Motorola Solutions Q3 revenue beats estimates, outlook raised
Overview
US safety technology firm's Q3 revenue rose 12%, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company raised full-year revenue and earnings outlook, added $2 bln to share buyback
Outlook
Motorola Solutions raises full-year 2026 revenue outlook to $13.050 bln from $12.975 bln
Company lifts full-year 2026 non-GAAP EPS guidance to $17.94-$17.99 from $17.62-$17.72
Motorola Solutions expects Q4 2026 revenue growth of about 13% and non-GAAP EPS of $5.47-$5.52
Result Drivers
SEGMENT GROWTH - Revenue rose 12% in Products and Systems Integration, driven by Mission Critical Networks and Video Security and Access Control, and 13% in Software and Services, led by Mission Critical Networks, Command Center, and Video
STRONG DEMAND - Co cited exceptionally strong demand for safety and security solutions, resulting in record Q3 orders and record ending backlog
SUPPLY CHAIN COSTS - Higher supply chain and memory costs affected margins, though co said it is actively managing inventory and working with suppliers to mitigate volatility
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $3.38 bln | $3.26 bln (10 Analysts) |
Q3 Adjusted EPS | Beat | $4.69 | $4.42 (12 Analysts) |
Q3 EPS | $3.06 | ||
Q3 Net Income | $512 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Motorola Solutions Inc is $529.00, about 7.7% above its November 3 closing price of $491.00
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 24 three months ago
Reuters Recommended Reads
Nov 3 - Eaton Q3 sales, EPS beat estimates on strong demand
Nov 4 - Emerson Electric Q4 sales beat estimates on broad-based demand
Nov 3 - Aptiv Q3 revenue rises on regional sales growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)