Motorola Solutions (NYSE:MSI) Updates Q2 2026 Earnings Guidance

Key Points

• Q2 and FY 2026 guidance raised: Motorola set Q2 EPS at 3.820–3.880 (above the 3.770 consensus) and updated FY 2026 EPS to 16.870–16.990, driving the stock uptick.
• Solid Q1 results and demand visibility: The company beat Q1 estimates with $3.37 EPS vs. $3.25 expected and $2.71B revenue, citing a record backlog and broad-based demand that supports the raised outlook.
• Notable insider selling: Executives have recently sold large positions (insiders sold 129,069 shares worth ~$60.8M in the last 90 days), which may be a watch item for investors.

Motorola Solutions (NYSE:MSI - Get Free Report) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 3.820-3.880 for the period, compared to the consensus earnings per share estimate of 3.770. The company issued revenue guidance of $3.0 billion-$3.0 billion, compared to the consensus revenue estimate of $3.0 billion. Motorola Solutions also updated its FY 2026 guidance to 16.870-16.990 EPS.

Motorola Solutions Trading Up 0.1%

Motorola Solutions stock traded up $0.37 during mid-day trading on Thursday, reaching $434.03. 1,119,087 shares of the company traded hands, compared to its average volume of 1,074,225. The company has a debt-to-equity ratio of 3.47, a current ratio of 1.04 and a quick ratio of 0.87. Motorola Solutions has a 52-week low of $359.36 and a 52-week high of $492.22. The firm has a market capitalization of $72.14 billion, a price-to-earnings ratio of 34.02, a P/E/G ratio of 3.06 and a beta of 0.93. The firm's 50 day moving average price is $451.32 and its 200 day moving average price is $417.06.

Motorola Solutions (NYSE:MSI - Get Free Report) last posted its earnings results on Thursday, May 7th. The communications equipment provider reported $3.37 EPS for the quarter, topping the consensus estimate of $3.25 by $0.12. The firm had revenue of $2.71 billion during the quarter, compared to analysts' expectations of $2.70 billion. Motorola Solutions had a net margin of 18.44% and a return on equity of 110.75%. Motorola Solutions has set its Q2 2026 guidance at 3.820-3.880 EPS and its FY 2026 guidance at 16.870-16.990 EPS. On average, analysts anticipate that Motorola Solutions will post 15.25 earnings per share for the current fiscal year.

Motorola Solutions Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Friday, March 20th were given a dividend of $1.21 per share. This represents a $4.84 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Friday, March 20th. Motorola Solutions's payout ratio is presently 37.93%.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on MSI. JPMorgan Chase & Co. increased their target price on Motorola Solutions from $515.00 to $520.00 and gave the stock an "overweight" rating in a research report on Thursday, February 12th. Wall Street Zen lowered Motorola Solutions from a "buy" rating to a "hold" rating in a research report on Sunday, April 26th. Truist Financial began coverage on shares of Motorola Solutions in a research note on Tuesday, March 31st. They issued a "buy" rating and a $540.00 price target for the company. Piper Sandler reissued an "overweight" rating and issued a $499.00 price target (up from $443.00) on shares of Motorola Solutions in a research report on Thursday, February 12th. Finally, Argus raised Motorola Solutions to a "strong-buy" rating in a research report on Friday, February 13th. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus target price of $502.50.

Insider Buying and Selling at Motorola Solutions

In other news, CEO Gregory Q. Brown sold 28,435 shares of the stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $477.95, for a total transaction of $13,590,508.25. Following the sale, the chief executive officer owned 90,721 shares in the company, valued at $43,360,101.95. This represents a 23.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Cynthia Yazdi sold 7,000 shares of the firm's stock in a transaction that occurred on Thursday, February 26th. The shares were sold at an average price of $471.01, for a total transaction of $3,297,070.00. Following the sale, the chief executive officer directly owned 9,529 shares of the company's stock, valued at $4,488,254.29. This trade represents a 42.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 129,069 shares of company stock worth $60,779,964. 1.28% of the stock is owned by corporate insiders.

Key Stories Impacting Motorola Solutions

Here are the key news stories impacting Motorola Solutions this week:

• Positive Sentiment: Q1 earnings beat and solid margins — $3.37 EPS vs. $3.25 expected; revenue $2.71B. Margin and ROE metrics were strong, supporting valuation. Motorola Solutions Reports First-Quarter 2026 Financial Results
• Positive Sentiment: Raised guidance — Q2 EPS 3.820–3.880 and FY EPS 16.870–16.990, both above consensus; FY revenue raised to ~$12.8B. Guidance beats are the main catalyst for the stock’s uptick. Guidance and Results Release
• Positive Sentiment: Management cites record first-quarter backlog and broad-based demand, which supports near-term revenue visibility and the raised outlook. CEO Comments and Backlog
• Positive Sentiment: Institutional interest — coverage and buy-side commentary (including a recent purchase by Aristotle Value Equity Strategy) and an average “Buy” brokerage rating support demand for the shares. Aristotle Value Purchase
• Neutral Sentiment: Analyst and media pieces highlight MSI as a long-term growth stock and discuss style/valuation; these can drive interest but don’t change fundamentals immediately. Zacks Growth Thesis
• Negative Sentiment: Valuation/rotation risk — some articles question whether the recent rally (driven by public-safety demand) means it’s time to reassess valuation; investors sensitive to multiples or rising rates may take profits. Valuation Reassessment Article

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Raymond James Financial Inc. grew its stake in shares of Motorola Solutions by 0.9% during the 3rd quarter. Raymond James Financial Inc. now owns 3,433,482 shares of the communications equipment provider's stock valued at $1,570,096,000 after purchasing an additional 31,744 shares during the period. Morgan Stanley lifted its stake in shares of Motorola Solutions by 2.0% in the 4th quarter. Morgan Stanley now owns 1,754,052 shares of the communications equipment provider's stock worth $672,364,000 after purchasing an additional 34,715 shares during the period. Amundi boosted its holdings in shares of Motorola Solutions by 19.6% in the fourth quarter. Amundi now owns 1,570,227 shares of the communications equipment provider's stock worth $601,899,000 after buying an additional 257,483 shares during the last quarter. Nuveen LLC grew its position in Motorola Solutions by 3.1% during the fourth quarter. Nuveen LLC now owns 1,448,079 shares of the communications equipment provider's stock valued at $555,078,000 after buying an additional 43,312 shares during the period. Finally, Ameriprise Financial Inc. grew its position in Motorola Solutions by 35.2% during the second quarter. Ameriprise Financial Inc. now owns 1,355,159 shares of the communications equipment provider's stock valued at $568,930,000 after buying an additional 353,113 shares during the period. Hedge funds and other institutional investors own 84.17% of the company's stock.

Motorola Solutions Company Profile

Motorola Solutions, Inc is a provider of mission-critical communications and analytics solutions for public safety and commercial customers. The company designs, manufactures and supports a range of communications equipment and software aimed at enabling first responders, government agencies and enterprises to coordinate and operate reliably in high-pressure environments. Its offerings emphasize secure, resilient connectivity and situational awareness for organizations that require dependable voice, data and video communications.

Product lines include land mobile radio (LMR) systems and handheld and vehicle-mounted radios used by police, fire and emergency medical services; broadband push-to-talk and LTE-based solutions; command-and-control center software for incident management and records; and video security and analytics systems.

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