10-QPeriod: Q2 FY2026

Motorola Solutions, Inc. Quarterly Report for Q2 Ended Apr 4, 2026

Filed May 7, 2026For Securities:MSI

Summary

Motorola Solutions, Inc. (MSI) reported net sales of $2.714 billion for the first quarter of 2026, an increase from $2.528 billion in the prior year's comparable period. This growth was primarily driven by a significant 18% increase in the Software and Services segment, boosted by contributions from recent acquisitions and organic growth across MCN, Command Center, and Video offerings. The Products and Systems Integration segment saw a modest 1% increase, with strong performance in Video and international markets offset by softness in North America. However, operating earnings declined to $525 million from $582 million year-over-year, impacted by a substantial increase in "Other Charges," notably a $75 million contingent earnout charge related to the Silvus acquisition and higher intangible amortization expenses. Despite the decrease in operating earnings and a rise in interest expense due to increased debt, the company maintained a solid operating cash flow of $451 million. MSI also continued its capital return program, repurchasing $118 million of stock and paying $201 million in dividends.

Financial Highlights

52 data points
Beta

Revenue

$2.71B

50.2% Gross Margin

Net Income

$366.00M

13.5% Net Margin

EPS (Diluted)

$2.18

Total Assets

$19.08B

Cash & Equivalents

$886.00M

Free Cash Flow

$451.00M

Financial Statements
Beta
Revenue$2.71B
Cost of Revenue$1.35B
Gross Profit$1.36B
R&D Expenses$252.00M
SG&A Expenses$439.00M
Operating Income$525.00M
Interest Expense$111.00M
Net Income$366.00M
EPS (Basic)$2.21
EPS (Diluted)$2.18
Shares Outstanding (Basic)165.80M
Shares Outstanding (Diluted)168.00M

Key Highlights

  • 1Net sales increased by 7% to $2.714 billion, driven by the Software and Services segment's 18% growth.
  • 2Operating earnings decreased by 10% to $525 million, impacted by a significant increase in 'Other Charges' including a $75 million contingent earnout adjustment.
  • 3Net earnings attributable to Motorola Solutions, Inc. decreased to $366 million ($2.18 per diluted share) from $430 million ($2.53 per diluted share) in the prior year.
  • 4The company reported strong growth in its Software and Services segment, up 18%, with acquisitions contributing $38 million to revenue.
  • 5The Products and Systems Integration segment's revenue grew 1%, with international sales increasing 35% while North America sales declined 10%.
  • 6Operating cash flow was $451 million, a decrease from $510 million in the prior year, attributed to increased inventory investments and higher interest/tax payments.
  • 7Motorola Solutions returned $319 million to shareholders through share repurchases ($118 million) and dividends ($201 million) during the quarter.

Frequently Asked Questions

The primary driver of the revenue increase was the strong performance of the Software and Services segment, which grew by 18%. This growth was fueled by contributions from recent acquisitions and organic growth across Mission Critical Networks (MCN), Command Center, and Video offerings. The international region also saw significant growth, contributing to the overall increase.

Operating earnings decreased primarily due to a significant increase in 'Other Charges,' which rose from $49 million in the prior year to $146 million. This increase was largely driven by a $75 million contingent earnout charge related to the Silvus acquisition and a substantial increase in intangible amortization expense. Higher interest expenses related to increased debt also contributed to the decline.

Motorola Solutions continues to actively pursue strategic acquisitions to expand its technology portfolio and ecosystem of safety and security products and services. Recent acquisitions in the Software and Services segment, such as Hyper, Exacom, Blue Eye, Theatro, and RapidDeploy, focus on areas like AI, cloud-native solutions, and video monitoring. The acquisition of Silvus further strengthens its Mission Critical Networks capabilities.

The company has a significant amount of long-term debt, totaling $8.4 billion. During the quarter, they repaid $200 million of short-term debt. They also have a revolving credit facility and an unsecured commercial paper program, indicating access to liquidity. Motorola Solutions is also actively returning capital to shareholders through share repurchases and dividends, signaling a focus on shareholder value.