Motorola Solutions Delivers Strong Q3 2026 Results, Raises Full-Year Outlook and Expands Buyback by $2B

Executive Summary

Motorola Solutions, Inc. (NYSE: MSI) filed a Form 8-K under Item 2.02 disclosing its financial results for the third quarter ended October 3, 2026. The company reported strong double-digit growth across both operating segments, achieved a record order backlog, increased full-year 2026 guidance, and authorized a $2.0 billion expansion of its share repurchase program.

---

Key Financial Highlights

• Revenue / Net Sales: Reached $3,376 million, up 12% compared to $3,009 million in Q3 2025.
  • Products and Systems Integration: $2,118 million (+12% YoY).
  • Software and Services: $1,258 million (+13% YoY).
  • Acquisition contributions totaled $211 million, with foreign currency tailwinds contributing $11 million.
• Profitability & Margins:
  • GAAP Operating Earnings: $777 million (23.0% margin, down 260 bps YoY, impacted by Silvus earnout adjustments).
  • Non-GAAP Operating Earnings: $1,096 million (32.5% margin, up 200 bps YoY from 30.5%).
  • GAAP Diluted EPS: $3.06 (vs. $3.33 in Q3 2025).
  • Non-GAAP Diluted EPS: $4.69 (vs. $4.06 in Q3 2025, a 16% increase).
• Cash Flow:
  • Operating Cash Flow: $662 million (vs. $799 million in Q3 2025).
  • Free Cash Flow: $589 million (vs. $733 million in Q3 2025), impacted by higher interest and tax payments.
• Order Backlog: Reached an all-time record of $16.6 billion, up 14% ($2.1 billion) YoY.

---

Strategic Developments & Capital Allocation

• M&A Activity:
  • Closed the acquisition of counter-drone specialist D-Fend Solutions for $1.3 billion net of cash acquired, financed via $950 million in senior notes and a $300 million term loan.
  • Acquired AI video analytics provider DeepNeuronic for $29 million net.
• Shareholder Returns:
  • Paid $200 million in cash dividends.
  • Repurchased $94 million in shares (average price of $457.07).
  • Announced a $2.0 billion increase to the share repurchase authorization.

---

Updated Guidance

• Q4 2026 Outlook:
  • Revenue growth: ~13% YoY.
  • Non-GAAP EPS: $5.47 – $5.52.
• Full-Year 2026 Outlook (Raised):
  • Revenue: Raised to ~$13.050 billion (from $12.975 billion).
  • Non-GAAP EPS: Raised to $17.94 – $17.99 (from $17.62 – $17.72).
  • Operating cash flow expectation raised to $3.050 billion.