Motorola Solutions concluded an exceptional second quarter in 2026, showcasing impressive financial gains and strategic advancements. The company reported a substantial 13% increase in revenue, complemented by a 24% rise in non-GAAP EPS. This strong performance was primarily fueled by double-digit growth across both business segments and all three core technology areas. Notably, the success of APX NEXT devices and the next-generation D-Series infrastructure played a crucial role in driving these positive results. The company's robust order book, reaching a record $15.6 billion backlog, underscores a healthy demand environment and provides a strong foundation for continued expansion throughout the remainder of the year.
The second quarter saw Motorola Solutions' revenue climb to $3.1 billion, with non-GAAP EPS hitting $4.41. These figures exceeded expectations, largely due to accelerated conversions and heightened demand for mission-critical networks. The Products and Systems Integration (PSI) segment particularly excelled, reporting a 15% growth, attributed to stronger sales in public safety Land Mobile Radio (LMR) and the continued impressive performance of Silvus. Similarly, the Software and Services segment demonstrated solid growth, increasing by 10%, bolstered by command center software and LMR services. The company also saw significant operating margin expansion, improving by 140 basis points even when excluding the benefit from IEEPA refunds. This operational efficiency, coupled with strategic investments in areas like video security and AI-driven solutions, positions Motorola Solutions for sustained growth.
Key highlights from the quarter include the strong performance of Silvus, which contributed $230 million in revenue and saw its full-year expectations revised upwards to $850 million, driven by global defense modernization efforts. The company's APX NEXT devices, which integrate broadband capabilities and LEO satellite compatibility, are redefining mission-critical communications. The introduction of the D-Series infrastructure, representing the first major upgrade in over a decade, is also generating substantial customer interest, leading to significant contract wins in federal and state-level projects. Moreover, Motorola Solutions is advancing its presence in the video security market, securing major orders from law enforcement agencies like the Florida Highway Patrol and Kansas City Police Department for body-worn and in-car video solutions, leveraging integrated AI assist capabilities.
Looking ahead, Motorola Solutions has raised its full-year 2026 revenue guidance to approximately $12.975 billion and non-GAAP EPS to between $17.62 and $17.72. This revised outlook reflects confidence in the sustained demand for public safety LMR and the continued success of its acquisitions. The planned $1.5 billion acquisition of D-Fend Solutions, a leader in non-kinetic cyber takeover mitigation for counter-drone technology, is set to further strengthen Motorola's safety and security ecosystem. This strategic move, along with the expansion of Silvus's sales force and manufacturing capacity, underscores the company's commitment to innovation and market leadership. Public safety budgets are projected to grow faster than general government budgets in 2027, indicating a favorable long-term demand environment for Motorola Solutions' offerings.
The company's strong financial health and robust cash flow allow for flexible capital deployment, supporting both organic growth and targeted acquisitions. Motorola Solutions' emphasis on embedding AI into its core applications, such as VESTA emergency call handling solutions, has led to increased average selling prices and significant customer adoption. The D-Series infrastructure upgrade cycle is anticipated to be a long-term catalyst, with ongoing refreshes expected well into the 2030s. The strategic blend of innovative technology, market-leading products, and a strong acquisition strategy ensures Motorola Solutions remains at the forefront of the safety and security industry, continually meeting the evolving needs of its diverse customer base.
