GET DAILY SIGNALSMotorola Solutions (MSI) Delivers Strong Q3 2026 Results and Raises Full-Year Guidance
Key Takeaways
- Motorola Solutions reported third-quarter 2026 revenue of $3.38 billion, up 12% year over year and ahead of the roughly $3.28 billion consensus estimate.
- Adjusted (non-GAAP) earnings per share (EPS) came in at $4.69, topping the approximately $4.43 analyst consensus.
- GAAP net earnings declined 9% to $512 million, or $3.06 per diluted share, reflecting higher operating costs.
- Both segments posted double-digit growth: Products and Systems Integration rose 12%, while Software and Services climbed 13%.
- The company cited record third-quarter orders and an all-time record ending backlog, prompting raised full-year revenue and earnings guidance.
- Fourth-quarter revenue guidance of about $3.82 billion at the midpoint landed slightly below the roughly $3.87 billion analyst consensus.
- For more detail on Motorola Solutions, explore its Major News, Today's Price Move, Price Targets, and Forecast pages.
- Looking for new trade ideas? Explore Trending AI Robots to see AI-driven strategies in action.
Earnings Context and Why It Matters
Motorola Solutions (MSI) provides public safety and enterprise security technology, including land-mobile radio, video security, and command center software. Its quarterly results give a useful window into public-sector and enterprise spending on safety infrastructure, a category that has held up well even with broader economic uncertainty. The company came into the report with a solid history of beating consensus EPS estimates in most recent quarters. I was watching to see whether double-digit growth across its segments would continue and whether record order activity would lead to higher full-year guidance. With a large backlog and recurring software and services revenue, this report carried extra weight for assessing the durability of MSI’s growth path into year-end and 2027. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the third quarter of 2026, Motorola Solutions posted revenue of $3.376 billion, a 12% increase from $3.009 billion in the prior-year period and above consensus expectations of approximately $3.28 billion. Growth was broad-based: Products and Systems Integration sales rose 12% to $2.118 billion, while Software and Services revenue increased 13% to $1.258 billion.
On a GAAP basis, net earnings attributable to the company were $512 million, or $3.06 per diluted share, down from $562 million, or $3.33 per diluted share, a year earlier. The decline reflected higher operating costs, including increased material and component expenses. On an adjusted (non-GAAP) basis, which excludes items such as share-based compensation and intangible asset amortization, net earnings rose to $785 million, or $4.69 per share, up from $686 million, or $4.06 per share, and above the consensus estimate of about $4.43. Adjusted operating margin was 32.5%, up roughly two percentage points year over year.
Management cited record third-quarter orders and an all-time record ending backlog. For full-year 2026, the company raised its revenue outlook to approximately $13.05 billion, up from a prior forecast of $12.975 billion, and lifted its adjusted EPS guidance to a range of $17.94 to $17.99, versus $17.62 to $17.72 previously. For the fourth quarter, the company guided to roughly 13% revenue growth and adjusted EPS of $5.47 to $5.52.
Market Reaction and Investor Sentiment
Motorola Solutions shares traded modestly higher following the release, extending a year-to-date advance of roughly 30% as of early November. The market’s response reflected a balanced read of the results: a clean top-and-bottom-line beat and raised full-year guidance were viewed positively, while the fourth-quarter revenue midpoint coming in slightly below consensus tempered some enthusiasm. Investors also weighed the decline in GAAP profitability and a lower free cash flow margin, which fell to 17.4% from 24.4% a year earlier, against the strength of record orders and backlog. Overall, sentiment remained constructive, with the company’s recurring software and services mix and expanding order book seen as supportive of longer-term growth.
Forward Outlook and Key Factors to Monitor
Following this report, investors will be watching whether Motorola Solutions can convert its record backlog into sustained revenue growth and improving profitability. Management’s raised full-year guidance signals confidence, but the slightly lighter fourth-quarter revenue outlook suggests some near-term conservatism. From what I see, the durability of double-digit growth will be the central question heading into 2027.
Key factors to monitor include the pace of order fulfillment and backlog conversion, particularly across public safety and enterprise security customers. Material and component cost inflation remains a headwind worth tracking, as it weighed on GAAP margins during the quarter. Additionally, the continued shift toward higher-margin software and services revenue will be an important driver of profitability, while free cash flow trends bear watching given the year-over-year decline. Investors may also track progress on the company’s litigation-related recoveries and any updates to capital allocation priorities.
Integrating AI Tools into My Research Process
I often turn to Tickeron’s AI Screener when reviewing earnings reports like this one. It helps me quickly filter peers in the technology and communications equipment space by technical patterns, fundamentals, and AI-driven signals, which adds useful context beyond the headline numbers and makes it easier to spot comparable setups across the sector.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
MSI in upward trend: price rose above 50-day moving average on October 20, 2026
MSI moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend. In 25 of 36 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 69%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 13, 2026. You may want to consider a long position or call options on MSI as a result. In 45 of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 58%.
The Moving Average Convergence Divergence (MACD) for MSI just turned positive on October 15, 2026. Looking at past instances where MSI's MACD turned positive, the stock continued to rise in 26 of 41 cases over the following month. The odds of a continued upward trend are 63%.
The 10-day moving average for MSI crossed bullishly above the 50-day moving average on October 26, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 53%.
Following a +1.64% 3-day Advance, the price is estimated to grow further. Considering data from situations where MSI advanced for three days, in 184 of 328 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MSI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 45%.
MSI broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MSI entered a downward trend on October 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 14 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 18 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 23 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 27 (best 1 - 100 worst), indicating outstanding price growth. MSI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: MSI's P/B Ratio (30.411) is slightly higher than the industry average of (6.313). P/E Ratio (38.210) is within average values for comparable stocks, (4.917). MSI's Projected Growth (PEG Ratio) (1.988) is slightly higher than the industry average of (0.778). Dividend Yield (0.010) settles around the average of (0.110) among similar stocks. P/S Ratio (6.325) is also within normal values, averaging (11.937).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of communication infrastructure, devices, accessories, software and services
Industry TelecommunicationsEquipment
Advertisement