Motorola Solutions Raises Full-Year Outlook as Revenue Growth Accelerates
The company raised its full-year revenue guidance to approximately $12.975 billion following a 13% increase in second-quarter sales.
Motorola Solutions (MSI) reported second-quarter revenue of $3.1 billion, which rose 13% year-over-year. The growth rate accelerated from the 7% increase reported in the first quarter of 2026.
The results were driven by a shift in segment performance. Sales in the Products and Systems Integration segment grew 15% year-over-year, a significant acceleration from the 1% growth recorded in the prior quarter. Conversely, the Software and Services segment saw sales grow 10% year-over-year, decelerating from an 18% increase in the first quarter.
Profitability improved across both GAAP and non-GAAP measures. Non-GAAP operating margin expanded to 32.9%, up from 29.6% a year ago and an increase from 28.8% in the first quarter. GAAP operating margin rose to 25.8% from 25.0% a year ago, recovering from a dip to 19.3% in the first quarter.
Quarterly results included a new $60 million pre-tax benefit from International Emergency Economic Powers Act refunds. Operating cash flow for the quarter was $469 million, an increase of $197 million compared to the same period last year.
Motorola Solutions raised its full-year 2026 revenue guidance to approximately $12.975 billion from a previous estimate of $12.8 billion. The company also increased its full-year non-GAAP earnings per share guidance to a range between $17.62 and $17.72 a share, up from the prior range of $16.87 to $16.99 a share.
The company entered into a definitive agreement to acquire D-Fend Solutions for $1.5 billion during the quarter. Ending backlog reached $15.6 billion, up 11% year-over-year, though the figure was slightly lower than the $15.7 billion record reported in the first quarter.