Motorola Solutions Q2 Earnings Call Highlights

Motorola Solutions reported a record second quarter , with revenue up 13%, non-GAAP EPS rising 24% to $4.41, and non-GAAP operating margin expanding to 32.9%. Growth was broad-based across Products and Systems Integration, Software and Services, LMR systems, Silvus and safety-security offerings. The company raised its 2026 outlook to approximately $12.975 billion in revenue and $17.62–$17.72 in non-GAAP EPS. Backlog reached a record $15.6 billion, while Silvus revenue expectations increased to about $850 million for the year. Motorola expects continued growth from the D-Series P25 infrastructure upgrade cycle and plans to close its $1.5 billion D-Fend Solutions counter-drone acquisition in the second half, funded partly with roughly $1 billion in new debt.

Motorola Solutions NYSE: MSI reported record second-quarter sales and earnings for 2026, with revenue rising 13% as demand increased across its Products and Systems Integration and Software and Services segments. The company raised its full-year revenue and earnings outlook, citing continued strength in land mobile radio, or LMR, systems, the Silvus business and its broader safety and security portfolio. Chairman and CEO Greg Brown called the quarter “exceptional,” saying growth was supported by double-digit increases in both operating segments and across the company’s three technologies. He said mission-critical network sales exceeded expectations in public-safety LMR, while Silvus continued to perform strongly.

Second-quarter revenue increased 13%, with acquisitions contributing $243 million and favorable foreign exchange contributing $35 million. GAAP operating earnings were $809 million, or 25.8% of sales, compared with 25% in the prior-year period. Non-GAAP operating earnings totaled just over $1 billion, rising 26% from a year earlier. Non-GAAP operating margin was 32.9%, an increase of 330 basis points. The result included a $60 million benefit from refunds related to the International Emergency Economic Powers Act, or IEEPA. Excluding that benefit, non-GAAP operating margin expanded 140 basis points.

GAAP earnings per share rose to $3.33 from $3.04 a year earlier. Non-GAAP EPS increased 24% to $4.41, up from $3.57. CFO Jason Winkler said the increase reflected higher operating earnings and a $0.25-per-share benefit from the IEEPA refunds, partly offset by higher interest expense. Operating cash flow was $469 million, up $197 million from the prior year, while free cash flow increased $190 million to $414 million. The company attributed the gains primarily to higher earnings, partly offset by increased inventory investment.

Products and Systems Integration revenue grew 15% year over year, led by mission-critical networks and video. Segment operating earnings reached $599 million, or 31.4% of sales, compared with 26.7% a year earlier. Excluding the IEEPA refunds, segment operating margin expanded 150 basis points. The company highlighted several major Products and Systems Integration awards, including: A $36 million P25 device and SVX order from a U.S. federal customer. A $20 million P25 device order from Atlanta and a $17 million device order from Miami-Dade Corrections. Next-generation P25 infrastructure awards valued at $52 million, $34 million and $22 million for a U.S. federal customer, a Southeastern state and local customer, and St. Louis County, Missouri, respectively. Software and Services revenue increased 10%, with growth acro...