Motorola Solutions, Inc. 8-K
PositiveEarningsGuidance raised
Record orders support a higher FY2026 outlook; agreement reached to acquire counter-drone provider D-Fend Solutions.
Filed 2026-08-05 16:12 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with Q3 and full-year guidance. Record quarterly sales and backlog, alongside record orders, supported strong momentum; Motorola Solutions raised its FY2026 revenue and non-GAAP EPS outlook. The company also agreed to acquire counter-drone technology provider D-Fend Solutions for $1.5B.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Sales | $3.13B | $2.77B | 13% |
| GAAP operating earnings | $809M | $692M | 17% |
| Non-GAAP operating earnings | $1.03B | $818M | 26% |
| GAAP net earnings attributable to Motorola Solutions, Inc. | $557M | $513M | 8.6% |
| Non-GAAP net earnings attributable to Motorola Solutions, Inc. | $737M | $602M | 22% |
| GAAP diluted EPS | $3.33 | $3.04 | 10% |
| Non-GAAP diluted EPS | $4.41 | $3.57 | 24% |
| Operating cash flow | $469M | $272M | 72% |
| Free cash flow | $414M | $224M | 85% |
| Ending backlog | $15.6B | $14.1B | 11% |
- GAAP operating margin rose 80 bp to 25.8%; non-GAAP operating margin rose 330 bp to 32.9%, driven by higher sales and improved operating leverage. The quarter included a $60M pre-tax IEEPA tariff refund benefit, equal to $0.25 per share and 190 bp of margin.
- Higher earnings and lower tax payments lifted cash flow, partly offset by increased inventory investment. The company expects inventory to remain elevated amid higher memory costs and supply-chain volatility.
- Share repurchases were $326M at an average $413.53 per share; weighted-average diluted shares fell to 167.2M from 168.8M. The company also paid $201M in dividends and spent $55M on capital expenditures. The D-Fend acquisition agreement is valued at $1.5B.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue growth Y/Y | Q3 2026 | ≈8% | — | — |
| Non-GAAP diluted EPS | Q3 2026 | $4.39-$4.44 | — | — |
| Revenue | FY2026 | ≈$12.975B | $12.8B | Raised |
| Non-GAAP diluted EPS | FY2026 | $17.62-$17.72 | $16.87-$16.99 | Raised |
Q3 assumptions: ≈168M diluted shares and a ≈23% non-GAAP tax rate. FY2026 assumptions: ≈168M diluted shares and a 22%-22.5% non-GAAP tax rate.
Investor Takeaways
- Q3 revenue growth and non-GAAP EPS versus the guided ranges will indicate whether Q2 momentum carries into the second half.
- D-Fend acquisition progress and delivery against the record backlog are upcoming developments to monitor.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3