Motorola Solutions (MTLA) Q3 2026 Earnings Report
DE:MTLA Q3 2026 EPS Results
- Actual EPS
- EUR 4.18
- Consensus EPS
- EUR 3.95
- Beat/Miss
- Beat by +EUR 0.24
- One Year Ago EPS
- EUR 3.62
DE:MTLA Q3 2026 Revenue Results
- Actual Revenue
- EUR 3.01B
- Expected Revenue
- EUR 2.91B
- Beat/Miss
- Beat by +EUR 100.14M
- YoY Revenue Growth
- +12.20%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
Motorola Solutions's next earnings date is estimated for February 11, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive. Motorola Solutions reported double-digit growth across both segments and all three technologies, record orders and backlog, higher cash flow expectations, expanded margins and a third increase to full-year guidance. Management also described strong demand for LMR, Silvus, AI-enabled workflow applications and D-Fend. The principal challenges were higher memory and supply chain costs, a GAAP comparison affected by the Silvus earn-out charge, the delayed Bell Canada closing and the nonrecurrence of an IEEPA benefit, but management stated that it still expects continued margin expansion and strong growth.
For Q4, Motorola Solutions expects sales growth of approximately 13% and non-GAAP EPS between $5.47 and $5.52 per share, assuming a diluted share count of approximately 168 million shares and an effective tax rate of approximately 22.5%; for the full year, it now expects revenue of approximately $13.050 billion and non-GAAP EPS between $17.94 and $17.99 per share, with a diluted share count of approximately 168 million shares and an effective tax rate between 21.5% and 22%, Products and SI growth of 12%, MCN growth of 11%, operating margin expansion of 190 bps, operating cash flow of $3.05 billion, approximately $45 million of revenue contribution from D-Fend during the stub period, and year-end net debt to EBITDA leverage at around 2x; for 2027, the company expects revenue approximately in the ZIP Code of $14.25 billion, stronger organic growth over 2026, operating margin expansion, Silvus growth of about 30%, D-Fend growth of 40% to 50%, and D-Fend to be accretive next year.
- Record Q3 Revenue and Broad-Based GrowthQ3 revenue grew 12% and exceeded guidance, with record revenue in both segments and across all three technologies. Products and SI grew 12%, driven by public safety LMR and continued robust demand for Silvus, while Software and Services grew 13%.
- Strong Non-GAAP Profitability and Margin ExpansionNon-GAAP operating earnings were almost $1.1 billion, up 19% year over year, and non-GAAP operating margin increased 200 basis points to 32.5%, driven by higher sales and improved operating leverage.
- Non-GAAP EPS GrowthNon-GAAP EPS was $4.69, up 16% from $4.06 in the year-ago quarter, driven by higher operating margins.
- Record Orders and BacklogOrders grew over 20% year over year, with broad-based growth in both segments. Ending backlog reached an all-time record of $16.6 billion, up $2.1 billion or 14% versus last year and up $1 billion sequentially, driven by record Q3 orders in all three technologies.
- Segment Operating PerformanceProducts and SI operating earnings were $671 million, or 31.7% of sales, up from 29.3% last year. Software and Services operating earnings were $425 million, or 33.8% of sales, up from 32.6% last year.
- International and North American GrowthNorth America Q3 revenue was $2.3 billion, up 10%, with growth across all three technologies. International revenue was $1 billion, up 18% year over year, also driven by double-digit growth in all three technologies.
- Strong Cash Flow and Increased Cash GuidanceQ3 operating cash flow was $662 million and free cash flow was $589 million. Year-to-date operating cash flow was almost $1.6 billion, up versus last year, and full-year operating cash flow expectations were raised by $50 million from $3 billion to $3.05 billion.
- Raised Full-Year Revenue, EPS and Margin OutlookFull-year revenue guidance was raised to approximately $13.050 billion from $12.975 billion. Non-GAAP EPS guidance was raised to between $17.94 and $17.99 from between $17.62 and $17.72. Operating margin expansion guidance increased to 190 basis points from 170 basis points, with gross margins now expected to be up.
- Positive Fourth-Quarter OutlookThe company expects Q4 sales growth of approximately 13% and non-GAAP EPS between $5.47 and $5.52 per share. Management described the outlook as including its strongest and best Q4 ever.
- Large Customer Wins Across Products and SINotable wins included a $140 million P25 systems and device order with the Federal Bureau of Prisons, a $98 million P25 device and SVX order for a U.S. federal customer, a $63 million Nashville P25 order, a $56 million fixed video order, and a $39 million service order for a German unmanned systems provider.
- Large Software and Services AwardsNotable awards included a $139 million, 10-year Louisiana order covering P25 services, mobile video and command center solutions; a $78 million, eight-year mobile video award; a $59 million, six-year LMR P25 services order; a $51 million Los Angeles Police Department command center order; and a $27 million LMR P25 services renewal.
- Silvus Momentum and Capacity ExpansionSilvus had a very good Q3 of near $300 million and is expected to generate a little more than $900 million this year. Demand was described as strong across the U.S., NATO and the Indo-Pacific. The company doubled its sales force, doubled Los Angeles capacity, added an LC production line, and expects the Salt Lake City facility to begin contributing as it rolls into 2027.
- Silvus Lead-Time ImprovementSilvus lead times were reduced from approximately 20 to 22 weeks to around 12 weeks, or 12 to 14 weeks depending on the line. Management said it had no concerns about meeting next year's demand and had not lost business due to capacity constraints.
- D-Fend Acquisition Expands Counter-UAS CapabilitiesMotorola Solutions closed the D-Fend acquisition for $1.3 billion net of cash acquired. D-Fend adds drone detection and cyber-takeover-based mitigation capabilities to mission-critical networks and is expected to contribute approximately $45 million of revenue during the 2026 stub period and approximately $185 million on a full-year basis.
- D-Fend Growth and Margin ContributionManagement expects D-Fend revenue to grow 40% to 50% in 2027, with a positive and accretive contribution to the company's overall margin profile.
- LMR and Refresh-Cycle OpportunityLMR product orders grew 25% in the quarter. Motorola said it is in the early stages of a multiyear refresh across more than 1,300 P25 networks, with strong interest, robust engagement and a healthy pipeline. The company also expects LMR to grow strong double digits in Q4.
- Growth in APX NEXT, SVX and Recurring ApplicationsApproximately 200 agencies have ordered SVX, with one-third now utilizing DEMS. The company expects 300,000 users to be consuming its recurring applications by the end of 2026 and highlighted a $96 million APX and SVX deal in Q3.
- AI Assist Adoption and Workflow IntegrationCustomers are opting into the premium Assist tier, and nearly 100% of the workflow applications referenced were at the Assist tier. Management said AI Assist connects 911, CAD, consoles, radios and body-worn cameras, supporting incident summaries, report generation, search and workflow acceleration.
- D-Fend and AI Ecosystem IntegrationD-Fend is being integrated into Motorola's RTCC and Aware platforms. The integration combines drone detection from APX NEXT radios with D-Fend's counter-UAS detection and mitigation capabilities.
- 2027 Growth and Margin ExpectationsAt a high level, management expects 2027 revenue to be approximately $14.25 billion, with organic growth stronger than in 2026 and continued operating margin expansion despite increasing memory costs and supply chain headwinds. Silvus is expected to grow about 30% in 2027.
- Shareholder Returns and Balance Sheet PositionQ3 capital allocation included $200 million of dividends and $94 million of share repurchases. The Board approved a $2 billion increase to the share repurchase program. Management expects to end the year at around 2x net debt to EBITDA leverage.
DE:MTLA Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 11, 2027 | 2026 (Q4) | 4.91- | 4.09 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 3.954.18 | 3.62 | 15.52% (+0.56) | |
| Aug 05, 2026 | 2026 (Q2) | 3.443.93 | 3.18 | 23.53% (+0.75) | |
| May 07, 2026 | 2026 (Q1) | 2.893.01 | 2.84 | 5.97% (+0.17) | |
| Feb 11, 2026 | 2025 (Q4) | 3.884.09 | 3.6 | 13.61% (+0.49) | |
| Oct 30, 2025 | 2025 (Q3) | 3.433.62 | 3.34 | 8.56% (+0.29) | |
| Aug 07, 2025 | 2025 (Q2) | 2.993.18 | 2.89 | 10.19% (+0.29) | |
| May 01, 2025 | 2025 (Q1) | 2.692.84 | 2.51 | 13.17% (+0.33) | |
| Feb 13, 2025 | 2024 (Q4) | 3.473.60 | 3.48 | 3.59% (+0.12) | |
| Nov 07, 2024 | 2024 (Q3) | 3.023.34 | 2.85 | 17.24% (+0.49) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
