Motorola Solutions Tops Revenue Estimates at $3.38 Billion; Adjusted EPS $4.69

Motorola Solutions (NYSE: MSI) reported third-quarter 2026 sales of $3.4 billion, up 12% from a year earlier and above the $3.28 billion analysts expected, with non-GAAP earnings per share of $4.69 against the $4.43 consensus estimate, according to an 8-K filed Wednesday, Nov. 4, 2026. GAAP diluted EPS was $3.06, down 8% from $3.33 a year earlier.

The company's GAAP operating margin was 23.0% of sales, down from 25.6%, which it attributed mainly to an increase in the contingent Silvus earnout. Non-GAAP operating margin rose 200 basis points to 32.5%.

Segments and backlog

Products and Systems Integration sales rose 12% to $2.12 billion, led by Mission Critical Networks and Video Security and Access Control. Software and Services sales rose 13% to $1.26 billion. Ending backlog reached a record $16.6 billion, up 14% from a year earlier, driven by record third-quarter orders.

Acquisitions added $211 million to revenue in the quarter. The company closed its $1.3 billion acquisition of D-Fend Solutions, a counter-drone technology business, during the period.

Guidance raised

For the fourth quarter, Motorola Solutions expects revenue growth of about 13% from a year earlier and non-GAAP EPS between $5.47 and $5.52. Analysts had expected $3.91 billion in fourth-quarter revenue and $5.50 in EPS.

For full-year 2026, the company now expects revenue of about $13.050 billion, up from its prior $12.975 billion forecast and slightly above the $13.03 billion consensus. It raised non-GAAP EPS guidance to between $17.94 and $17.99, from $17.62 to $17.72 previously, compared with the $17.72 analyst estimate. It also raised its full-year operating cash flow expectation to $3.050 billion.

Cash flow and capital return

Operating cash flow was $662 million in the quarter, down from $799 million a year earlier, and free cash flow was $589 million, compared with $733 million. The company cited higher tax and interest payments.

Motorola Solutions paid $200 million in dividends and repurchased $94 million of common stock during the quarter. It also announced a $2 billion increase to its share repurchase authorization.