Motorola Solutions, Inc. 8-K

Summary

Q3 2026 results with Q4 guidance. Demand for safety and security solutions drove growth in both segments and record orders; sales rose 12% Y/Y.

Q4 revenue growth is guided at ≈13% Y/Y vs Q3’s +12%; non-GAAP EPS is guided at $5.47-$5.52 vs $4.69 in Q3. For FY2026, the company raised its revenue and non-GAAP EPS outlook again and increased its operating cash flow expectation.

Developments

• D-Fend Solutions, a counter-drone technology business, was acquired for $1.3B net of cash acquired, primarily funded with $950M of new long-term senior notes. The price was ≈1.7x quarter-end cash of $774M at 10/03/2026, after the acquisition.
• DeepNeuronic, whose artificial intelligence software turns live camera feeds into real-time operational insights, was acquired for $29M net of cash acquired, or 3.7% of quarter-end cash of $774M at 10/03/2026, after the acquisitions.
• Products and Systems Integration wins included a $140M Project 25 systems and device order for the Federal Bureau of Prisons, a $98M device order for a U.S. federal customer and a $63M system and device order for Nashville and Davidson County.
• Software and Services wins included a $139M, 10-year Louisiana order for Project 25 services, mobile video and Command Center, and a $78M, 8-year mobile video award for a U.S. federal customer.

Key Figures

• Products and Systems Integration sales grew 12% Y/Y, driven by Mission Critical Networks and Video Security and Access Control; Software and Services sales grew 13%, driven by Mission Critical Networks, Command Center and Video. Organic revenue, which excludes sales from acquired businesses owned for less than four full quarters, increased 5%; acquisition sales contributed $211M and foreign currency contributed $11M.
• GAAP operating margin declined to 23.0% from 25.6%, primarily due to an $87M increase in the contingent earnout for Silvus following strong business performance. Non-GAAP operating margin rose 200 basis points to 32.5%; share-based compensation, the largest Q3 non-GAAP EPS adjustment, was $103M, or $0.62 per diluted share.
• Higher tax and interest payments drove the quarterly declines in operating and free cash flow, partly offset by higher earnings net of non-cash charges. The company repurchased $94M of shares at an average $457.07 per share, paid $200M in dividends and added $2B to its repurchase authorization; weighted-average diluted shares were 167.4M vs 169.0M. Cash was $774M and total debt was $10.1B at 10/03/2026.
• A favorable tariff-refund adjustment of ≈$70M was recorded in cost of sales during 9M 2026. The company also reported higher memory costs driven by market demand for artificial intelligence and expects inventory to remain elevated as it manages supply-chain volatility.

Against earlier guidance (derived from earlier filings)

Guidance

Guidance changes, derived from earlier filings

Metric	Period	Earlier guidance	Guidance now	Change
GAAP revenue	FY2026	≈$12.975B	≈$13.05B	raised
Non-GAAP EPS	FY2026	$17.62-$17.72	$17.94-$17.99	raised