Motorola Solutions Q2 results beat estimates, FY outlook raised
Motorola Solutions Q2 results beat estimates, FY outlook raised
Overview
Public safety technology firm's Q2 sales rose 13%, beating analyst expectations
Adjusted EPS for Q2 climbed 24%, beating consensus
Company raised full-year revenue and earnings outlook after record Q2 results
Outlook
Motorola Solutions now sees full-year 2026 revenue at about $12.975 bln, up from $12.8 bln
Company raises full-year 2026 non-GAAP EPS outlook to $17.62-$17.72 from $16.87-$16.99
Company expects supply chain volatility and elevated inventory levels to persist due to higher memory costs
Result Drivers
SEGMENT GROWTH - Products and Systems Integration sales rose 15% and Software and Services sales rose 10%, driven by demand in mission critical networks, video security, and command center solutions
ACQUISITIONS AND CURRENCY - Revenue growth included $243 mln from acquisitions and a $35 mln foreign currency tailwind
TARIFF REFUND BENEFIT - Operating margin benefited from a $60 mln pre-tax gain related to IEEPA tariff refunds
Company press release: ID:nBw2FQr79a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $3.13 bln | $3 bln (9 Analysts) |
Q2 Adjusted EPS | Beat | $4.41 | $3.85 (12 Analysts) |
Q2 EPS |
| $3.33 |
|
Q2 Net Income |
| $557 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 2 "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 $503.00, about 13.6% above its August 4 closing price of $442.85
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago
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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.)