Motorola Solutions Q2 results beat estimates, FY outlook raised
MSI•What drove the quarter
Segment growth was led by Products and Systems Integration, where sales rose 15%, and Software and Services, where sales rose 10%, driven by demand in mission critical networks, video security, and command center solutions.
Revenue growth included $243 mln from acquisitions and a $35 mln foreign currency tailwind. Operating margin benefited from a $60 mln pre-tax gain related to IEEPA tariff refunds.
Full-year outlook raised
The company raised its full-year 2026 outlook after the record quarter.
Motorola Solutions now sees full-year 2026 revenue at about $12.975 bln, up from $12.8 bln. It raised its full-year 2026 non-GAAP EPS outlook to $17.62-$17.72 from $16.87-$16.99.
The company said it expects supply chain volatility and elevated inventory levels to persist due to higher memory costs.
Analyst view and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the communications & networking peer group is "buy". Wall Street's median 12-month price target for Motorola Solutions Inc is $503.00, about 13.6% above its August 4 closing price of $442.85.
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago.
Quarterly results beat estimates
Motorola Solutions said second-quarter sales rose 13%, beating analyst expectations, while adjusted EPS for the quarter climbed 24% and also beat consensus.
