Overview

• Public safety technology provider's Q1 sales rose 7%, slightly beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company raised full-year revenue and earnings outlook after record Q1 orders and backlog

Outlook

• Motorola Solutions raises 2026 revenue outlook to $12.8 bln from $12.7 bln

• Company lifts 2026 non-GAAP EPS guidance to $16.87-$16.99 from $16.70-$16.85

• Motorola Solutions expects Q2 revenue growth of about 8.5% and non-GAAP EPS of $3.82-$3.88

Result Drivers

• SOFTWARE AND SERVICES GROWTH - 18% sales growth in Software and Services segment, driven by Mission Critical Networks, Command Center and Video

• INTERNATIONAL DEMAND AND ACQUISITIONS - Overall sales rose 7% primarily due to international growth, $219 mln in revenue from acquisitions, and $60 mln in foreign currency tailwinds

• RECORD BACKLOG - Record Q1 ending backlog of $15.7 bln, up 11%, driven by record Q1 orders and broad-based demand

Company press release: ID:nBw8bypGQa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Slight Beat*	$2.71 bln	$2.70 bln (9 Analysts)
Q1 Adjusted EPS	Beat	$3.37	$3.24 (11 Analysts)
Q1 EPS		$2.18
Q1 Net Income		$366 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "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 $500.00, about 15.3% above its May 6 closing price of $433.66

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 25 three months ago

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