Motorola Solutions, Inc.

(New York Stock Exchange)
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Bullish +75

Motorola Solutions stock: record orders lift 2026 outlook

Earnings report Financial outlook AI-generated analysis

πŸ“ˆ Motorola Solutions sales rose 12 percent year over year to $3.4 billion in the third quarter.

πŸ“¦ Record third-quarter orders pushed the total backlog up 14 percent to $16.6 billion.

πŸ’» Software and Services segment sales increased 13 percent, driven by Mission Critical Networks and Video.

πŸš€ Management raised the 2026 revenue forecast to $13.05 billion from the previous $12.975 billion.

πŸ’° Non-GAAP earnings per share outlook was increased to a range of $17.94 to $17.99.

πŸ“‰ GAAP operating margin fell to 23.0 percent due to higher contingent earnout costs linked to Silvus.

⚠️ Higher memory costs and tariffs remain relevant risks for future margins and execution.

πŸ“¦ Inventory levels are expected to remain elevated as the company protects its supply chain.

πŸ” Fourth quarter revenue is projected to grow approximately 13 percent year over year.

πŸ’Ή Stock price traded at 484.80 euros, reflecting positive market reaction to the earnings beat.

Bullish Signals
  • Motorola Solutions sales increased 12 percent year over year to $3.4 billion in the third quarter.
  • Record orders lifted the total backlog to $16.6 billion, a 14 percent increase from a year earlier.
  • Management raised its 2026 revenue outlook to $13.05 billion and non-GAAP earnings to $17.94-$17.99 per share.
  • Software and Services segment sales grew 13 percent, supported by strong demand in Mission Critical Networks and Video.
  • Fourth quarter revenue is expected to grow approximately 13 percent year over year.
Risk Factors
  • GAAP operating margin fell to 23.0 percent from 25.6 percent primarily due to higher contingent earnout costs linked to Silvus.
  • Higher memory costs, tariffs, and supply-chain uncertainty remain relevant risks that could pressure future margins.
  • The company expects inventory levels to remain elevated as it works to protect its supply chain.
Full Analysis
Motorola Solutions reported a robust third quarter with sales increasing 12 percent year over year to $3.4 billion, driven by strong demand across its safety and security portfolio. Record orders across all three technology segments lifted the company's total backlog to $16.6 billion, representing a 14 percent increase from the prior year. Management has raised its full-year 2026 outlook for revenue, non-GAAP earnings per share, and operating cash flow following the strong quarterly performance. The company now expects 2026 revenue of $13.05 billion and non-GAAP earnings between $17.94 and $17.99 per share, surpassing previous forecasts. Specific segment growth was led by Software and Services, which saw a 13 percent sales increase supported by Mission Critical Networks, Command Center, and Video products. The Products and Systems Integration segment also posted double-digit growth with a 12 percent rise in sales. While the outlook is positive, management highlighted risks including higher memory costs, tariffs, and supply-chain uncertainty that could pressure future margins. The company expects inventory levels to remain elevated as it works to protect its supply chain against these external pressures.