Motorola Solutions, Inc.

Revenue for Q2 grew 13% year over year. GAAP operating earnings were $809 million, or 25.8% of sales, versus 25.0% a year ago; non-GAAP operating earnings were just over $1 billion, up 26%, with non-GAAP operating margin at 32.9%, up 330 bps. GAAP EPS was $3.33 versus $3.04 last year, and non-GAAP EPS was $4.41 versus $3.57, up 24%. Operating cash flow was $469 million and free cash flow was $414 million. Ending backlog was a record $15.6 billion, up $1.5 billion or 11% year over year. For Q3, the company expects sales growth of approximately 8% and non-GAAP EPS of $4.39-$4.44. For full-year 2026, Motorola now expects revenue of about $12.975 billion and non-GAAP EPS of $17.62-$17.72, with products and SI growth now expected to be 11%, software and services 11%, MCN 10%-11%, Video 11%, and Command Center about 15%.

Greg Brown characterized the quarter as “exceptional,” emphasizing broad-based demand, record orders, and strong execution. He said the business has momentum into the second half, driven by APX NEXT, D-Series infrastructure, Silvus, and growing adoption of the safety and security ecosystem. His tone was confident and constructive, repeatedly pointing to a strong pipeline and the company’s ability to convert demand into revenue.

Jason Winkler detailed the financial upside: Q2 revenue was up 13%, non-GAAP operating margin was 32.9%, and non-GAAP EPS was $4.41, aided by a $0.25 benefit from IEEPA refunds. He also cited $469 million of operating cash flow and $414 million of free cash flow, plus capital returns of $326 million in buybacks and $201 million in dividends, alongside $55 million of CapEx. On the outlook, he said tariff impact is now expected to be neutral for the year, direct memory spend is now expected to be about $150 million versus $50 million last year, gross margins should be comparable to last year, and full-year operating margin expansion is now expected to be about 170 bps.

Analysts pressed on the second-half ramp, especially in LMR, Silvus capacity, backlog conversion, and whether Q4 implies a sharp acceleration. Management said the stronger second half is supported by D-Series deployments, UHF release timing, continued APX NEXT adoption, and better-than-expected Q2 conversion; they also said the full-year guide reflects assets owned today, not pending deals. On Silvus, management said demand is being met with added capacity in Los Angeles, a new Salt Lake City facility that should benefit 2027, and a doubled sales force; they also said Silvus strength is more share-driven than TAM-driven. Questions on AI adoption and video mix were met with comments that AI is now embedded across offerings, 100% of VESTA emergency call handling solutions in Q2 were at the assist tier, and video software is growing double digits while strong camera sales are supporting product growth.