CHICAGO, May 8, 2026, 13:04 CDT
Motorola Solutions bumped up its 2026 revenue and adjusted profit outlooks following a first-quarter sales beat, but shares tumbled $47.63 to $385.57 on Friday, down roughly 11%. Investors were looking for more than a slight guidance increase from the public-safety tech company.
This report lands at a time when spending from police, fire departments, emergency dispatchers, and commercial security firms continues to shore up Motorola, even as other tech outlays fluctuate. The company’s business covers mission-critical radios, video security equipment, and command-center software. According to Reuters, land mobile radio systems, video surveillance, and access control are fueling recent growth.
Motorola lifted its 2026 revenue outlook to around $12.8 billion—nudging it up from the previous $12.7 billion call. The company now sees non-GAAP earnings per share landing between $16.87 and $16.99, tightening the range from an earlier $16.70 to $16.85 projection. Non-GAAP earnings, which strip out certain items management considers outside core operations, remain the metric in focus.
Motorola Solutions posted first-quarter sales of $2.7 billion, up 7%. Software and services jumped 18%, but products and systems integration edged higher by just 1%. The company also logged a record Q1 backlog: $15.7 billion, an 11% increase from last year.
Chief Executive Greg Brown called it “an outstanding start to the year” in the release. Brown pointed to “robust, broad-based demand” as the key driver behind the backlog. Motorola Solutions
Chief Financial Officer Jason Winkler told the earnings call that Motorola is lifting its top-line forecast by $100 million, attributing the move to strength from Silvus and the main public-safety segment. “Demand continues to be quite strong across the portfolio,” Brown noted. The Motley Fool
Not a huge beat. StockStory, quoted by TradingView, pointed to $2.71 billion in revenue—just 0.6% above the Street. Adjusted EPS landed at $3.37, which topped consensus by 3.8%. Full-year revenue guidance? About where analysts had it.
Motorola is continuing to build out its emergency response offerings, snapping up software and AI companies to bolster the portfolio. The company recently wrapped up deals for Exacom and Hyper, together costing $90 million after accounting for acquired cash. In another move, it struck an agreement to acquire Bell Canada’s land mobile radio networks services business in a CAD $675 million deal—about $500 million. Land mobile radio, or LMR, covers the two-way radio systems relied on by first responders and field crews.
Competitive signals stayed in focus. On Wednesday, Axon Enterprise—best known for TASERs, body cams, and digital law enforcement tools—lifted its full-year revenue outlook, pointing to robust demand for software and security gear.
The quarter wasn’t without trouble spots. Motorola’s filing revealed the company hasn’t booked an asset for potential tariff refunds. AI-driven memory prices and ongoing supply-chain swings continued to push up raw materials and component expenses. Gross margin narrowed to 50.2%, down from 51.4% last year, with operating earnings dropping to $525 million, compared with $582 million.
Motorola’s demand picture keeps improving, with orders and software revenues trending up, but cost pressures remain. Friday’s drop showed investors weren’t satisfied—they seemed to want either a clearer margin narrative or a more substantial boost before bidding shares higher again.
