Motorola Solutions Inc. (NYSE:MSI) reported second-quarter results that comfortably exceeded Wall Street expectations and lifted its outlook for the full year, sending the company’s shares about 7% higher in premarket trading on Thursday.
Adjusted earnings came in at $4.41 per share, surpassing analysts’ consensus estimate of $3.84 by $0.57. Revenue increased 13% year over year to $3.13 billion, ahead of the expected $3.0 billion.
The Products and Systems Integration division generated revenue of $1.91 billion, up 15% from a year earlier, while Software and Services revenue rose 10% to $1.23 billion. Motorola Solutions also finished the quarter with a record second-quarter backlog of $15.6 billion, an 11% increase from the previous year.
Record orders support stronger outlook
Chairman and Chief Executive Officer Greg Brown highlighted the company’s strong operating momentum.
He said, “Q2 was exceptional across the board. This performance, along with record Q2 orders, is driving very strong momentum into the second half of this year.”
For the third quarter of 2026, Motorola Solutions expects adjusted earnings per share of between $4.39 and $4.44. The midpoint of $4.42 is marginally below analysts’ consensus forecast of $4.43.
Management also expects revenue to increase by approximately 8% compared with the third quarter of 2025.
Full-year guidance raised
Following the strong quarterly performance, Motorola Solutions increased its full-year 2026 outlook.
The company now expects annual revenue of approximately $12.975 billion, compared with its previous forecast of $12.8 billion and ahead of analysts’ consensus estimate of $12.81 billion.
Adjusted earnings per share guidance was also raised to a range of $17.62 to $17.72, up from the previous outlook of $16.87 to $16.99. The midpoint of $17.67 is comfortably above Wall Street’s expectation of $16.98.
Bank of America analysts said, “2Q trends set the stage for a stronger 2026 finish and a brighter 2027,” while raising their price target on the stock from $500 to $530.
The brokerage added, “We believe the setup for 2026 remains strong, with room for continued execution and operating leverage to drive growth of both revenues and EPS above the current guided levels of 11 and 15%, respectively.”
Cash generation remains robust
Operating cash flow reached $469 million during the quarter, an increase of $197 million from the same period last year.
Motorola Solutions returned capital to shareholders by repurchasing $326 million of common stock and paying $201 million in cash dividends.
The company also announced that it had entered into a definitive agreement to acquire D-Fend Solutions for $1.5 billion.
Motorola Solutions stock price
