Motorola slightly beats Q1 sales estimates on software and services growth, raises 2026 outlook

Motorola Solutions

07/05/2026 21:19

Overview

Public safety technology provider's Q1 sales rose 7%, slightly beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company raised full-year revenue and earnings outlook after record Q1 orders and backlog

Outlook

Motorola Solutions raises 2026 revenue outlook to $12.8 bln from $12.7 bln

Company lifts 2026 non-GAAP EPS guidance to $16.87-$16.99 from $16.70-$16.85

Motorola Solutions expects Q2 revenue growth of about 8.5% and non-GAAP EPS of $3.82-$3.88

Result Drivers

SOFTWARE AND SERVICES GROWTH - 18% sales growth in Software and Services segment, driven by Mission Critical Networks, Command Center and Video

INTERNATIONAL DEMAND AND ACQUISITIONS - Overall sales rose 7% primarily due to international growth, $219 mln in revenue from acquisitions, and $60 mln in foreign currency tailwinds

RECORD BACKLOG - Record Q1 ending backlog of $15.7 bln, up 11%, driven by record Q1 orders and broad-based demand

Company press release: ID:nBw8bypGQa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Slight Beat*
$2.71 bln
$2.70 bln (9 Analysts)
Q1 Adjusted EPS
Beat
$3.37
$3.24 (11 Analysts)
Q1 EPS
$2.18
Q1 Net Income
$366 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for Motorola Solutions Inc is $500.00, about 15.3% above its May 6 closing price of $433.66

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)