Motorola Solutions Q3 revenue beats estimates, outlook raised

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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