MSI · Motorola Solutions, Inc.

Motorola Solutions delivered a strong first quarter in 2026, with sales of $2.7 billion, up 7% year-over-year, driven by 18% growth in the Software and Services segment, partially offset by 1% growth in Products and Systems Integration. The company achieved a record first-quarter backlog of $15.7 billion, up 11%, reflecting robust demand across all technologies. Non-GAAP operating margin improved 50 basis points to 28.8%, benefiting from higher sales and operating leverage, though partially offset by higher supply chain costs. GAAP operating margin declined to 19.3% due to an increase in the contingent Silvus earnout and higher intangible amortization. Non-GAAP EPS grew 6% to $3.37, while GAAP EPS fell 14% to $2.18. Management highlighted the quarter as an outstanding start to the year, citing broad-based demand. The company raised its full-year 2026 revenue guidance to approximately $12.8 billion (from $12.7 billion) and non-GAAP EPS to $16.87-$16.99 (from $16.70-$16.85). For Q2 2026, the company expects revenue growth of about 8.5% and non-GAAP EPS of $3.82-$3.88. Cash flow metrics were slightly lower year-over-year, with operating cash flow of $451 million and free cash flow of $389 million, due to increased inventory investments and higher interest and tax payments. The company also completed two small acquisitions (Exacom and Hyper) for $90 million and announced a definitive agreement to acquire Bell Canada's LMR networks services business for approximately $500 million, expected to close in Q4 2026. Overall, the results and raised guidance signal strong operational momentum and confidence in the business outlook.