MSI

Motorola Solutions’ second quarter results received a strong positive response from the market, underpinned by double-digit sales growth across both core business segments and all three technology lines. Management attributed the company’s performance to robust demand for land mobile radio (LMR) systems, successful execution on mission-critical network orders, and continued momentum in the Silvus and video security businesses. CEO Gregory Brown highlighted that record orders and a growing backlog supported the company’s outperformance, emphasizing, “Our latest generation APX NEXT devices continue to redefine mission-critical reliability and are increasingly integrated with new features that leverage our entire ecosystem.” Is now the time to buy MSI? Find out in our full research report (it’s free). Revenue: $3.13 billion vs analyst estimates of $3.00 billion (13.3% year-on-year growth, 4.4% beat) Adjusted EPS: $4.41 vs analyst estimates of $3.85 (14.4% beat) The company lifted its revenue guidance for the full year to $12.98 billion at the midpoint from $12.8 billion, a 1.4% increase Management raised its full-year Adjusted EPS guidance to $17.67 at the midpoint, a 4.4% increase Operating Margin: 25.8%, in line with the same quarter last year Market Capitalization: $77.26 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Timothy Long (Barclays) asked about Silvus’ production capacity and future growth levers. COO Jack Molloy explained that capacity in Los Angeles was expanded, a new Salt Lake City facility is underway, and a larger sales force is in place to drive continued growth. Joseph Cardoso (JPMorgan) questioned the drivers behind implied fourth-quarter acceleration. CEO Gregory Brown pointed to planned product releases, particularly with D-Series infrastructure, and strong demand visibility from double-digit orders growth. Adam Tindle (Raymond James) inquired about the rebound in Products and Systems Integration margins. CFO Jason Winkler attributed margin improvement to higher device shipments, improved inventory positioning, and selective price increases for high-memory content products. Meta Marshall (Morgan Stanley) asked about the adoption and pricing of software subscriptions attached to the APX NEXT radios. Winkler stated that applications are seeing strong uptake and pricing has trended upwards, with annual recurring revenue in this area nearing $100 million. Louie Dipalma (William Blair) probed whether the D-Series upgrade cycle is a one-time event or a longer-term driver. Molloy responded that the infrastructure refresh will extend over multiple years, supporting sustained growth into the 2030s. In future quarters, our analyst team will be watching (1) the adoption pace and customer expansion for D-Series infrastructure and APX NEXT devices, (2) the integration and early contribution of the D-Fend acquisition in counter-drone solutions, and (3) the ability to offset rising memory and material costs with price adjustments and operating leverage. Continued growth in software subscriptions and recurring revenue will also be a key signpost for long-term sustainability. Motorola Solutions currently trades at $461.90, up from $438.14 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Vice President of Investor Relations - Brian Piotrowski Chairman and Chief Executive Officer - Gregory Brown Executive Vice President and Chief Financial Officer - Jason Winkler Executive Vice President and Chief Operating Officer - John Molloy Executive Vice President and Chief Technology Officer - Mahesh Saptharishi Operator: Good afternoon, and thank you for holding. Welcome to the Motorola Solutions Second Quarter 2026 Earnings Conference Call. Today's call is being recorded. If you have any objections, please disconnect at this time. The presentation material and additional financial tables are posted on the Motorola Solutions Investor Relations website. In addition, a webcast replay of this call will be available on our website within 3 hours after the conclusion of this call. The website address is www.motorolasolutions.com/investor. [Operator Instructions] I would now like to introduce Mr. Brian Piotrowski, Vice President of Investor Relations. Mr. Piotrowski, you may begin your conference. Brian Piotrowski: Good afternoon. Welcome to our 2026 second quarter earnings call. With me today are Greg Brown, Chairman and CEO; Jason Winkler, Executive Vice President and CFO; Jack Molloy, Executive Vice President and COO; and Mahesh Saptharishi, Executive Vice President and CTO. Greg and Jason will review our results along with commentary, and Jack and Mahesh will join for Q&A. We have posted an earnings presentation and news release at motorolasolutions.com/investors. These materials include GAAP to non-GAAP reconciliations for your reference. During the call, we reference non-GAAP financial results, including those in our outlook, unless otherwise noted. A number of forward-looking statements will be made during this presentation and during the Q&A portion of the call. These statements are based on current expectations and assumptions that are subject to a variety of risks and uncertainties. Actual results could differ materially from these forward-looking statements. Information about factors that could cause such differences can be found in today's earnings news release, in the comments made during this conference call, in the Risk Factors section of our 2025 annual report on Form 10-K or any quarterly report on Form 10-Q and in our other reports and filings with the SEC. We do not undertake any duty to update any forward-looking statements. I'll now turn it over to Greg. Gregory Brown: Thanks, Brian. Good afternoon, and thanks for joining us today. I'll start off by sharing a few thoughts about the business before Jason takes us through our results and outlook. First, Q2 was an exceptional quarter with record sales and earnings. Revenue was up 13%, driven by double-digit growth in both segments and all 3 technologies. Products and Systems Integration delivered an outstanding quarter, growing 15%, highlighted by mission-critical network sales that exceeded our expectations in public safety LMR, along with continued strength in Silvus. And Software and Services also continues to perform well, growing 10% in the quarter. Additionally, Q2 included operating margin expansion of 140 basis points, excluding the benefit of the IEEPA tariff refunds. Second, our Q2 results and broad-based demand provide strong momentum for continued growth heading into the second half of this year, led by our APX NEXT devices and next-generation D-Series infrastructure. Our latest generation APX NEXT devices continue to redefine mission-critical reliability and are increasingly integrated with new features that leverage our entire ecosystem. On the P25 network side, interest in D-Series is growing as agencies prioritize the modernization of their core mission-critical communications platforms. And finally, demand for our safety and security ecosystem remains robust, fueled by record Q2 orders in all 3 technologies. As a result, we achieved a record Q2 ending backlog of $15.6 billion, which is up 11% versus a year ago. As a result of the strong Q2 performance and growing momentum, we're again raising our full-year guidance for both sales and EPS. And with that, I'll now turn the call over to Jason. Jason Winkler: Thank you, Greg. Revenue for the quarter grew 13% and was above our guidance with double-digit growth in both segments and in all 3 technologies, primarily driven by strong LMR demand and accelerated quick-turn conversion. Revenue from acquisitions was $243 million, while foreign currency tailwinds were $35 million during the quarter, consistent with our expectations. GAAP operating earnings were $809 million or 25.8% of sales, up from 25% in the year-ago quarter. Non-GAAP operating earnings were just over $1 billion, up 26% from the year-ago quarter, and non-GAAP operating margin was 32.9%, up 330 basis points. The increase in both GAAP and non-GAAP operating margin was driven by higher sales and improved operating leverage, inclusive of higher direct material costs and a $60 million benefit from the IEEPA refunds recorded during the quarter. Excluding the refunds, non-GAAP operating margins expanded by 140 basis points. GAAP earnings per share was $3.33, up from $3.04 in the year-ago quarter. Non-GAAP EPS was $4.41, up $0.84 or 24% from $3.57 last year. The growth in EPS was driven by higher operating earnings and a $0.25 benefit from the IEEPA refunds, partially offset by higher interest expense in the current quarter. OpEx in Q2 was $673 million, up $58 million versus last year, primarily due to the acquisitions. Turning to cash flow. Q2 operating cash flow was $469 million, up $197 million from last year, and free cash flow was $414 million, up $190 million. The increase in both operating and free cash flows was primarily driven by our higher earnings, partially offset by higher investments in inventory. Capital allocation for Q2 included $326 million in share repurchases at an average price of $413.53 per share, $201 million in cash dividends and $55 million in CapEx. During the quarter, we also entered into a definitive agreement to acquire D-Fend Solutions, an industry leader in counter-drone solutions, for $1.5 billion, which we expect to close during the second half of this year. And we are targeting to close the previously announced acquisition of Bell Canada's LMR networks services business in late Q4. Moving to segment results. In the Products and SI segment, sales were up 15% versus last year, driven by growth in MCN and Video, with MCN exceeding our expectations in public safety LMR and continued strength in Silvus. Revenue from acquisitions was $210 million and foreign currency tailwinds were $19 million during the quarter. Operating earnings were $599 million or 31.4% of sales, up 470 basis points from 26.7% in the prior year, driven by higher sales and improved operating leverage, inclusive of higher direct material costs and the IEEPA refunds. Excluding refunds, operating margin expanded 150 basis points during the quarter. Some notable Q2 wins and achievements in this segment include a $36 million P25 device and SVX order for a U.S. federal customer; a $20 million P25 device order for Atlanta, Georgia; and a $17 million P25 device order for Miami-Dade Corrections in Florida. We also won 3 large awards for our next-generation P25 infrastructure. A $52 million order from a U.S. federal customer, a $34 million order with a state and local customer in the Southeast region, and a $22 million order for St. Louis County, Missouri. All of these demonstrate the continuing customer demand for D-Series and a strong foundation for future Software and Services growth. In Software and Services, revenue was up 10% compared to last year, driven by growth across all 3 technologies. Revenue from acquisitions was $33 million and foreign currency tailwinds were $16 million in the quarter. Operating earnings in the segment were $433 million or 35.3% of sales, up from 33.8% last year, driven by higher sales, inclusive of favorable mix. Some notable Q2 highlights in this segment include a $24 million P25 services order for a North American energy company, a $20 million Command Center order for the State of Montana Department of Justice, a $16 million P25 services order for Fulton County, Georgia, and a $14 million Command Center order for Hillsborough County, Florida. During the quarter, we also secured 2 large wins for our mobile video ecosystem. A $25 million order with the Florida Highway Patrol and a $24 million order with the Kansas City Police Department successfully converting these 2 high-profile agencies, inclusive of our core responder AI assist capabilities. Looking at regional results. North America Q2 revenue was $2.2 billion, up 9% with growth across all 3 technologies. International Q2 revenue was $923 million, up 25% versus last year, driven by strong double-digit growth across all 3 technologies. Moving to backlog. Ending backlog for Q2 was $15.6 billion, up $1.5 billion or 11% versus last year, driven by record Q2 orders. Sequentially, backlog declined $71 million, primarily driven by revenue recognition for the U.K. Home Office. In the Products and SI segment, backlog increased $329 million versus last year due to strong demand in MCN and Video. Sequentially, backlog decreased $99 million, driven by strong MCN shipments during the quarter. In Software and Services, backlog increased $1.2 billion compared to last year, driven by strong demand for multiyear contracts across all 3 technologies. Sequentially, backlog increased $28 million, primarily driven by strong demand in Command Center and Video, partially offset by revenue recognition for the U.K. Home Office. Turning next to our outlook. We expect Q3 sales growth of approximately 8% with non-GAAP earnings per share between $4.39 and $4.44 per share. This assumes a weighted average diluted share count of approximately 168 million shares and an effective tax rate of approximately 23%. For the full year, we now expect revenue of approximately $12.975 billion, up from our prior guidance of $12.8 billion, along with non-GAAP earnings per share between $17.62 and $17.72 per share, up from our prior guide of $16.87 to $16.99 per share. This full-year outlook assumes a weighted average diluted share count of approximately 168 million shares and an effective tax rate between 22% and 22.5%. It also assumes favorable FX of about $100 million, which is unchanged from our prior expectations. The $175 million raise in our full-year revenue expectations is driven by MCN, including approximately $100 million from Silvus, which we now expect to generate approximately $850 million in full-year revenue. The remainder of the increase we expect in MCN is a reflection of the continued strong demand for public safety LMR. With these increased top-line expectations, we now expect double-digit growth for both segments and all 3 technologies for the full year. Products and SI is expected to now grow 11%, up from our prior guidance of 8% to 9%. And Software and Services is expected to grow 11%, up from our prior guidance of 10% to 11%. And from a technology perspective, MCN is now expected to grow between 10% and 11%, up from our prior expectations of 8% to 9%. Video is expected to grow 11%, while in Command Center, we continue to expect approximately 15% growth. Before I turn the call back to Greg, I wanted to provide an update around tariffs and memory costs. We now expect the tariff impact to be neutral for the full year as the IEEPA refunds we recorded in Q2 offsets the $60 million in tariff headwinds that we had planned for this year. And regarding memory, we now anticipate our direct memory spend to be approximately $150 million this year, up from $50 million last year. Our teams continue to successfully navigate this challenging supply environment, carrying higher inventory and collaborating closely with our key suppliers to secure continuity of supply. We still expect gross margins to be comparable to last year as the now improved tariff outlook I mentioned, offsets the increased memory cost expectations since our last call. And for full-year operating margins, we now expect approximately 170 basis points of expansion, up from 100 basis points previously. Finally, our balance sheet remains strong and gives us plenty of headroom and flexibility on capital allocation. As we previously highlighted, we expect to raise approximately $1 billion of incremental debt in the form of senior notes and term loans to finance the D-Fend acquisition, and we still expect to finish the year with a net debt-to-EBITDA leverage at approximately 2x, which is similar to where we ended last year. With that, I would now like to turn the call back to Greg. Gregory Brown: Thanks, Jason. I'd like to conclude with a few final thoughts before we open it up for Q&A. First, Q2 was superb, and I'm extremely pleased with our execution. Revenue was up 13% with significant operating margin expansion, and we drove just under $500 million in operating cash flow. Additionally, we achieved record Q2 orders and backlog, putting us in a strong position heading into the second half of this year. Second, we're seeing strength across our safety and security ecosystem. Our video business continues to perform well, particularly in mobile video, where, as Jason mentioned, we secured 2 significant orders from Florida Highway Patrol and Kansas City Police Department. These deals were highly competitive and what's most encouraging is that both of these large agencies are first-time users of our body-worn camera and in-car video solutions. In addition, Command Center continues its strong momentum as customers are increasingly adopting our software and AI assist solutions to simplify their complex emergency response workflows. Third, Silvus is performing exceptionally well, powering leading-edge MANET connectivity for unmanned systems and battlefield communications. And pending regulatory approvals, we're also looking forward to the acquisition of D-Fend, an industry leader in counter-drone solutions, which goes beyond simple detection and differentiating itself through non-kinetic cyber takeover mitigation capabilities that are increasingly critical for public safety. When you consider Silvus' leading-edge MANET communications for defense, and D-Fend's leading-edge detection and mitigation for public safety, I think we're very well positioned to address our customers' rapidly growing needs for unmanned systems in defense and counter-drone solutions in public safety. And finally, in addition to our strong results and momentum, our balance sheet and continued robust cash flow enable us to be flexible in how we deploy capital and drive long-term value, both organically and through targeted acquisitions. I feel very good about where we are and the increased guidance for the year reflects our confidence. I'll now turn the call back over to Brian. Brian Piotrowski: Thank you, Greg. Before we begin taking questions, I would like to remind callers to limit themselves to 1 question and one follow-up to accommodate as many participants as possible. Operator, would you please remind our callers on the line how to ask a question? Operator: [Operator Instructions] Our first question will come from Tim Long with Barclays. Timothy Long: I got a question on Silvus and then I'll follow up with one on Video. For Silvus, obviously, another raise here, that's great to see, and demand seems really strong there. Greg or Jack, could you just touch upon some of the capacity increases you guys are undertaking? What does that mean for the flow of this business? Are we still limited by capacity? And what would that mean for Silvus as we look out the next year or 2? And then I'll follow up after that. Jason Winkler: Sure, Tim. Let me just dimensionalize Silvus too in terms of its performance. It did about $210 million in Q1, about $230 million in Q2. And as you heard us on the call, we raised the year to about $850 million. And Jack can talk about some of the things we're doing around capacity expansion. John Molloy: Yes, Tim. So the first thing we did was within our Los Angeles site, we added capacity there, specifically a second floor. I think you read, Tim, that we announced the construction of a facility, a new manufacturing facility in Salt Lake City, which we're very excited about. And consistent with what we said before, we'll start to see the benefit of that in 2027. But the increased guide for Silvus this year takes into account our current capacity, and we'll live within that. I think one of the things we're also pleased with, Tim, is we've doubled the size of the sales force. So it just continues to put more balls in play for us. Timothy Long: Okay. That's great. And then just wanted to touch on the Video business. Pretty strong quarter. Just looking at the complexion, it looks like a lot more product [Audio Gap] some of the prior quarters, so not as much software service. So could you just talk a little bit about that mix and what that means in the quarter? And does that lead us towards a little bit more growth on the software side in the future? Anything on that mix and the take from that? Appreciate it. John Molloy: Tim, you broke up a little bit, but I think you're asking about the mix and performance of Software versus Products and SI there. Video. Video -- so first of all, we're very pleased with where we're at, and we actually grew 12% during the quarter in total, and we bumped up our guide to 11% from 10% to 11%. So overall, performing even better than we had expected. In terms of the mix, at the half, both Software and Services and products are performing well. S&S software specifically for that part of the business is up double digits, and we expect software to be up double digits in the second half as well. We've seen strong camera sales. That's what's in part driving 2 quarters in a row now of strong products. But the overall mix as we step back to the year, it reflects the -- what we expect, the investments that Mahesh and team are making in our cloud and hybrid offer and the increased sales coverage that Molloy has. So we're happy with where we're at. By the way, mobile video -- as we mentioned on the call, mobile video also expectations are very good. Operator: Your next question will come from Joseph Cardoso with JPMorgan. Joseph Cardoso: Maybe for my first one, and perhaps I'm jumping ahead here and looking at the fourth quarter. But when I do the back of the envelope math on the implied fourth quarter revenue outlook, it embeds a pretty nice acceleration both sequentially and year-over-year. So maybe you can just help me think through the drivers behind that uptick that you guys are embedding into the guide, maybe thinking about it from a demand perspective across the portfolio. Is there anything in particular that's driving kind of that acceleration here as you think about the exit trajectory for the year? And then also maybe just a quick clarification. Are you guys including acquisitions that haven't been closed yet into that guidance? And then I do have a follow-up. Gregory Brown: So Joe, to answer the last part first, the guidance we're providing for the full year and the beat and the raise reflect the assets we have today. Love the fact that we're, as Jason mentioned, guiding the year up $175 million for the full year on top line revenue. All of that is pretty much MCN, of which $100 million is Silvus, $75 million of LMR. The confidence is also informed by the overperformance in Q2, which we beat consensus by $130 million. Why did we do that? It's because of better conversion and strong demand. That said, the second half as we look, remains unchanged. We've always planned for a strong second half. That's informed by the visibility of what we have. It's informed by double-digit orders growth again expected in Q2, expected double-digit orders in the second half. And when you decompose kind of our expectations, there are some specific ship acceptance and product releases around the infrastructure D-Series that are coming in Q4 that marry up with the conversion expectations of Jack's sales team, which informs that strong Q4. And lastly, I'd say LMR is strong. LMR was stronger than we thought in Q2. But by the way, we still expect the LMR business to grow in the second half of this year, 10% as well. So just really strong growth, great orders performance and feel good about where we are now with our expectations between now and the end of the year. Joseph Cardoso: No. Awesome color, Greg. I really appreciate all of that. And then maybe as my second one here, gross margin stepped up meaningfully in the quarter, even excluding the tariff benefit, but you guys are still guiding stable gross margin outlook for the full year. Maybe can you bridge the 2Q performance against that? Like what are the puts and takes relative to the headwinds from the cost inflation that you're highlighting versus maybe the tailwinds from mix and pricing levers? And how does that shake out as we progress through the year to kind of get us to this more stable gross margin outlook for the full year? Jason Winkler: Sure. So favorable mix has been a growth driver for us for a number of quarters, and we expect that to continue. Customers are adopting more feature-rich solutions, and that's in part what helps drive our growth. In terms of headwinds, I mentioned on the call that memory, which last year was $50 million, we now expect to be $150 million. That's up from 90 days ago. So that $100 million of increase, a large part of that's going to be faced in the second half because of timing, because of inventory and the positions we had to begin the year. So that's a little color around the headwinds. And that's -- with the offsets we plan, we're still able to maintain comparable gross margins for the year and to grow OE for the company at 170 bps with contributions at OE from both segments. Operator: Your next question will come from Andrew Spinola with UBS. Andrew Spinola: I think there's obviously a lot of interest in the second half ramp in the LMR business coming into this quarter. But the second question that I typically have been getting is trying to understand if you put all this COVID backlog shifting behind us and the sharp ramp in the second half, how are we looking in terms of [Audio Gap] in the LMR business. Is there anything where we can look at the product side and think increases in officers or international markets, anything that can drive that -- or infrastructure D-Series, anything that can drive that business to an accelerated growth rate over the medium term? Jason Winkler: Yes. Thanks for the question. So certainly, coming out of the last call, there's been a lot of interest in LMR. We're pleased with where public safety LMR is, which is MCN, the technology minus Silvus. We had growth in the quarter. We had continued order strength, as Greg mentioned. We overperformed in the quarter, and we increased the year $75 million, whereas now we expect this year's LMR growth to be better than last year's. And we've always planned for a ramp in the second half, and that's consistent with, in part, product releases. The D-Series deals that we've been talking about, we talked about 3 of them on the call and more prior to that, require staging and implementation and going and getting to sites. That's planned for the second half. And in addition, Jack, you've got some product releases happening in D-Series that will make it available to more customers in the second half. John Molloy: UHF will begin shipping in Q4, Jason. Jason Winkler: So nothing's changed in our expectations for first half, second half contribution. If anything, we've overperformed our expectations in the first half. Gregory Brown: And Andrew, I would say just kind of overall, when you think about the trend of public safety systems or let's just call it LMR and what those platforms afford our customers. Historically, it was always around mission-critical voice. Now with the adoption of APX NEXT, it incorporates broadband for 5G and broadband applications. Now our latest APX NEXT radio is LEO compatible, adding another band for rural coverage for low earth orbit satellite. You have the device refreshes with APX NEXT. Now we introduced the D-Series, which is the first time we've upgraded the infrastructure in a dozen years. And that's informing part of the strong growth in Q4, given ship release of new infrastructure. And then look, we'll see -- you're going to see us continue to do things around this multidimensional multimodal platform called public safety LMR. And I just think that more and more customers see the criticality of LMR. They're making investments in LMR and MCN. We too are as well, both organically and inorganically. And while we mentioned D-Fend and the announcement of that deal, that D-Fend was a highly sought-after asset. It's all about leading counter-drone technology, not just detect and track and identify but surgically do cyber takeover, which very, very few people do, and we think D-Fend does the best. We'll work the traps on the regulatory approvals, and there's still work to be done there. But we're excited about that asset as well, which we had mentioned to you at the time we announced the deal. We expect it to be about $185 million in revenue. It has historically a CAGR revenue growth of 50% over the last 3 years. But again, as you think about LMR, as you think about critical networks, as you think about public safety platforms and the unique ecosystem and capability we're building, it's not just what we have today, but what we expect to have shortly, and that's exciting as well. Joseph Cardoso: Appreciate that. One follow-up question, Greg. AI has been in the market now. You've had a product for maybe a couple of quarters. Some of the competitors have had different types of products, similar to yours, some more analytical. How is the industry accepting AI? Is it performing to expectations, both your product and across the industry in terms of acceptance and just performance? Gregory Brown: I think it's performing well. We talk about AI in the context of embedding it in pretty much everything we do, specifically in the context of public safety around the individual personas. So how does AI -- how does it get implemented and productized through the lens of a public safety responder law enforcement offer? How does it get instantiated with a dispatcher? How does it get implemented through a real-time crime center? And I think Mahesh has done a great job of building it out both on-prem as well as hybrid solutions, and I think our traction is quite good. Mahesh Saptharishi: The other thing I'd say and maybe echoing one of the key points that Greg just made is AI is no longer a nice to have, it's a need to have within each of our applications. And we have taken that philosophy right from the beginning where it's not an over-the-top solution. It is embedded deeply within each of our platforms. Yes, it's integrated. And just to sort of punctuate that point, 100% of our VESTA emergency call handling solutions in Q2 were at the assist tier, which is effectively the tier of our solution that includes all the AI capabilities. The same is true across CAD records as well. So it is becoming something that is key and embedded within each of those platforms. And that, in turn, is meaningfully raising our ASPs across the board. A couple of other things that I think that we have done and we take great pride in is we introduced this notion of AI labels. And that is, I think, quite important for our customers because they would like to know what the status of data ownership is, what type of models are being used? Does it run on-prem? Does it run on cloud? What elements of data are used to compute various things that they are seeing from a decision standpoint. We are very transparent and open about what it is that they do. And across the board, we also offer free training on demand for our customers to effectively use those capabilities in whatever workflows that they choose to use it for. And we are seeing great acceptance across the board with that. Operator: Your next question will come from Adam Tindle with Raymond James. Adam Tindle: Okay. I just wanted to maybe start this time last quarter, I think a lot of us were surprised by the PSI operating margin in Q1. S&S had an upside to offset, but I think the composition of that quarter was a little different than investors thought. Here we are 90 days later with a huge rebound in PSI margins on a sequential basis. So maybe just as a starting point, Jason, could you walk through sort of the drivers that led to this level of improvement? And you've mentioned memory costs increasing. I know in the past, as you had cost increases, it makes sense for you to start raising price to correspond with that. I wonder how you're thinking about pricing as a lever as well going forward. Jason Winkler: Sure, Adam. So part of Q2, as we mentioned, was stronger conversion with orders brought in by the sales team that we're able to execute in. A lot of that has to do with devices. And so we had more devices shipments. We have a higher inventory position, by the way, that's helping us get to strong quick turn levels. It's helping us navigate the memory challenges on pricing. So part of the improvement in op margin quarter-over-quarter had to do with the mix towards devices, which we were able to turn within the quarter. That's a key driver as to the overperformance and the better margins. The second part of your question around levers that we have. I mean memory as a content to LMRs are pretty small. It's a more material contributor or item in Video. We have made some surgical price increases on high memory content items in Video, for example, like video servers. And we'll continue to look at that as an overall offset for the portfolio, but continuing to secure the supply that we need, of course, paying higher prices, but it's enabling us to meet the demand that we're seeing. We'll continue to look at it as a possibility going forward. Adam Tindle: Got it. Maybe just continuing that thought as a follow-up, Greg, investors are looking at the product backlog being down sequentially, but also your positive commentary on the outlook for the product business, in particular. And I think Jason's guidance suggests that the back half is actually going to accelerate in terms of the product growth. So with product backlog down sequentially versus this acceleration implied in revenue, what are investors maybe missing if they over fixate on the backlog trends? Gregory Brown: No. Look, we're thrilled. I know you're focused on the sequential, but we love the year-over-year performance. And at the end of the day, this is more about, as Jason and we have said since the beginning of the year, the MSI revenue story becomes more one of conversion than backlog. Now having said that, love the fact that Q2 was another double-digit orders quarter. Love the fact that the back half on orders growth is expected to be double digits. But if you want to specifically look at product backlog, look, as we sit here in August, at the end of the day, I expect product backlog to be up at the end of this year versus last year. So -- but I think it's more -- backlog is a component, but the story more about our growth is overall demand, which is stronger conversion, which is stronger and double-digit orders growth. Jason Winkler: And Adam, to your point, the product backlog of the high 3s is a strong place to be complemented by the double-digit order set that's in front of us and that we've been capturing and that the pipeline supports going forward. And that's the setup for how we expect things to play out in the second half of the year. Adam Tindle: That's helpful. Congrats on awesome quarter. Gregory Brown: Yes. Thank you, Adam. Appreciate it. Operator: Your next question will come from George Notter with Wolfe Research. George Notter: I wanted to dig into the Silvus progress a bit more. Obviously, continues to really do well. I know -- I think you said, Jack, that you increased the sales force or doubled the size of the sales force. But I'm just curious, like as you look out, where you're seeing opportunities, what geos, what applications? Anything more you can tell us about the underlying demand trends there and customer interest would be great. Gregory Brown: We could tag team it. But contextually, George, I think the good news is the overall demand is driven by international demand and what I would characterize as kind of a macro global defense modernization. I think you see our growth driven by NATO countries, EU defense spending. Germany is a theater in particular, that's strong. Obviously, Ukraine that's in conflict and growing demand in the U.S. and Indo-Pacific. You take that strong demand and couple it with the earlier question around capacity expansion. Jack has done a great job more than doubling the sales force. I think you'll see supply chain efficiencies increase as well. We have the new capacity facility in Salt Lake City that comes online in early Q1. Could not be more pleased with that asset. It's been a year, I think a year tomorrow or a year the following day that we actually closed on it. It's performing better than we thought. We knew demand would be strong. It's even stronger than we thought. And I think a tip of the hat to Jack and his team and Vivek and the Silvus team in L.A., it's been superb and thrilled to have it. And look, it's proving out, I think, the thesis behind -- we were very disciplined and intentional with that Silvus acquisition. I would say the same thing about D-Fend. We think in Silvus it's the leading player and the leading-edge technology in unmanned. And similarly, once we run the traps on the regulatory approvals, we think D-Fend is unique, specifically around cyber takeover and mitigation, which is a unique characteristic, and we love both of those assets. John Molloy: Yes. The only thing I'd build on is, listen, the secret sauce here is Spectrum Dominance 2.0 software. It's not only we talked about MANET technology being high bandwidth, which enables various forms of multimodal throughput on the battlefield, but it's anti-jam. It's a low probability of intercept and detect. But just specifically, the U.S. DOW just ran some trials and Silvus received exceptional scoring in terms of anti-jam testing results. And I think as we see in highly congested environments when us versus our competition get put to the test, I think it's just further testament to what Vivek and the technical team have built there. And then we've added, as we talked about being a scale player, we're invested in additional capacity, go-to-market. We continue to extend and invest in R&D, not only in the waveform, but in the software aspects of it. And they're firing on all cylinders, I think just to echo what Greg said, we're really proud of what they've accomplished. Operator: Your next question will come from Meta Marshall with Morgan Stanley. Meta Marshall: I wanted to ask a question on APX NEXT and just the software subscriptions that you're seeing kind of attached to that. In the past, you've noted somewhere around $300 per year. Just wanted to see what applications are either getting the most traction or if there's any update to that number? And then maybe as a follow-up question, just kind of any traction with SPX. Jason Winkler: Sure. Thanks, Meta. And you're right. We expect 300,000 subscribers by the year-end '26. That would be up from about 200,000 by end of '25. So strong growth. The pricing of the apps is around 300. It's gone up a little bit with the advent of some new apps. And I'll let Jack talk about where the apps that the customers like best, but they are definitely -- it's a driver. It's now going to be almost $100 million ARR business by year's end. John Molloy: Yes. I think just, Meta, in terms of those things, it's SmartConnect, which essentially enables a user who may be going out of their jurisdiction to expand their coverage capacity, Smart Programming and then Location continues to be -- as we think about accountability, Location continues to be an application that gets consumed. Related to SPX, and Mahesh may have something he wants to add. SPX traction, we're really proud. We've now got 150 customers operational with SPX. You heard Greg and Jason talk about Florida Highway Patrol and Kansas City, Missouri. I want to point out that those -- we didn't go in and extend those customers. They're not existing customers we extended. Those were new RFPs that we secured against our competition in addition to St. Joseph County, Indiana, who used to deal with one of our competitors and now signed on because they love the story of our full ecosystem. That's just in North America in Q2. You look at what we've done internationally, where we're over 20 countries right now in body-worn camera, name a couple of big ones, over 20,000 users with the Sao Paulo Military Police. Moroccan Gendarmerie, a Nordic National Police Department. And I think we continue to get momentum with our reach and trust that we have internationally. Gregory Brown: And those successes were competitive flips. John Molloy: They absolutely were, right. The other point I'd make around APX NEXT and SPX is they are paired together. So when we talk about an SPX win, that's paired with customers that are using APX NEXT. So it's yet another combination that's powerful for both parts of the portfolio. Operator: Your next question will come from Tomer Zilberman from Bank of America. Tomer Zilberman: Guys, I wanted to go back to the LMR discussion. I think you mentioned earlier that you expect the segment to grow 10% in the second half. I mean that's a really strong number. That's on par with the growth that you were seeing a couple of years ago when you had the benefit of both the North American refresh cycle and also the supply chain environment, which is driving up orders. I guess the question is, as it pertains to your commentary around APX NEXT, is that driving another cycle this time around? And I think a while ago, you gave us a disclosure that APX NEXT was about 25% of public safety shipments. Is there any update to that number you can give us? Jason Winkler: Sure. So we talked about a growth driver of the second half ramp being infrastructure, which is D-Series and the timing of the deployments and the new offer of UHF, which is coming to market. Conversion and quick turn for devices continues to be strong. It was stronger than we expected in Q2, and we expect it to be strong in the second half with continued momentum in customers choosing APX NEXT, which comes to us at a premium at the time of sale and also with the ARR subscription that Meta just asked about. John Molloy: Yes. I mean the only other thing that we haven't talked about is APX NEXT has historically been a police phenomenon and a credit to Mahesh and his team. But in Q2, we announced the APX -- the first APX NEXT XN, which actually puts us in the first NF -- National Fire Protection 1930 certification. So we have an APX NEXT device that we can now bring to the fire market as well. Operator: Your next question will come from James Fish with Piper Sandler. Ryan Abbott: This is Ryan on for James Fish. On the drone side, any pickup in pipeline post-World Cup? And now that you have D-Fend and Silvus' pillars here, how are you feeling about mitigation and prevention strategies that we could see MSI add organically or inorganically going forward? Gregory Brown: Well, Ryan, we don't have D-Fend yet. We are expecting that transaction to close in the second half. But think about it, Silvus is unmanned defense. D-Fend is counter-drone technology for public safety. So different technologies and different verticals. I love D-Fend. I love -- it was an engagement that took multiple months. As I mentioned a few minutes ago, it's a leading-edge, highly sought-after asset because, look, we hear all these things about drones. It's one thing to detect them. A lot of people can do that. D-Fend can detect, it can track, it can identify, but then how do you mitigate it? And how do you mitigate it in a public safety context or critical infrastructure context without collateral damage? You can't use bombs or bullets or kinetic. You have to find a different way. What we loved about D-Fend and their creativity and ingenuity is they do it through surgical cyber takeover. So they track it, identify it, take it over and take the communications link over and then neutralize that threat with no residual damage, no threat to public safety communities. That's what we think is best-in-class. So I think there's a lot of that. By the way, if you look at FIFA, you mentioned Ryan, World Cup, it was -- D-Fend was in virtually all of those theaters, all of those stadiums providing cyber mitigation, which played a critical role. And I read a report several days ago that there was over 700 different drones detected over multiple sites through -- over the course of FIFA. I think D-Fend was a meaningful component to that detection and mitigation. So we feel very good about it. John Molloy: Yes. And if you look at just in the last 7 days, the Department of Homeland Security came out and announced a $1.5 billion unmanned aircraft contract. 2 tiers, first of which was systems, the second of which was comprehensive services. It's important to point out that there was multi-vendors selected on the systems, but only one, D-Fend, that actually provides cyber mitigation system. Greg, I think, eloquently pointed out, to keep the public safe to bring the drone down safely, there's only one way to do it, and that's cyber, and they were the company selected there. Ryan Abbott: And then a quick follow-up. How are state and local municipal budgets holding up for 2026? And are you seeing any hesitation in large-scale APX NEXT upgrades? Or is the funding environment still highly supportive? John Molloy: No, 2026 the budgets have been -- continue to be very good. We've actually -- what we do this time of year, midyear because we start to look at '27 budgets, which have now been floated in some cases, approved. The good news for us is in 2027 for state and local, public safety budgets are growing faster than government budgets, both state and local. And then if we think about software as it relates to public safety and the funding attributed to software for public safety, that's growing even faster than money being allocated to public safety. So we think all in for '27, generally conducive to our business. Operator: Your next question will come from Matt Niknam with Truist. Matthew Niknam: Congrats on the quarter. I have one follow-up and one, I guess, more main question. So the follow-up is you talked about double-digit order growth in the second half of the year. I just want to clarify, is that for the Products and SI segment? Or is that for the total business? And then broadly speaking around supply chain, just wondering if you can talk about the visibility you've got with your suppliers in terms of being able to procure what you need to accommodate demand and whether there could be upside to the guide if you're able to get access to more profit this year? Jason Winkler: Matt, I'll answer the second question first. I think you're getting at memory. Memory for us is a challenge in what we're having to pay for it. We're paying more. This year, we're going to spend $150 million. Last year it was $50 million. The availability has been good and continues to be good because we're working with our vendors to secure the continuity of supply. We are carrying higher inventory and capturing its availability. And I'd remind those on the call that our LMR, specifically MCN portfolio does use a simpler form of RAM. It's not the latest, greatest high-speed DRAM, and we can substitute it. And so that's allowing us to have more shots on goal, and we are attaining and getting the continuity of supply we need. We are having to pay more. That said, we're still growing operating margins 170 bps expected this year with comparable gross margins. To answer the first part of your question, the double-digit growth is expected in products, specifically Products and SI in the second half. Operator: [Operator Instructions] Your next question will come from Irvin Liu with Evercore ISI. Jyhhaw Liu: Congrats on the nice set of numbers. I had one and a follow-up as well. Just given the continued outperformance of Silvus, I wanted to check whether you held an updated view on where the Silvus TAM stands today. I think most recently, you indicated the TAM is currently about $3 billion and expected to double over the next 4 to 5 years. But, I guess, I just wanted to better understand whether your growth here on Silvus was more TAM-driven or share-driven. I mean it sounds like the latter to me. Gregory Brown: I would say it's more share-driven actually than TAM-driven. We don't have any information that would materially change the TAM that you just outlined that we have quantified. I think the performance of Silvus is around share gain and execution and not addressable market expansion per se. Jyhhaw Liu: Got it. And for my follow-up, you discussed the D-Series infrastructure product as a contributor of LMR strength for Q4 looking ahead. Just given that this is the first infrastructure product in 12 years, are you seeing any sort of benefits of a pent-up demand for infrastructure broadly that can potentially unlock multiyear infrastructure refresh cycle? Jason Winkler: Yes, we are. And just to dimensionalize it, infrastructure is a little less than 1/4 of the LMR business. And to have a D-Series, as Greg mentioned, that's new, refreshed, Jack can talk about the customer attributes they like the best and to have them investing in it means that it's expected to be a growth driver, not only for Products and SI by the way. Most of the customers that are investing in this infrastructure are signing up for new 5-, 10-year Software and Services wrappers around it. So we'll see the benefit of that over time as well. Jack, in terms of features and what's really uptaking? John Molloy: Yes. I think we've made coverage more efficient. It's more energy efficient at the site, which is critically important to a lot of customers right now as they think about kind of greening their networks. We also introduced our ASTRO Site Satellite Resiliency, which essentially improves the resiliency and redundancy of the networks that incorporates low earth orbit satellite just as a backup to a backup, if you will. But I think the most important thing for us as we look at it is it's -- our customers are betting on us for the long term. It's Minnesota Department of Transportation for 5 years. Maryland, a 10-year renewal. It's Australia -- we had a customer down in Australia signing on for 10 years. So I think it's a continued validation. We've had 3 big states that have signed on with D-Series in the last 3, 4 quarters and 3 major American cities that have signed on. We think there's more to come. Our customers are excited about it. And by the way, there's 2 rails. They're investing in the network, but they're also, as Jason pointed out earlier, continuing to think about the refreshing of the devices. And I think it's a testament to our product team on how they envision these things working together. And then obviously, the services that we provision for our customers to wrap around those things. Operator: Your final question will come from Louie DiPalma with William Blair. Louie Dipalma: Following up on the last question, should the D-Series upgrade cycle be considered a onetime boost to the second half growth rate for this year? Or should it carry over into next year such that LMR will remain in positive growth territory? John Molloy: So think of D-Series and infrastructure as a slower-moving building part of our growth story. It's because if you -- I just -- I talked about 3 states. We have over 40 statewide networks in the United States, and we have 10 of the provincial networks in Canada. And so you can just do the math on that, Louie, we've got a lot more to do. And these are multiyear plans. And the reality of it is, is a lot of these people sit down, particularly with infrastructure and look at a 10-year plan. And so they're all not going to happen at once. It won't be just a fourth quarter thing. This will be something that will continue to refresh networks, quite frankly, into the 2030s. Louie Dipalma: Great. So it should be a positive catalyst also for next year, right? John Molloy: Yes. Louie Dipalma: And my second question, the Silvus acquisition has been a home run and many investors have wondered why Silvus didn't go the IPO path rather than selling to you because the growth has been so exceptionally strong. I wanted to ask about this Motorola effect and your ability to supercharge growth. So D-Fend has elite technology for radio frequency counter-drone mitigation. And do you expect the combination of D-Fend's technology with Motorola's brand and the cross-selling and the manufacturing capacity that you can replicate with D-Fend what you've done with Silvus? Gregory Brown: Yes. And you hit on it. It's exactly right. So I think Silvus -- we think Silvus is a one-of-one asset. I mentioned that -- and that acquisition took a long time. We were really thorough. We had -- I mean, it was almost a year in its engagement. We were very intentional. We were very thorough. What is it about Motorola Solutions that can make Silvus grow better than they can on their own? Number one is the brand equity and the installed base of the customers that we have in this case, particularly [ MoDs ] internationally, where we immediately give that asset, which is, you call elite, I agree, visibility into theaters maybe they didn't have initially. Second, its go-to-market sales motion. Molloy has already more than doubled the sales force. Third is coals on the fire and expansion and focus around government affairs, both in North America and internationally. Fourth is being able to buy supply chain, components, efficiency, capacity in a way that Motorola can bring to bear the back office, the IT, the systems, the manufacturing, low unit cost component acquisition. So net-net, we can have it grow -- it can grow faster through sales and it can scale faster with the infrastructure of Motorola Solutions. And lastly, highly culturally compatible, RF centricity, different market, great product. The Silvus team has been superb, not just because of the revenue and the growth, and we love all that. It's great. The people are outstanding. The technical depth, superb. They see around corners. They look and we look to extend the lead we believe we have even further from a technology expansion point. And I think we feel very similarly about D-Fend, the elite technology around cyber takeover, around not just detection and tracking and identification, but unique mitigation. Once again, by the way, an Israeli company, we've been in Israel over 60 years. We have 600 people there, plus or minus. So the density of our presence in Israel, the commonality around cultural innovation, not just in Israel, but in RF and that cultural creativity that Mahesh's LMR team and mission-critical team brings, I think will be a similar story with D-Fend. I think we can do more with D-Fend than anyone else can or they could do on their own. And I think that was largely in part why the 2 companies decided to get together. I'm super excited about the opportunities in public safety counter-drone for that asset once we're able to close it after regulatory approval. Operator: This concludes our question-and-answer session. I will now turn the floor over to Mr. Greg Brown, Chairman and Chief Executive Officer for any additional comments or closing remarks. Gregory Brown: I just want to say thank you to all the Motorola people listening in, to our customers. Thank you to our partners. It was a great quarter, great quarter with double-digit orders, strong revenue growth, operating margin expansion, generating just under $500 million just in Q2 of cash flow. We talked about the strength of mission-critical networks and land mobile radio specifically. That informed our beat in Q2, which was $130 million, which was $100 million from LMR and $30 million driven by Silvus. That's informing the full-year raise of $175 million, $100 million from Silvus, generally $75 million from LMR. The business is strong. The product refresh cycle is good, both on devices and on infrastructure. I think the supply chain team, I want to say thank you as well to Motorola. We made a conscious decision to carry more inventory. We were thoughtful about getting ahead of memory and aligning that with conversion that allowed us to execute. We think that will continue in the back half. And lastly, I just love the momentum we have as we sit here today for the rest of this year. Thanks for listening. Look forward to talking to you next November. Operator: This does conclude today's teleconference. A replay of this call will be available over the Internet within 3 hours. The website address is www.motorolasolutions.com/investor. We thank you for your participation and ask that you please disconnect your lines at this time. Before you buy stock in Motorola Solutions, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Motorola Solutions wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Motorola Solutions (MSI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Axon surged 6% after Q2 revenue of $904M beat estimates, with AI Era Plan revenue up nearly 700% and contracted bookings rising 41% to $15B. Motorola beat estimates and acquired counter-drone firm D-Fend for $1.5B, while Tyler Technologies has cratered 30% YTD despite 22 straight quarters of strong SaaS growth. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Shares of Axon Enterprise (NASDAQ:AXON) are up 6% in midday trading Tuesday, trading near $634 after opening the session at $596. The move extends a post-earnings rebound and pushes the stock into positive territory for the year, up 5% YTD. The catalyst traces back to last week's August 5 Q2 report, which is still being digested by the sell side. Axon delivered revenue of $904.39 million, up 35.3% year over year and beating the $876.46 million consensus, while adjusted EPS of $1.88 topped the $1.84 estimate. Management raised the full-year 2026 revenue growth outlook to 32% to 34% from the prior 30% to 32%, per the company's 8-K filing. The subscription engine did the heavy lifting. Platform Solutions revenue jumped 123% to $149.84 million, AI Era Plan revenue grew nearly 700%, and Dedrone counter-drone revenue crossed $100 million for the first time. Future contracted bookings sit at $15.10 billion, up 41%. Analyst repositioning followed, with Northcoast Research lifting its price target to $680 from $650 and the Street's average target now sitting at $691.83 against 18 buy ratings. The initial gross-margin scare tied to climbing memory prices and Dedrone hardware scaling has been reframed as the price of growth, with margins expected to rebuild in Q4. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) The peer set tells a divided story. Motorola Solutions (NYSE:MSI) reported the same day and also raised guidance, posting Q2 revenue of $3.13 billion (up 13%) and non-GAAP EPS of $4.41 versus a $3.85 estimate. CEO Greg Brown called it "exceptional across the board." Motorola also announced a $1.5 billion acquisition of counter-drone specialist D-Fend Solutions, echoing the same counter-UAS tailwind driving Axon's Dedrone momentum. MSI shares are up 1% today to $465 and are up 21% YTD. Tyler Technologies (NYSE:TYL) sits at the opposite end. The govtech vendor reported July 29, missing revenue estimates by 0.50% at $645.10 million despite SaaS revenue climbing 21.7% for a 22nd consecutive quarter above 20%. CEO Lynn Moore pointed to "record SaaS and total bookings", but the tape has been unforgiving: TYL is down 30% YTD and 46% over the past year, even after today's 1% bounce. Axon carries the premium valuation of the group at roughly $51.5 billion in market cap, versus Motorola's $76.9 billion and Tyler's $13.2 billion. Note that even after today's move, Axon shares remain down 29% from a year ago. Axon opened the day down, and saw most of its gains between 9:35 and 10 a.m. ET. There's no clear news to correspond with this move, and volume today is close to the average traded for the stock. Instead, price action around the company appears to be tied to its recent earnings. Wall Street has kept relatively stable EPS estimates for the company in 2027. 90 days ago the Street modeled $10.57. Today that number is $10.56. It will be interesting if the company's subscription success and growing backlog in excess of earnings will lead to some near-term earnings revisions. If that happens, it could form the next catalyst for Axon. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Interested in Motorola Solutions, Inc.? Here are five stocks we like better. Motorola Solutions reported a record second quarter, with revenue up 13%, non-GAAP EPS rising 24% to $4.41, and non-GAAP operating margin expanding to 32.9%. Growth was broad-based across Products and Systems Integration, Software and Services, LMR systems, Silvus and safety-security offerings. The company raised its 2026 outlook to approximately $12.975 billion in revenue and $17.62–$17.72 in non-GAAP EPS. Backlog reached a record $15.6 billion, while Silvus revenue expectations increased to about $850 million for the year. Motorola expects continued growth from the D-Series P25 infrastructure upgrade cycle and plans to close its $1.5 billion D-Fend Solutions counter-drone acquisition in the second half, funded partly with roughly $1 billion in new debt. Motorola's $1.5B Bet to Own the Skies Motorola Solutions (NYSE:MSI) reported record second-quarter sales and earnings for 2026, with revenue rising 13% as demand increased across its Products and Systems Integration and Software and Services segments. The company raised its full-year revenue and earnings outlook, citing continued strength in land mobile radio, or LMR, systems, the Silvus business and its broader safety and security portfolio. Chairman and CEO Greg Brown called the quarter “exceptional,” saying growth was supported by double-digit increases in both operating segments and across the company’s three technologies. He said mission-critical network sales exceeded expectations in public-safety LMR, while Silvus continued to perform strongly. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling These 3 Tech Companies Are Suddenly Paying Bigger Dividends Second-quarter revenue increased 13%, with acquisitions contributing $243 million and favorable foreign exchange contributing $35 million. GAAP operating earnings were $809 million, or 25.8% of sales, compared with 25% in the prior-year period. Non-GAAP operating earnings totaled just over $1 billion, rising 26% from a year earlier. Non-GAAP operating margin was 32.9%, an increase of 330 basis points. The result included a $60 million benefit from refunds related to the International Emergency Economic Powers Act, or IEEPA. Excluding that benefit, non-GAAP operating margin expanded 140 basis points. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High AXON: Competition Intensifies as Motorola Makes $4.4B Acquisition GAAP earnings per share rose to $3.33 from $3.04 a year earlier. Non-GAAP EPS increased 24% to $4.41, up from $3.57. CFO Jason Winkler said the increase reflected higher operating earnings and a $0.25-per-share benefit from the IEEPA refunds, partly offset by higher interest expense. Operating cash flow was $469 million, up $197 million from the prior year, while free cash flow increased $190 million to $414 million. The company attributed the gains primarily to higher earnings, partly offset by increased inventory investment. → No Hangover: Revisiting Microsoft One Week After Earnings Products and Systems Integration revenue grew 15% year over year, led by mission-critical networks and video. Segment operating earnings reached $599 million, or 31.4% of sales, compared with 26.7% a year earlier. Excluding the IEEPA refunds, segment operating margin expanded 150 basis points. The company highlighted several major Products and Systems Integration awards, including: A $36 million P25 device and SVX order from a U.S. federal customer. A $20 million P25 device order from Atlanta and a $17 million device order from Miami-Dade Corrections. Next-generation P25 infrastructure awards valued at $52 million, $34 million and $22 million for a U.S. federal customer, a Southeastern state and local customer, and St. Louis County, Missouri, respectively. Software and Services revenue increased 10%, with growth across all three technologies. Segment operating earnings were $433 million, or 35.3% of revenue, compared with 33.8% in the prior-year quarter. Notable wins included a $24 million P25 services order from a North American energy company, a $20 million command center order from the Montana Department of Justice, and mobile video orders valued at $25 million from the Florida Highway Patrol and $24 million from the Kansas City Police Department. Brown said the Florida Highway Patrol and Kansas City Police Department were first-time users of Motorola Solutions’ body-worn camera and in-car video products. The awards included the company’s responder AI Assist capabilities. Ending backlog reached a record $15.6 billion, up 11% or $1.5 billion from a year earlier. Backlog declined $71 million sequentially, primarily due to revenue recognition for the U.K. Home Office program. Software and Services backlog rose $1.2 billion from the prior year, driven by demand for multiyear contracts across the company’s technologies. Winkler said Silvus generated approximately $210 million of revenue in the first quarter and $230 million in the second quarter. Motorola Solutions now expects Silvus to generate about $850 million of revenue for the full year. COO Jack Molloy said the company has expanded capacity at Silvus’ Los Angeles site and is constructing a manufacturing facility in Salt Lake City, with benefits expected in 2027. Motorola Solutions has also doubled the Silvus sales force, executives said. The company expects its D-Series P25 infrastructure platform to contribute to second-half growth. Molloy said UHF products are expected to begin shipping in the fourth quarter. Executives described the D-Series upgrade cycle as a multiyear opportunity, noting that infrastructure upgrades and associated long-term software and services agreements could continue into the 2030s. Motorola Solutions raised its full-year revenue outlook to approximately $12.975 billion from $12.8 billion previously. It now expects non-GAAP EPS of $17.62 to $17.72, compared with prior guidance of $16.87 to $16.99. The company expects third-quarter sales growth of approximately 8% and non-GAAP EPS of $4.39 to $4.44. For the full year, it expects Products and Systems Integration revenue to grow 11% and Software and Services revenue to grow 11%. By technology, management forecasts mission-critical networks growth of 10% to 11%, video growth of 11%, and command center growth of about 15%. Winkler said the $175 million increase in full-year revenue guidance is expected to come from mission-critical networks, including about $100 million from Silvus and the remaining amount from public-safety LMR demand. The company expects tariff impacts to be neutral for the year, as the second-quarter IEEPA refunds offset its previously anticipated $60 million of tariff headwinds. Motorola Solutions now expects direct memory spending of roughly $150 million in 2026, compared with $50 million in 2025. The company has increased inventory and worked with suppliers to secure supply continuity. Despite higher memory costs, management expects full-year gross margin to be comparable with last year and operating margin to expand by approximately 170 basis points. The company also said it expects to close its $1.5 billion acquisition of counter-drone company D-Fend Solutions during the second half, subject to regulatory approvals. Motorola Solutions plans to finance the acquisition with approximately $1 billion of incremental debt and expects year-end net debt to EBITDA leverage of about two times. Motorola Solutions, Inc is a provider of mission-critical communications and analytics solutions for public safety and commercial customers. The company designs, manufactures and supports a range of communications equipment and software aimed at enabling first responders, government agencies and enterprises to coordinate and operate reliably in high-pressure environments. Its offerings emphasize secure, resilient connectivity and situational awareness for organizations that require dependable voice, data and video communications. Product lines include land mobile radio (LMR) systems and handheld and vehicle-mounted radios used by police, fire and emergency medical services; broadband push-to-talk and LTE-based solutions; command-and-control center software for incident management and records; and video security and analytics systems. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Motorola Solutions Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Motorola Solutions, Inc. MSI delivered a 13% year-over-year increase in second-quarter sales and raised its 2026 revenue and earnings outlook again. Record orders lifted backlog to $15.6 billion, while demand across mission-critical communications, software and public-safety technology supported the stronger second-half outlook.The earnings update also highlights the factors that could shape the next phase of growth: backlog conversion, acquisition integration, margin performance and elevated supply-chain costs. Motorola Solutions, Inc. price-consensus-eps-surprise-chart | Motorola Solutions, Inc. Quote Motorola now expects 2026 revenues of approximately $12.98 billion, up from its prior outlook of $12.8 billion. Non-GAAP EPS guidance was raised to $17.62-$17.72 from $16.87-$16.99. Management said the higher outlook reflects continued strength in Mission Critical Networks, including stronger expectations for Silvus, and sustained demand for public-safety land mobile radio solutions.For the third quarter, Motorola expects revenues to grow approximately 8% year over year and non-GAAP EPS to range from $4.39 to $4.44. The company also expects operating margin expansion of approximately 170 basis points for 2026.Motorola Delivers Broad-Based Q2 GrowthProducts and Systems Integration revenue increased 15% year over year to $1.91 billion, while Software and Services revenue rose 10% to $1.23 billion. Growth extended across Mission Critical Networks, Video Security and Access Control and Command Center offerings.Non-GAAP EPS increased 24% to $4.41, while non-GAAP operating margin expanded to 32.9%. Excluding a $60 million benefit from IEEPA tariff refunds, operating margin still expanded 140 basis points despite elevated direct material and memory costs. Second-quarter backlog reached a record $15.6 billion, up 11% year over year following record orders. Software and Services backlog increased $1.2 billion, while Products and Systems Integration backlog rose $329 million. The backlog provides visibility into future sales and supports management’s approximately 8% third-quarter revenue-growth outlook.Motorola generated $469 million in operating cash flow and $414 million in free cash flow during the quarter. Higher earnings drove the increase, partly offset by greater investment in inventory Motorola agreed to acquire D-Fend Solutions for $1.5 billion, adding counter-drone technology to its safety and security portfolio. Silvus adds adaptive networking, while Hyper and Exacom expand emergency response and cloud-native recording capabilities. The planned Bell Canada LMR network services acquisition is expected to broaden managed-services reach.Motorola is also expanding AI-enabled public-safety capabilities through Assist, Interpreter Agent and Live Audio Streaming. Interpreter Agent enables real-time language translation, while Live Audio Streaming provides live calls, AI-generated summaries and transcriptions.For industry context, Axon Enterprise, Inc. AXON is another public-safety technology company with exposure to connected devices and software, while L3Harris Technologies, Inc. LHX has exposure to mission-critical communications and government customers. These two tickers provide relevant peer context for investors assessing the broader public-safety technology theme. Motorola Solutions currently carries a Zacks Rank #2 (Buy), while its Growth Score is C and VGM Score is D. Its Value Score and Momentum Score are also D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Rank is designed to capture near-term earnings-related signals, while the Zacks Style Scores provide additional context on value, growth and momentum characteristics. The combination gives MSI a favorable earnings-revision signal but less support from the broader Style Score framework.The earnings update strengthens the growth narrative, but the investment case still depends on execution. Backlog conversion, acquisition integration, supply-chain costs and the pace of third-quarter growth will be important indicators for investors evaluating whether the latest guidance increase can translate into sustained results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report Axon Enterprise, Inc (AXON) : Free Stock Analysis Report L3Harris Technologies Inc (LHX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Motorola Solutions, Inc. MSI reported strong results for the second quarter of 2026, with non-GAAP earnings of $4.41 per share, up 24% year over year and ahead of the Zacks Consensus Estimate of $3.86 by 14.25%. Revenues increased 13% to $3.13 billion and topped the consensus estimate of $3 billion by 4.36%.The quarter benefited from broad-based growth across both operating segments and all three technologies, while record orders lifted backlog to a new second-quarter high of $15.6 billion, providing solid visibility into future growth. Motorola Solutions, Inc. price-consensus-eps-surprise-chart | Motorola Solutions, Inc. Quote Motorola generated second-quarter sales of $3.13 billion, driven by strength across Products and Systems Integration as well as Software and Services. Revenue growth was supported by robust demand for mission-critical communications, video security and command center offerings.Products and Systems Integration revenues increased 15% year over year to $1.91 billion, fueled by higher Mission Critical Networks and Video Security sales. Software and Services revenues rose 10% to $1.23 billion as all three technology categories contributed to growth. Demand remained healthy across the company's public safety and enterprise markets. Products and Systems Integration benefited from stronger-than-expected public safety land mobile radio demand and continued momentum from Silvus.Software and Services also recorded healthy expansion, supported by growth in Mission Critical Networks, Command Center and Video. During the quarter, Motorola secured several notable customer wins, including major P25 infrastructure, command center and mobile video contracts, highlighting continued customer investment in mission-critical communications and public safety technologies. Non-GAAP operating earnings climbed 26% year over year to $1.03 billion. Non-GAAP operating margin expanded 330 basis points to 32.9%, reflecting higher revenues, improved operating leverage and a $60 million benefit related to International Emergency Economic Powers Act (IEEPA) tariff refunds recorded during the quarter.Non-GAAP earnings per share increased 24% from the prior-year quarter. Excluding the IEEPA refund benefit, management indicated operating margins still expanded by 140 basis points despite elevated direct material and memory costs.GAAP operating margin improved to 25.8% from 25% a year ago, while GAAP earnings per share increased 10% to $3.33. Motorola generated operating cash flow of $469 million during the quarter, up $197 million from the prior-year period. Free cash flow increased to $414 million as higher earnings more than offset increased inventory investments.The company continued returning capital to shareholders by repurchasing $326 million of stock at an average price of $413.53 per share while paying $201 million in dividends. During the quarter, Motorola also entered into a definitive agreement to acquire counter-drone technology provider D-Fend Solutions for $1.5 billion.Backlog reached a record $15.6 billion at quarter-end, increasing 11% year over year on record second-quarter orders. Products and Systems Integration backlog rose 10%, while Software and Services backlog increased 11%, supported by strong multiyear contract demand. Motorola ended the second quarter with $710 million in cash and cash equivalents and $8.42 billion in long-term debt. Management expects to raise approximately $1 billion of incremental debt to finance the pending acquisition of D-Fend Solutions and still expects to end 2026 with net debt-to-EBITDA leverage of approximately 2x, in line with the level at the end of 2025. Encouraged by strong execution and sustained customer demand, Motorola again raised its full-year 2026 guidance. The company now expects full-year revenues of approximately $12.98 billion, up from its previous outlook of $12.8 billion.Management now projects non-GAAP earnings between $17.62 and $17.72 per share for 2026 compared with prior guidance of $16.87-$16.99. The higher outlook reflects continued strength in Mission Critical Networks, including stronger expectations for Silvus, as well as sustained demand for public safety land mobile radio solutions.For the third quarter, Motorola expects revenue growth of approximately 8% year over year and non-GAAP earnings in the range of $4.39-$4.44 per share. The company also expects tariffs to have a neutral full-year impact after second-quarter IEEPA refunds offset anticipated tariff-related costs, while operating margin expansion is now projected at approximately 170 basis points for the year. MSI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Keysight Technologies, Inc. KEYS is scheduled to release third-quarter fiscal 2026 earnings on Aug. 18. The Zacks Consensus Estimate for earnings is pegged at $2.46 per share, suggesting growth of 43.02% from the year-ago reported figure.Keysight has a long-term earnings growth expectation of 19.44%. The company delivered an average earnings surprise of 9.46% in the last four reported quarters.Analog Devices, Inc. ADI is set to release third-quarter fiscal 2026 earnings Aug. 19. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, implying growth of 62.44% from the year-ago reported figure.Analog Devices has a long-term earnings growth expectation of 31.04%. The company delivered an average earnings surprise of 5.48% in the last four reported quarters.Applied Materials, Inc. AMAT is scheduled to release third-quarter fiscal 2026 earnings on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, suggesting growth of 35.48% from the year-ago reported figure.Applied Materials has a long-term earnings growth expectation of 32.44%. The company delivered an average earnings surprise of 6.06% in the last four reported quarters. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Motorola (MSI) reported $3.13 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 13.3%. EPS of $4.41 for the same period compares to $3.57 a year ago. The reported revenue represents a surprise of +4.36% over the Zacks Consensus Estimate of $3 billion. With the consensus EPS estimate being $3.86, the EPS surprise was +14.25%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Motorola performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- Products and Systems Integration: $1.91 billion compared to the $1.76 billion average estimate based on four analysts. The reported number represents a change of +15.4% year over year. Net Sales- Software and Services: $1.23 billion versus $1.24 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10.2% change. Sales- Mission Critical Networks (MCN)- Total: $2.28 billion compared to the $2.15 billion average estimate based on three analysts. Sales- Mission Critical Networks (MCN)- Software and Services: $713 million versus $708.67 million estimated by three analysts on average. Sales- Mission Critical Networks (MCN)- Products and Systems Integration: $1.57 billion versus the three-analyst average estimate of $1.42 billion. Sales- Video- Products and Systems Integration: $341 million compared to the $321.48 million average estimate based on three analysts. Sales- Command Center- Software and Services: $269 million versus the three-analyst average estimate of $275.12 million. Sales- Video- Software and Services: $243 million versus $255.56 million estimated by three analysts on average. Sales- Video- Total: $584 million compared to the $577.03 million average estimate based on three analysts. Net sales from products: $1.82 billion versus the two-analyst average estimate of $1.69 billion. The reported number represents a year-over-year change of +18.6%. Net sales from services: $1.32 billion versus the two-analyst average estimate of $1.31 billion. The reported number represents a year-over-year change of +6.7%. View all Key Company Metrics for Motorola here>>> Shares of Motorola have returned +4.4% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ViaSat (VSAT) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +70.00%. A quarter ago, it was expected that this provider of satellite and wireless networking technology would post earnings of $0.25 per share when it actually produced a loss of $0.02, delivering a surprise of -108%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. ViaSat, which belongs to the Zacks Wireless Equipment industry, posted revenues of $1.16 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.55%. This compares to year-ago revenues of $1.17 billion. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ViaSat shares have added about 135.9% since the beginning of the year versus the S&P 500's gain of 11%. While ViaSat has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ViaSat was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is breakeven on $1.19 billion in revenues for the coming quarter and $0.30 on $4.87 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Wireless Equipment is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Motorola (MSI), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This communications equipment maker is expected to post quarterly earnings of $3.86 per share in its upcoming report, which represents a year-over-year change of +8.1%. The consensus EPS estimate for the quarter has been revised 0.2% higher over the last 30 days to the current level. Motorola's revenues are expected to be $3 billion, up 8.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Viasat Inc. (VSAT) : Free Stock Analysis Report Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Company again raises full-year revenue and earnings outlook following record Q2 revenue, earnings and backlog Sales of $3.1 billion, up 13% versus a year ago GAAP earnings per share ("EPS")2 of $3.33, up 10% versus a year ago Non-GAAP1 EPS2 of $4.41, up 24% versus a year ago Operating cash flow of $469 million, up $197 million versus a year ago Record Q2 ending backlog of $15.6 billion, up 11% versus a year ago Entered into a definitive agreement to acquire D-Fend Solutions ("D-Fend") for $1.5 billion CHICAGO, August 05, 2026--(BUSINESS WIRE)--Motorola Solutions, Inc. (NYSE: MSI) today reported its earnings results for the second quarter of 2026. "Q2 was exceptional across the board," said Greg Brown, chairman and CEO, Motorola Solutions. "This performance, along with record Q2 orders, is driving very strong momentum into the second half of this year." KEY FINANCIAL RESULTS (presented in millions, except per share data and percentages) OTHER SELECTED FINANCIAL RESULTS Revenue - Sales were $3.1 billion, up 13% from the year-ago quarter driven by growth in North America and International. Revenue from acquisitions was $243 million and foreign currency tailwinds were $35 million in the quarter. The Products and Systems Integration segment grew 15% driven by growth in Mission Critical Networks ("MCN") and Video Security and Access Control ("Video"). The Software and Services segment grew 10% driven by growth in MCN, Command Center and Video. Operating margin - GAAP operating margin was 25.8% of sales, up from 25.0% in the year-ago quarter and Non-GAAP operating margin was 32.9% of sales, up 330 basis points from 29.6% a year ago. The increase in both GAAP and non-GAAP operating margin was driven by higher sales and improved operating leverage, inclusive of higher direct material costs and a $60 million benefit, or 190 bps, from IEEPA refunds recorded during the quarter. Taxes - The GAAP effective tax rate during the quarter was 24.8%, versus 24.3% in the year-ago quarter and the non-GAAP effective tax rate was 22.6%, versus 23.5% in the year-ago quarter. The decrease in the non-GAAP effective tax rate was primarily driven by a higher deduction for income generated from export sales recognized in the current quarter. Cash flow - Operating cash flow was $469 million, compared to $272 million in the year-ago quarter, and free cash flow was $414 million, compared to $224 million in the year-ago quarter. Both the operating cash flow and free cash flow for the quarter increased primarily due to higher earnings, net of non-cash charges and lower tax payments, partially offset by higher investments in inventory. Capital allocation - During the quarter, the company repurchased $326 million of common stock at an average price of $413.53 per share, paid $201 million in cash dividends and invested $55 million in capital expenditures. The company also entered into a definitive agreement to acquire D-Fend Solutions ("D-Fend"), an industry leader in counter-drone technology, for $1.5 billion. Backlog - The company ended the quarter with record Q2 backlog of $15.6 billion, up 11% or $1.5 billion from the year-ago quarter driven by record Q2 orders. Products and Systems Integration segment backlog was up $329 million, or 10%, driven primarily by strong demand in MCN and Video. Software and Services segment backlog was up $1.2 billion, or 11%, driven by strong demand across all three technologies. NOTABLE WINS AND ACHIEVEMENTS Products and Systems Integration $52 million P25 systems order for a U.S. federal customer $36 million P25 device and SVX order for a U.S. federal customer $34 million P25 system upgrade for a U.S. state and local customer $22 million P25 system upgrade for St. Louis County, MO $20 million P25 device order for Atlanta, GA $17 million P25 device order for Miami-Dade Corrections, FL Software and Services $25 million mobile video order for the Florida Highway Patrol $24 million mobile video order for Kansas City Police Dept, MO $24 million P25 services order for a North American energy company $20 million Command Center order for the State of Montana Dept of Justice $16 million P25 services order for Fulton County, GA $14 million Command Center order for Hillsborough County, FL BUSINESS OUTLOOK Third quarter 2026 - The company expects revenue growth of approximately 8% compared to the third quarter of 2025 and non-GAAP EPS between $4.39 and $4.44 per share. This assumes approximately 168 million of fully diluted shares and a non-GAAP effective tax rate of approximately 23%. Full-year 2026 - The company now expects revenue of approximately $12.975 billion, up from its prior guidance of $12.8 billion and non-GAAP EPS between $17.62 and $17.72 per share, up from the prior guidance of between $16.87 and $16.99 per share. This outlook assumes approximately 168 million of fully diluted shares and a non-GAAP effective tax rate between 22% and 22.5%. The company has not quantitatively reconciled its guidance for forward-looking non-GAAP measurements in this news release to their most comparable GAAP measurements because the company does not provide specific guidance for the various reconciling items as certain items that impact these measurements have not occurred, are out of the company’s control, or cannot be reasonably predicted. Accordingly, a reconciliation to the most comparable GAAP financial measurement is not available without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the company’s results. RECENT EVENTS MACROECONOMIC ENVIRONMENT UPDATE The global trade landscape continues to shift rapidly, including evolving tariffs and import/export regulations, such as restrictions around rare earth minerals, trade barriers and trade disputes. On February 20, 2026, a U.S. Supreme Court ruling invalidated tariffs imposed under the International Emergency Economic Powers Act ("IEEPA"). On April 20, 2026, the U.S. Customs and Border Protection launched a system to process IEEPA tariff refund claims. Following the implementation of this system, the company determined that the recovery of a portion of these refunds is now probable. Accordingly, during the quarter ended July 4, 2026, the company recognized a favorable adjustment of $60 million recorded within Cost of sales in its Condensed Consolidated Statements of Operations. In addition, the company is experiencing higher costs for memory in its products which is a result of substantial demand in the market driven by AI. As a result, the company continues to observe elevated volatility and uncertainty around the global supply chain. The company engages with global suppliers across a diverse network of locations around the world. The company is actively managing its inventory and continues to work with its global supply base to mitigate its exposure to elevated volatility and uncertainty from these rising memory costs, as well as global tariffs and import/export regulations that have developed, and which may continue to develop, to ensure supply continues at levels necessary to meet its current customer demand. The company expects inventory levels to remain elevated as it mitigates this dynamic supply chain environment. The current environment has led to increased costs on materials and components, for which the company continues to develop mitigation actions going forward. CONFERENCE CALL AND WEBCAST Motorola Solutions will host its quarterly conference call beginning at 4 p.m. U.S. Central Time (5 p.m. U.S. Eastern Time) on Wednesday, August 5. The conference call will be webcast live at www.motorolasolutions.com/investors. An archive of the webcast will be available for a limited period of time thereafter. CONSOLIDATED GAAP RESULTS (presented in millions, except per share data) A comparison of results from operations is as follows: USE OF NON-GAAP FINANCIAL INFORMATION In addition to the results presented in accordance with accounting principles generally accepted in the U.S. ("GAAP") included in this news release, Motorola Solutions also has included non-GAAP measurements of results, including free cash flow, non-GAAP operating earnings, non-GAAP EPS, non-GAAP operating margin, non-GAAP net earnings attributable to MSI, non-GAAP tax rate, and organic revenue. The company has provided these non-GAAP measurements to help investors better understand its core operating performance, enhance comparisons of core operating performance from period-to-period and allow better comparisons of its operating performance to that of its competitors. Among other things, management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results excluding these items because it believes these measurements enable it to make better period-to-period evaluations of the financial performance of its core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, GAAP measurements. Reconciliations: Details and reconciliations of such non-GAAP measurements to the corresponding GAAP measurements can be found at the end of this news release. Free cash flow: Free cash flow represents net cash provided by operating activities less capital expenditures. The company believes that free cash flow is useful to investors as the basis for comparing its performance and coverage ratios with other companies in the company's industries, although the company's measure of free cash flow may not be directly comparable to similar measures used by other companies. This measure is also used as a component of incentive compensation. Organic Revenue: Organic revenue reflects net sales calculated under GAAP excluding net sales from acquired business owned for less than four full quarters. The company believes organic revenue provides useful information for evaluating the periodic growth of the business on a consistent basis and provides for a meaningful period-to-period comparison and analysis of trends in the business. Non-GAAP operating earnings, non-GAAP EPS, non-GAAP operating margin and non-GAAP net earnings attributable to MSI each excludes highlighted items, including share-based compensation expenses and intangible assets amortization expense, as follows: Highlighted items: The company has excluded the effects of highlighted items including, but not limited to, acquisition-related transaction fees, tangible and intangible asset impairments, reorganization of business charges, certain non-cash pension adjustments, legal settlements and other contingencies, gains and losses on investments and businesses, Hytera-related legal expenses, gains and losses on the extinguishment of debt, adjustments to contingent earnout, and the income tax effects of significant tax matters, from its non-GAAP operating expenses and net income measurements because the company believes that these historical items do not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the company's current operating performance or comparisons to the company's past operating performance. For the purposes of management's internal analysis over operating performance, the company uses financial statements that exclude highlighted items, as these charges do not contribute to a meaningful evaluation of the company's current operating performance or comparisons to the company's past operating performance. Hytera-Related Legal Expenses: In 2017, the company filed a complaint against Hytera Communications Corporation Limited of Shenzhen, China; Hytera America, Inc.; and Hytera Communications America (West), Inc. (collectively, "Hytera"), in the U.S. District Court for the Northern District of Illinois (the "District Court"), alleging trade secret theft and copyright infringement, and seeking injunctive relief. In 2020, a jury decided in the company's favor, ultimately resulting in an award to the company of $543.7 million, plus $51.1 million in pre-judgment interest and $2.6 million in costs, as well as $34.2 million in attorneys' fees. In 2024, after both parties appealed to the U.S. Court of Appeals for the Seventh Circuit (the "Court of Appeals"), the Court of Appeals, among other items, affirmed the District Court's award of $407.4 million in damages under the Defend Trade Secrets Act, and directed the District Court to recalculate and reduce its award of $136.3 million in copyright infringement damages, which remains subject to ruling by the District Court. As of July 4, 2026, as a result of this civil litigation and 2020 bankruptcy proceedings by Hytera America, Inc. and Hytera Communications America (West), Inc., Hytera had paid $232 million against this award, $60 million of which was paid in the first half of 2026. These payments were recorded as a gain within Other charges within the Consolidated Statement of Operations. Further, in 2022, the District Court ordered Hytera to pay the company a forward-looking reasonable royalty on Hytera’s products ("I-Series") that use the company’s stolen trade secrets, applicable to I-Series products sold from July 1, 2019 forward. In 2024, the company received royalties of $61 million related to the I-Series products, which was recorded as a gain within Other charges within the Consolidated Statement of Operations. Beginning in 2025, a favorable ruling in a related legal proceeding in the District Court (which Hytera has subsequently appealed to the Court of Appeals) also ordered Hytera to pay the company for Hytera’s continued use of the company’s trade secrets and copyrighted source code in Hytera’s currently shipping products ("H-Series"), and Hytera has subsequently reported to the company approximately $116 million in royalties subject to the Court's order. While several aspects of the court proceedings related to the H-Series are subject to appeal, the company continues to seek collection of the amounts owed by Hytera through the ongoing legal process. Management typically considers legal expenses associated with defending the company's intellectual property as "normal and recurring." Since 2020, the company has believed that Hytera-related legal expenses have not been part of its "normal and recurring" legal expenses incurred to operate its business and has accordingly excluded such expenses from its GAAP operating Income. In addition, as any contingent or actual gains associated with the Hytera litigation are recognized, they will be similarly excluded from the company's non-GAAP operating income, consistent with the company's treatment of the approximately $15 million realized in 2022, $61 million realized in 2024, $157 million realized in 2025, and $60 million realized in the first half of 2026. The company believes after the jury award, the presentation of excluding both Hytera-related legal expenses and gains related to awards better aligns with how management evaluates the company's ongoing underlying business performance. Share-based compensation expenses: The company has excluded share-based compensation expense from its non-GAAP operating expenses and net income measurements. Although share-based compensation is a key incentive offered to the company’s employees and the company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues, the company continues to evaluate its performance excluding share-based compensation expense primarily because it represents a significant non-cash expense. Share-based compensation expense will recur in future periods. Intangible assets amortization expense: The company has excluded intangible assets amortization expense from its non-GAAP operating expenses and net earnings measurements primarily because it represents a non-cash expense and because the company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the company’s acquisitions. Investors should note that the use of intangible assets contributed to the company’s revenues earned during the periods presented and will contribute to the company’s future period revenues as well. Intangible assets amortization expense will recur in future periods. FORWARD LOOKING STATEMENTS This news release contains "forward-looking statements" within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as "believes," "expects," "intends," "anticipates," "estimates" and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent the company’s views only as of today and should not be relied upon as representing the company’s views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, Motorola Solutions’ financial outlook for the third quarter and full-year of 2026; and the impact of changes in the global trade environment, the dynamic supply chain environment and the memory market on Motorola Solutions' business, and Motorola Solutions' actions in response thereto (including with respect to inventory levels). Motorola Solutions cautions the reader that the risks and uncertainties below, as well as those in Part I Item 1A of Motorola Solutions’ 2025 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC’s website at www.sec.gov and on Motorola Solutions’ website at www.motorolasolutions.com/investors, could cause Motorola Solutions’ actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola Solutions, and factors that may impact forward-looking statements include, but are not limited to: (i) impact of current global economic and political conditions in the markets in which the company operates; (ii) increased areas of risk, increased competition and additional compliance obligations associated with the introduction of new or enhanced products and services in our segments; (iii) challenges relating to the use of artificial intelligence ("AI") in our products and services; (iv) impact of catastrophic events on our business or our customers' or suppliers' business; (v) the effectiveness of our strategic acquisitions, including the integrations of such acquired businesses; (vi) the inability of our products to meet our customers’ expectations or regulatory or industry standards, or actual or perceived systems or service failures of our products and services; (vii) our inability to purchase a sufficient amount of materials, parts, and components, as well as software and services, at acceptable prices to meet the demands of our customers, and any disruption to our suppliers or significant increase in the price of supplies; (viii) risks related to our large, multi-year system and services contracts; (ix) the global nature of our employees, customers, suppliers and outsource partners; (x) our use of third-parties to develop, design and/or manufacture many of our components and some of our products, and to perform portions of our business operations; (xi) the inability of our subcontractors to perform in a timely and compliant manner or adhere to our Human Rights Policy; (xii) inability to attract and retain senior management and key employees; (xiii) evolving and sometimes conflicting expectations from investors, customers, lawmakers, regulators and other stakeholders regarding social and sustainability considerations and disclosures; (xiv) challenges relating to existing or future legislation and regulations pertaining to AI, AI-enabled products and the use of biometrics and other video analytics; (xv) the impact, including increased costs and potential liabilities, associated with changes in laws and regulations regarding cybersecurity, privacy, data protection, data sovereignty and information security; (xvi) the impact of government regulation of radio frequencies; (xvii) regulations, laws and other compliance requirements and risks applicable to our U.S. government customer contracts and grants; (xviii) the impact, including increased costs and additional compliance obligations, associated with existing or future telecommunications-related laws and regulations; (xix) impact of product regulatory and safety, consumer, worker safety and environmental product compliance and remediation laws; (xx) impact of tax matters; (xxi) increased cybersecurity threats, a security breach or other significant disruption of our IT systems or those of our outsource partners, suppliers or customers; (xxii) our inability to protect our intellectual property or potential infringement of intellectual property rights of third parties; (xxiii) risks relating to intellectual property licenses and intellectual property indemnities in our customer and supplier contracts; (xxiv) our license of the MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M logo and all derivatives and formatives thereof from Motorola Trademark Holdings, LLC; (xxv) inability to access the capital markets for financing on acceptable terms and conditions; (xxvi) exposure to exchange rate fluctuations on cross-border transactions and the translation of local currency results into U.S. dollars; (xxvii) impact of returns on pension and retirement plan assets and interest rate changes; and (xxviii) the return of capital to shareholders through dividends and/or repurchasing shares. Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise. The company uses its website as a means of disclosing material, non-public information and for complying with the company's disclosure obligations under Regulation FD. Therefore, the company encourages investors to monitor the Investor Relations page of the company's website at www.motorolasolutions.com/investors, and review the information the company posts on that page. About Motorola Solutions | Solving for safer Safety and security are at the heart of everything we do at Motorola Solutions. We build and connect technologies to help protect people, property and places. Our solutions foster the collaboration that’s critical for safer communities, safer schools, safer hospitals, safer businesses, and ultimately, safer nations. Learn more about our commitment to innovating for a safer future for us all at www.motorolasolutions.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805793374/en/ Contacts MEDIA CONTACT Matt SchulerMotorola Solutions+1 [email protected] INVESTOR CONTACT Brian PiotrowskiMotorola Solutions+1 [email protected]