MSI US S&P 500Russell 1000 Earnings call · transcribed from the recording
Motorola Solutions (MSI) · Q3 2026 results and valuation
Share price: $535.22 · 2026-11-11
Motorola Solutions provides critical communications, video security, and command center technologies. Its products and services are used by public safety agencies and enterprises. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 4 Nov 2026 and 5 Aug 2026
Net income down 8.1% on the previous quarter, guidance raised. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−8.1%
Net income vs Q2 2026
Guidance raised
Net income 512.0M vs 557.0M
Revenue +7.8%
2 · How management spoke
Upbeat
More upbeat than 77% of company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were more upbeat than the script.
3 · What stood out
Figure
Billion, up approximately $1 billion from last quarter.
Valuation
Is Motorola Solutions undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 8.6% growth a year (3-year revenue growth), the model's fair value is $282.03 a share — the stock trades 90% above it. Today's price assumes 16.3% growth a year.
Current price
$535.22
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+16.3% for 10 yrs
Fair value / share
$282.03
Buy below
$211.52
Price vs fair value
Overvalued 90%
Price vs buy-below price
Overvalued 153%
Management expects
Sales +13% · from the Q3 2026 report: “Turning to our outlook, we expect Q4 sales growth of approximately 13%, with non-GAAP EPS between $5.47 and $5.52 per share.”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
LMR, Motorola Solutions expects to grow strong double digits in Q4.
Source quote
“LMR, we expect to grow strong double digits in Q4. I mean, we obviously have LMR that continues to grow robustly. Backlog is driven, handsomely as Jason referenced, driven by mission critical networks.”
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Guidance ↑
Finally, following its strong Q3 performance, Motorola Solutions is again raising full-year guidance for both revenue and EPS, as well as now increasing its full-year cash flow expectations.
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Guidance
Turning to its outlook, Motorola Solutions expects Q4 sales growth of approximately 13%, with non-GAAP EPS between $5.47 and $5.52 per share.
-
Dropped
Florida Highway Patrol and a $24 million order
Source quote
“A $25 million order with the Florida Highway Patrol and a $24 million order with the Kansas City Police Department... During the quarter, we also secured 2 large wins for our mobile video ecosystem. Looking at regional results.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Both segments grew double digits, with products and SI growing 12%, driven by growth in public safety LMR and continued robust demand for Silvis, while software and services grew 13%.”
“Additionally, we saw record Q3 orders ended the quarter with an all-time record backlog of $16.6 billion and continued to generate strong operating cash flow.”
“Our record backlog provides us with strong multi-year visibility, and our core foundation of innovative and impactful solutions position us exceptionally well to serve an addressable market that is now...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-10-03)
| Metric | Q3 2026period end 2026-10-03 | Q2 2026period end 2026-07-04 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.38B | 3.13B | +7.8% | 3.01B | +12.2% |
| Gross profit | 1.77B | 1.68B | +5.4% | 1.55B | +13.8% |
| Operating income | 777.0M | 809.0M | −4.0% | 770.0M | +0.9% |
| Net income | 512.0M | 557.0M | −8.1% | 562.0M | −8.9% |
| EPS | 3.06 | 3.33 | −8.1% | 3.33 | −8.1% |
| P/E today 41.4 | 36.0 | 33.3 | +2.7 | 36.6 | −0.6 |
Topics
Most discussed now
- Defend expands Motorola Solutions' radio frequency capabilities into drone detection and cyber takeover-based mitigation, and will be…
- Its year-to-date operating cash flow was almost $1.6 billion, up versus last year, inclusive of investments that Motorola Solutions has…
- Gap operating earnings were $777 million, or 23% of sales, down from 25.6% in the year-ago quarter, which included an...
- Its multi-year award for the state of Louisiana this quarter was yet another example of the momentum Motorola Solutions is seeing and...
- Motorola Solutions saw record Q3 orders ended the quarter with an all-time record backlog of $16.6 billion and continued to...
Faded since Q2 2026
- Dropped Salt Lake City
- Dropped Pending regulatory approvals, Motorola Solutions is also looking forward to the acquisition of D-Fend, an industry leader in counter-drone…
- Fading Motorola Solutions still expects gross margins to be comparable to last year as the now improved tariff outlook I...
- Fading Motorola Solutions has made some surgical price increases on high memory content items in Video, for example, like video servers.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Other events · SEC 8-K
Motorola Solutions, Inc. increased its share repurchase program by $2 billion, bringing the total authorized amount to $20 billion after repurchasing approximately $17.4 billion through July 4, 2026.
- Other events · SEC 8-K
Motorola Solutions, Inc. closed an underwritten public offering of $350,000,000 in 4.850% senior notes due 2029 and $600,000,000 in 5.650% senior notes due 2036 on August 17, 2026.
- Results of operations · SEC 8-K
Motorola Solutions, Inc. issued a press release on August 5, 2026, announcing financial results for the quarter ended July 4, 2026.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Motorola Solutions, Inc. issued a press release on May 7, 2026, announcing financial results for the quarter ended April 4, 2026.
- Director or officer change · SEC 8-K
Motorola Solutions announced the appointment of Peter A. Leav to its Board of Directors on March 12, 2026.
- Results of operations · SEC 8-K
Motorola Solutions, Inc. issued a press release on February 11, 2026, announcing financial results for the quarter and year ended December 31, 2025.