Motorola Solutions, Inc. · NYSE:MSI
Motorola Solutions — Q2 2026 Earnings Presentation
20 slides from Motorola Solutions's earnings presentation, Aug 5, 2026
Slide 1: Earnings Presentation Q2 2026 Results
Earnings Presentation Q2 2026 Results | August 5, 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: Q2 2026 Highlights
Highlights • Sales of $3.1B, up 13% Y/Y ● Products and Systems Integration up 15% Q2 2026 ● Software and Services up 10% ● Growth in all technologies ■ Mission Critical Networks (“MCN”) up 14% ■ Video Security and Access Control (“Video”) up 12% ■ Command Center up 14% • GAAP EPS of $3.332, up 10% Y
Slide 4: Financial Results
Financial Results Q2 25 Q2 26 Change Revenue $2,765 $3,133 13% Non-GAAP1 $818 $1,032 26% Operating Earnings2 Non-GAAP1 29.6% 32.9% 330 bps Operating Margin2 Non-GAAP1 $3.57 $4.41 24% Earnings Per Share2 ($M) excluding per share amounts 1 Non-GAAP measures exclude highlighted items, including share-b
Slide 5: Cash Flow
Cash Flow ($M) Q2 25 Q2 26 Change FY 25 FY 26E Change Operating Cash Flow $272 $469 $197 $2,837 $3,000 $163 Capital Expenditures ($48) ($55) ($7) ($265) ($275) ($10) Free Cash Flow* $224 $414 $190 $2,572 $2,725 $153 * Free Cash Flow is a non-GAAP financial measure and is calculated as Net cash provi
Slide 6: Products & SI
Products & SI • Revenue up 15% driven by growth in MCN and Video Q2 2026 • Non-GAAP1 operating margin2 up 470 bps compared to prior Revenue year driven by higher sales and improved operating leverage ($M) inclusive of higher direct material costs and IEEPA refunds • Notable wins and achievements: $1
Slide 7: Software & Services
Software & Services • Revenue up 10% driven by MCN, Command Center and Q2 2026 Video Revenue • Non-GAAP operating margin* up 150 bps driven by higher ($M) sales, inclusive of favorable mix • Notable wins and achievements: $1,112 $1,225 • $25 million mobile video order for the Florida Highway Patrol
Slide 8: Regional Revenue
Regional Revenue Q2 2026 ($M) Q2 25 Q2 26 Change • North America growth driven across all three technologies North America $2,027 $2,210 9% • International growth driven by double-digit growth across all three technologies International $738 $923 25% Total $2,765 $3,133 13% 8
Slide 9: Backlog Trend
Backlog Trend Q2 2026 Software & Services ($B) • Y/Y up $1.2B driven by strong demand in all three technologies $15.7 $15.6 * $14.1 • Q/Q up $28M primarily driven by strong demand in Command Center and Video, partially offset by revenue $10.7 $11.8 $11.8 recognition for the U.K. Home Office $3.4 $3.
Slide 10: Outlook
Outlook (Non-GAAP) Q3 2026 Q3 Details • Effective tax rate of approx. 23% Revenue Growth Approx. 8% • Fully diluted share count approx. 168M shares Non-GAAP EPS $4.39 - $4.44 Prior Full-Year 2026 Prior Full-Year Details • Effective tax rate of approx. 22.5% Revenue Approx. $12.8 billion Non-GAAP EPS
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 June 28, 2025 and July 4, 2026 to provide a more comprehensive view of the Company’s technologi
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 Q2 '26 $3,133 Non-GAAP GAAP gross margin 1,192 1,
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) GAAP EPS $ Q2 2025 3.04 $ Q2 2026 3.33 Measures Highlighted Items: Share-based compensation expenses $ 0.44 $ 0.61 Intangible assets amortization expense 0.23 0.56 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 July 4, 2026 Software and Products and Systems June 28
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 Six Months Ended July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025 Net cash provided by operating activities $ 4
Slide 18: Supplemental Non-GAAP Measures
Supplemental Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Non-GAAP ($ in millions) Q3 2025 Q4 2025 Q1 2026 Q2 2026 TTM GAAP Net earnings attributable to Motorola Solutions, Inc. $ 562 $ 649 $ 366 $ 557 $ 2,134 Interest Expense, Net 86 110 104 103 403 Measures Income Tax Expense
Slide 19: Supplemental Non-GAAP Measures
Supplemental Reconciliation Of GAAP Net Earnings To EBITDA and Adjusted EBITDA Non-GAAP Measures ($ in millions) FY 2015 GAAP Net Earnings (Loss) from Continuing Operations $ 640 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 $ 560 $ (155) $ 966 $ 868 $ 949 $1,245 $1
Slide 20: Solving for safer communities
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