Motorola Solutions, Inc. Earnings Recaps
Q1 2026
May 9, 2026
Shares fell 11.5% as investors reacted negatively to margin compression in the Products and SI segment alongside weaker operating cash flow, despite revenue growth and raised full-year guidance.
Key takeaways
- Revenue grew 7% year-over-year, supported by 18% growth in Software and Services and modest 1% growth in Products and SI.
- Operating margins expanded company-wide by 50 basis points to 28.8% on a non-GAAP basis, but Products and SI margins declined from 28.1% to 24.8%, pressured by unfavorable mix and higher supply chain costs.
- GAAP EPS declined to $2.18 due to a $0.45 noncash Silvus earnout charge; non-GAAP EPS increased 6% to $3.37.
- Operating cash flow fell $59 million year-over-year to $451 million, with free cash flow down $84 million, driven by inventory investments and higher interest expense.
- Orders reached a record $15.7 billion backlog (up 11%), reflecting strong demand, with notable wins in both segments, but investors focused on margin pressure and cash flow softness.
Q3 2025
Oct 31, 2025
Motorola Solutions reported a strong Q3 2025, with revenue and non-GAAP earnings per share exceeding expectations, driven by robust growth in software and services and record orders across public safety and defense sectors.
Key takeaways
- Revenue grew 8% YoY to $3.0 billion, with software and services up 11% and products up 6%.
- Non-GAAP EPS increased 9% to $4.06, benefiting from higher sales and improved operating margins.
- Record Q3 operating cash flow reached $799 million, supporting continued strong capital allocation, including $182 million in dividends and share repurchases of $121 million.
- Ending backlog surged to $14.6 billion, up 3% YoY, fueled by significant multiyear orders and a record $11 billion in software and services backlog.
- Successful acquisition of Silvus for $4.4 billion enhances Motorola's offerings in security and communications technologies.