Motorola Solutions delivered double-digit revenue growth in the latest quarter, driven by continued strength across both public safety and enterprise segments. Management pointed to robust demand for its Silvus tactical communications platform and a series of large contract wins in land mobile radio (LMR) and video solutions as key contributors. CEO Greg Brown highlighted the company’s ability to expand operating margins, even in the face of supply chain headwinds and rising component costs. The company also reported a record backlog, reflecting ongoing demand for its safety and security ecosystem.
Is now the time to buy MSI? Find out in our full research report (it’s free for active Edge members).
Motorola Solutions (MSI) Q3 2026 highlights:
- Revenue $3.38 billion vs S&P analysts’ estimates of $3.28 billion (12.2% year-on-year growth, 3.1% beat)
- Adjusted EPS $4.69 vs S&P analysts’ estimates of $4.43 (5.8% beat)
- Revenue guidance $3.82 billion at the midpoint for Q4 2026, below analyst estimates of $3.87 billion
- Adjusted EPS guidance Management raised its full-year adjusted EPS guidance to $17.97 at the midpoint, a 1.7% increase
- Operating margin 23%, down from 25.6% in the same quarter last year
- Market capitalization $85.48 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Motorola Solutions’s Q3 earnings call
- Tim Long (Barclays) asked about Silvus demand and capacity expansion. COO Jack Molloy explained that unmanned systems and international markets remain strong, with expanded production capacity and no concerns about meeting future demand.
- Keith Housum (Northcoast Research) pressed for details on memory cost headwinds and margin impacts. CEO Greg Brown detailed the expected doubling of memory costs into next year and outlined ongoing mitigation efforts including supplier negotiations and selective pricing.
- Marc Vitenzon (JPMorgan) questioned the sustainability of backlog growth and drone market opportunities. CEO Greg Brown emphasized focus on integrating D-Fend and continued expansion in defense and public safety-centric unmanned systems.
- Tomer Zilberman (Bank of America) inquired about LMR refresh cycles and Silvus growth rates. COO Jack Molloy described the early stages of a multi-year LMR refresh and projected around 30% growth for Silvus next year.
- Irvin Liu (Evercore ISI) asked about margin expansion drivers despite component headwinds. CFO Jason Winkler attributed improvements to favorable sales mix, price adjustments, and efficiencies in supply chain management.
Catalysts in upcoming quarters
In the coming quarters, the StockStory team will watch (1) the pace of D-Fend integration and adoption of counter-drone solutions within core product lines, (2) further expansion of Silvus capacity and international penetration, and (3) the margin trajectory as memory cost inflation plays out. We are also monitoring the uptake of AI-powered workflow tools and the sustainability of record backlog conversions into revenue.
Motorola Solutions currently trades at $517.30, up from $497.07 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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