • Revenue from acquisitions was $219 million in the quarter
  • Foreign currency tailwinds of $60 million in the quarter
  • Record Q1 ending backlog of $15.7 billion, up 11% year-over-year
  • Non-GAAP operating margin expanded 50 basis points to 28.8%
  • Lower non-GAAP effective tax rate of 19.1% vs. 21.1% driven by higher benefits from share-based compensation

“Q1 was an outstanding start to the year, with strong sales and earnings. Our record first-quarter backlog was driven by robust, broad-based demand. As a result, we're raising both our revenue and earnings guidance for the full year 2026.”

Motorola Solutions CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2026, the company expects revenue growth of approximately 8.5% versus Q2 2025 and non-GAAP EPS between $3.82 and $3.88 per share, assuming approximately 168 million fully diluted shares and a non-GAAP effective tax rate of approximately 23%. For full-year 2026, the company raised guidance to revenue of approximately $12.8 billion (up from prior $12.7 billion) and non-GAAP EPS of $16.87 to $16.99 (up from prior $16.70 to $16.85), assuming approximately 168 million fully diluted shares and a non-GAAP effective tax rate of approximately 22.5%.

MSI YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$800.0M$1.6B$2.4B$2.5B$2.7BRevenue$1.3B$1.4BGross Profit$582.0M$525.0MOperating Income$430.0M$366.0MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

MSI Revenue by Segment

Products and Systems Integration$1.6B+1.0%
Software and Services$1.2B+18.0%

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