Motorola Solutions (MSI) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $3.376B, up 12%; non-GAAP EPS was $4.69, up 16%; record backlog reached $16.6B, up 14%, alongside record orders across all three technologies.

• Both segments delivered double-digit growth; FY2026 revenue, non-GAAP EPS and operating cash flow outlooks increased, with preliminary 2027 commentary pointing to stronger organic growth and margin expansion.

Financial highlights

• GAAP operating earnings were $777M vs. $770M; net earnings attributable to common shareholders were $512M vs. $562M; diluted EPS was $3.06 vs. $3.33.

• Non-GAAP operating earnings were $1.096B, up 19%; non-GAAP EPS was $4.69 vs. $4.06, up 16%.

• Gross margin was 52.4% vs. 51.6%; non-GAAP operating margin was 32.5%, up 200 bps, while GAAP operating margin was 23.0% vs. 25.6%.

• Q3 operating cash flow was $662M and free cash flow was $589M; nine-month operating cash flow was $1.582B, essentially level with the prior-year $1.581B.

• Organic revenue growth was 5%; reported growth included $211M of acquisition revenue and $11M of FX tailwinds.

Outlook and guidance

• Q4 revenue growth is expected at ~13%, with non-GAAP EPS of $5.47–$5.52; assumptions include ~168M diluted shares and a 22.5% non-GAAP tax rate.

• FY2026 revenue outlook rose to ~$13.050B from $12.975B; non-GAAP EPS outlook rose to $17.94–$17.99 from $17.62–$17.72.

• FY2026 operating cash flow outlook increased $50M to $3.050B; free cash flow estimate is $2.775B, and operating margin expansion is expected at 190 bps, up from 170 bps.

• Preliminary 2027 revenue expectation was ~$14.25B, with stronger organic growth than 2026 and operating margin expansion despite cost headwinds.

• 2027 commentary included Silvus growth of ~30% and D-Fend sales growth of 40%–50%; D-Fend is expected to be margin-accretive.