Motorola Solutions (MSI) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $3.1 billion, up 13% year-over-year, with double-digit growth in both Products and Systems Integration (+15%) and Software and Services (+10%), driven by strong demand and recent acquisitions.

• GAAP EPS was $3.33 (up 10% year-over-year); non-GAAP EPS was $4.41 (up 24%), including a $0.25/share IEEPA refund benefit.

• Operating cash flow reached $469 million in Q2 (up $197 million year-over-year), with free cash flow at $414 million (up $190 million).

• Backlog hit a record $15.6 billion, up 11% year-over-year, fueled by robust orders across all technologies.

• Announced a definitive agreement to acquire D-Fend Solutions for $1.5 billion, expanding counter-drone capabilities.

Financial highlights

• Q2 2026 revenue was $3.1B (+13% YoY), with $243 million from acquisitions and a $35 million FX tailwind.

• GAAP operating earnings were $809 million (25.8% margin), non-GAAP operating earnings $1.03 billion (32.9% margin, up 330 bps).

• GAAP EPS was $3.33 (up from $3.04), non-GAAP EPS $4.41 (up $0.84 or 24%), with a $0.25 EPS benefit from IEEPA refunds.

• Free cash flow for Q2 was $414 million, up $190 million year-over-year.

• Share repurchases totaled $326 million, dividends $201 million, CapEx $55 million.

Outlook and guidance

• Q3 2026 revenue growth expected at ~8%, with non-GAAP EPS guidance of $4.39–$4.44.

• Full-year 2026 revenue guidance raised to ~$12.975 billion (from $12.8B), non-GAAP EPS to $17.62–$17.72 (from $16.87–$16.99).

• Double-digit growth expected for both segments and all technologies for the full year.

• Operating margin expansion for the year now expected at 170 basis points (up from 100 bps prior).

• Effective tax rate for the year projected between 22% and 23%.