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MSI · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
A strong quarter with revenue up 13% and operating earnings up 17% on broad-based demand plus IEEPA tariff refunds and a Hytera litigation gain, but net income growth was diluted to 9% by rising intangible amortization, a Silvus earnout charge and higher interest expense from acquisition debt.
Net Earnings
$557M
up 8.6% y/y
Revenue
$3,133M
up 13.3% y/y
Operating Earnings
$809M
up 16.9% y/y
Gross Margin
$1,678M
up 18.8% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Mission Critical Networks | $2,280 · +14% |
| Video | $584 · +12% |
| Command Center | $269 · +14% |
| Products & Systems Integration | $1,908 · +15% |
| Software & Services | $1,225 · +10% |
| Revenue | $3,133 · +13.3% |
| Cost of Sales | $1,455 · +7.6% |
| Gross Margin | $1,678 · +18.8% · 53.6% margin |
| SG&A | $496 · +10% |
| R&D | $260 · +13% |
| Other Charges* | $113 · +183% · incl. $95M amortization* |
| Operating Earnings | $809 · +16.9% · 25.8% margin |
| Interest & Other, net | -$67 · vs -$12 |
| Pretax Earnings | $742 · +9.1% |
| Income Tax | $184 · +12% |
| Net Earnings | $557 · +8.6% · $3.33 diluted EPS |
Verdict: a strong quarter with revenue up 13% and operating earnings up 17% on broad-based demand plus IEEPA tariff refunds and a Hytera litigation gain, but net income growth was diluted to 9% by rising intangible amortization, a Silvus earnout charge and higher interest expense from acquisition debt.
OCF $920M (H1, +18% y/y) · buybacks $326M in Q2 ($444M H1) · dividends $201M paid in Q2 ($1.21/sh) · backlog $9.5B ($4.1B due next 12 months)
Source and notation
* marks non-cash / ≈ estimated. Source: Motorola Solutions press release / 10-Q (SEC EDGAR).
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Chart: “MSI Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/msi/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/msi/q2-2026"><img src="https://whoreportstoday.com/t/msi/q2-2026/sankey.png" alt="MSI Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/msi/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/msi/q2-2026">MSI Q2 2026 earnings chart (Who Reports Today)</a>
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- Other charges of $113M include $95M non-cash intangible amortization (mostly from the $4.4B Silvus deal) and a $16M non-cash contingent-earnout fair-value charge, partly offset by a $20M Hytera litigation gain.
- Gross margin expanded to 53.6% from 51.1%, helped by a $60M favorable IEEPA tariff-refund adjustment booked in Cost of sales, partially offset by higher memory/component costs.
- Interest expense, net nearly doubled to $103M from $55M due to debt raised to fund the Silvus acquisition (term loans, senior notes issued June 2025).
- Products and Systems Integration (61% of sales) grew 15% led by MCN and Video and international strength (+36%); Software and Services (39%) grew 10% with better operating leverage, its margin at 29.1% vs 25.8% for products.
- Effective tax rate rose to 25% from 24% on higher unrecognized tax benefits, holding back net income growth to 9% despite 17% operating earnings growth.
- Acquisitions (Silvus, Blue Eye, Exacom, Hyper) added roughly $243M of net sales in the quarter; pending deals (D-Fend $1.5B, Bell Mobility LMR business ~C$675M) signal continued inorganic expansion.
What distorts the picture in this report and what to watch beyond the headlines.
MSI — Motorola Solutions designs and sells mission-critical communication systems and services for public safety and enterprise customers.
The company is headquartered in Chicago, Illinois, and operates globally.
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