Motorola Solutions Q3 2026: $3.38B Revenue, 12.2% Growth

By Amara Osei

Motorola Solutions grew revenue 12.2% year on year to $3.38 billion in Q3 2026, beating Wall Street's consensus estimate of $3.28 billion by 3.1%. The quarter's soft spot sat elsewhere: guidance of $3.82 billion for Q4 revenue came in 1.3% below the $3.87 billion analysts expected. The market frowned on the miss. Shares slipped 1.2% to $491.00 immediately after the release.

The Chicago-based public safety technology company, listed on the NYSE under MSI and valued at $81.26 billion, also delivered on profit. Adjusted EPS of $4.69 topped the $4.43 consensus by 5.8% and rose from $4.06 a year earlier.

What did management say?

"Q3 was another outstanding quarter, with double-digit revenue growth across both segments and all three technologies," said Greg Brown, chairman and CEO of Motorola Solutions.

Brown pointed to demand strength beyond a single quarter. "We continue to see exceptionally strong demand across our safety and security solutions, driving record Q3 orders and an all-time record ending backlog," he said. "As a result, we're raising our revenue and earnings outlook again and increasing our cash flow expectations for the full year."

Management lifted full-year adjusted EPS guidance to $17.97 at the midpoint, a 1.7% increase, and guided Q4 revenue to a 13% year-on-year gain.

How do the quarter's internals look?

Two margin figures moved the wrong way.

• Operating margin: 23%, down from 25.6% in the same quarter last year
• Free cash flow margin: 17.4%, down from 24.4% a year ago
• Adjusted operating margin: 32.5%, up 2 percentage points year on year

The split matters. Adjusted operating margin, which strips out non-recurring costs, showed the core business running more efficiently. The unadjusted figures suggest one-off items weighed on reported profitability.

Is the long-term picture consistent?

Revenue of $12.6 billion over the past 12 months makes Motorola Solutions a large player in business services, with economies of scale that smaller rivals cannot match.

• Five-year revenue CAGR: 9.2%
• Two-year annualized revenue growth: 8.8%
• Software and services segment growth, two-year average: 17.8% year on year, outpacing total revenue
• Five-year average adjusted operating margin: 29%, up 6.3 percentage points over the period

EPS compounded at 13.3% annually over five years, ahead of the 9.2% revenue growth. A share count reduction of 3.8% amplified per-share gains alongside improving profitability. Two-year annual EPS growth of 11.6% lagged the five-year trend.

What comes next?

Sell-side analysts expect revenue to grow 8.9% over the next 12 months, according to S&P, roughly in line with the two-year rate. For a company of this scale, sustained high-single-digit growth signals durable demand.

Wall Street also expects full-year EPS to climb 10.4%, from $17.06 to $18.83, according to S&P.

The takeaway in plain words: a record quarter with record backlog, a raised full-year outlook, but a Q4 revenue forecast that fell just short of what the market wanted.