Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q1 2026 Earnings Presentation
20 slides from Motorola Solutions's earnings presentation, May 7, 2026
Slide 1: Earnings Presentation Q1 2026 Results
Earnings Presentation Q1 2026 Results | May 7, 2026
Slide 2: Safe Harbor
Safe Harbor A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These forward-looking statements are based on the current expectations of Motorola Solutions, and we can give no assurance that any f
Slide 3: Highlights Q1 2026
Highlights • Sales of $2.7B, up 7% Y/Y ● Software and Services up 18% Q1 2026 ● Products and Systems Integration up 1% ● Growth in all technologies ■ Mission Critical Networks (“MCN”) up 4% ■ Video Security and Access Control (“Video”) up 16% ■ Command Center up 27% • GAAP EPS of $2.18; Non-GAAP EPS
Slide 4: Financial Results
Financial Results Q1 25 Q1 26 Change Revenue $2,528 $2,714 7% Non-GAAP $716 $781 9% Operating Earnings* Non-GAAP 28.3% 28.8% 50 bps Operating Margin* Non-GAAP $3.18 $3.37 6% Earnings Per Share* ($M) excluding per share amounts * Non-GAAP measures exclude highlighted items, including share-based comp
Slide 5: Cash Flow
Cash Flow ($M) Q1 25 Q1 26 Change FY 25 FY 26E Change Operating Cash Flow $510 $451 ($59) $2,837 $3,000 $163 Capital Expenditures ($37) ($62) ($25) ($265) ($275) ($10) Free Cash Flow* $473 $389 ($84) $2,572 $2,725 $153 * Free Cash Flow is a non-GAAP financial measure and is calculated as Net cash pr
Slide 6: Products & SI
Products & SI Q1 2026 • Revenue up 1% driven by growth in Video • Non-GAAP operating margin* down 330 bps compared to prior Revenue ($M) year driven by unfavorable mix and higher supply chain costs, partially offset by improved operating leverage • Notable wins and achievements: $1,546 $1,559 • $148
Slide 7: Software & Services
Software & Services • Revenue up 18% driven by strong demand in all three Q1 2026 technologies Revenue • Non-GAAP operating margin* up 550 bps driven by higher ($M) sales, inclusive of favorable mix, and improved operating leverage $1,155 • Notable wins and achievements: $982 • $41 million five-year
Slide 8: Regional Revenue
Regional Revenue Q1 2026 ($M) Q1 25 Q1 26 Change • North America flat with growth in Video and Command Center North America $1,852 $1,857 Flat • International growth driven by MCN, Video and Command Center International $676 $857 27% Total $2,528 $2,714 7% 8
Slide 9: Backlog Trend
Backlog Trend Q1 2026 Software & Services • Y/Y up $1.3B driven by strong demand in all three ($B) technologies • Q/Q down $105M primarily driven by revenue recognition for $14.1 $15.7 $15.7 the U.K. Home Office, partially offset by strong demand in Command Center and Video $10.5 $11.9 $11.8 • Favor
Slide 10: Outlook
Outlook (Non-GAAP) Q2 2026 Q2 Details • Effective tax rate of approx. 23% Revenue Growth Approx. 8.5% • Fully diluted share count approx. 168M shares Non-GAAP EPS $3.82 - $3.88 Prior Full-Year 2026 Revenue Approx. $12.7 billion Non-GAAP EPS $16.70 - $16.85 Full-Year 2026 Full-Year Details • Effectiv
Slide 11: Q&A Participants
Q&A Participants Greg Brown Chairman and CEO Jack Molloy Executive Vice President and COO Jason Winkler Executive Vice President and CFO Mahesh Saptharishi Executive Vice President and CTO Brian Piotrowski Vice President, Investor Relations 11
Slide 12: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to the results presented in accordance with accounting principles generally accepted in the U.S. ("GAAP") included in this presentation, Motorola Solutions, Inc. (the “Company”) also has included non-GAAP measurements of results, including free cash flow, non-GAA
Slide 13: Supplemental Disaggregation of Revenue
Motorola Solutions, Inc. Disaggregation of Revenues Supplemental Below is an updated presentation of the disaggregation of revenues for the Company’s major products and services for the three months ended March 29, 2025 and April 4, 2026 to provide a more comprehensive view of the Company’s technolo
Slide 14: Supplemental Non-GAAP Measures
Motorola Solutions, Inc. and Subsidiaries Supplemental Net sales Non-GAAP Trends (in millions, except for per share amounts) Q1 '24 $2,389 Q2 '24 $2,628 Q3 '24 $2,790 Q4 '24 $3,010 Q1 '25 $2,528 Q2 '25 $2,765 Q3 '25 $3,009 Q4 '25 $3,380 Q1 '26 $2,714 Non-GAAP GAAP gross margin 1,192 1,339 1,433 1,54
Slide 15: Supplemental Non-GAAP Measures
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliation of EPS to Non-GAAP EPS Non-GAAP (per diluted common share) Q1 2025 Q1 2026 Measures GAAP EPS Highlighted Items: $ 2.53 $ 2.18 Share-based compensation expenses $ 0.39 $ 0.60 Intangible assets amortization expense 0.22 0.53 Conting
Slide 16: Supplemental Non-GAAP Measures
Supplemental Motorola Solutions, Inc. and Subsidiaries Reconciliations of Operating Earnings to Non-GAAP Operating Earnings and Operating Margin to Non-GAAP Operating Margin Non-GAAP (in millions) Three Months Ended Measures Products and Systems April 4, 2026 Software and Products and Systems March
Slide 17: Supplemental Non-GAAP Measures
Supplemental Non-GAAP Motorola Solutions, Inc. and Subsidiaries Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Measures (in millions) Three Months Ended April 4, 2026 March 29, 2025 Net cash provided by operating activities $ 451 $ 510 Capital expenditures (62) (37) Fr
Slide 18: Supplemental Non-GAAP Measures
Supplemental Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Non-GAAP ($ in millions) Q2 2025 Q3 2025 Q4 2025 Q1 2026 TTM GAAP Net earnings attributable to Motorola Solutions, Inc. $ 513 $ 562 $ 649 $ 366 $ 2,090 Interest Expense, Net 55 86 110 104 355 Measures Income Tax Expense D
Slide 19: Supplemental Non-GAAP Measures
Supplemental Non-GAAP Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Measures ($ in millions) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 GAAP Net Earnings (Loss) from Continuing Operations $ 640 $ 560 $ (155) $ 966 $ 868 $ 949 $1,245 $1
Slide 20: Solving for safer
Solving for safer communities schools hospitals businesses nations everywhere MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective o