Motorola Solutions, Inc.
For the period ended Jul 4, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 4, 2026 · Filed Aug 5, 2026
MSI$514.51-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-04-04; filed 2026-05-07.
0000068505-26-000021
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-07-04; filed 2026-08-05.
0000068505-26-000028
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 115 previous paragraphs and 177 current paragraphs.
51 unchanged; 42 reworded; 74 added; 21 removed; 1 previous and 10 current paragraphs rearranged.
Tables are not compared: 14 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (74)
Current report
Second Quarter Financial Results
Current report
•Net sales were $3.1 billion in the second quarter of 2026 compared to $2.8 billion in the second quarter of 2025.
Current report
•Operating earnings were $809 million in the second quarter of 2026 compared to $692 million in the second quarter of 2025.
Current report
•Operating cash flow increased $137 million to $920 million in the first half of 2026 compared to $783 million in the first half of 2025.
Current report
On February 20, 2026, a U.S. Supreme Court ruling invalidated tariffs imposed under the International Emergency Economic Powers Act ("IEEPA"). On April 20, 2026, the U.S. Customs and Border Protection launched a system to process IEEPA tariff refund claims. Following the implementation of this system, we have determined that the recovery of a portion of these refunds is now probable. Accordingly, during the quarter ended July 4, 2026, we recognized a favorable adjustment of $60 million recorded within Cost of sales in our Condensed Consolidated Statements of Operations.
Current report
Net sales increased $368 million, or 13%, in the second quarter of 2026 compared to the second quarter of 2025. The $255 million, or 15%, increase in net sales within the Products and Systems Integration segment was driven by an increase of 36% in the International region and an increase of 9% in the North America region. The $113 million, or 10%, increase in net sales within the Software and Services segment was driven by an increase of 9% in the North America region and an increase of 12% in the International region. Net sales includes:
Current report
•an increase in the Products and Systems Integration segment, inclusive of $210 million of revenue from acquisitions, driven by an increase in MCN and Video;
Current report
•inclusive of $35 million from favorable currency rates.
Current report
•a 25% increase in the International region, inclusive of revenue from acquisitions, driven by an increase in MCN, Video and Command Center; and
Current report
•a 9% increase in the North America region, inclusive of revenue from acquisitions, driven by an increase in MCN, Video and Command Center.
Current report
The 15% increase in the Products and Systems Integration segment was driven by the following:
Current report
•inclusive of $19 million from favorable currency rates.
Current report
The 10% increase in the Software and Services segment was driven by the following:
Current report
•$64 million, or 10%, growth in MCN, inclusive of revenue from acquisitions, driven by the North America and International regions;
Current report
•inclusive of $16 million from favorable currency rates.
Current report
•a 3.0% increase in gross margin as a percentage of net sales in the Products and Systems Integration segment, inclusive of acquisitions, primarily driven by higher sales, including favorable mix, and IEEPA tariff refunds partially offset by higher direct material costs; and
Current report
•a 1.5% increase in gross margin as a percentage of net sales in the Software and Services segment, inclusive of acquisitions, primarily driven by higher sales, including favorable mix.
Current report
SG&A expenses increased 10% in the second quarter of 2026 compared to the second quarter of 2025 primarily driven by:
Current report
•a $33 million, or 9%, increase in Products and Systems Integration SG&A expenses primarily due to higher expenses associated with acquired businesses and higher employee incentive costs, including share-based compensation, partially offset by lower expenses related to legal matters, including Hytera-related expenses; and
Current report
•a $13 million, or 14%, increase in Software and Services SG&A expenses primarily due to higher employee incentive costs, including share-based compensation, and higher expenses associated with acquired businesses.
Current report
SG&A expenses were 15.8% of net sales in the second quarter of 2026 compared to 16.3% of net sales in the second quarter of 2025.
Current report
R&D expenditures increased 13% in the second quarter of 2026 compared to the second quarter of 2025 primarily driven by:
Current report
•a $19 million, or 22%, increase in Software and Services R&D expenditures primarily due to investments in Command Center, higher employee incentive costs, including share-based compensation, and higher expenses associated with acquired businesses; and
Current report
•a $10 million, or 7%, increase in Products and Systems Integration R&D expenditures primarily due to higher expenses associated with acquired businesses and higher employee incentive costs, including share-based compensation.
Current report
R&D expenditures were 8.3% of net sales in the second quarter of 2026 compared to 8.4% of net sales in the second quarter of 2025.
Current report
•a $90 million increase in the Products and Systems Integration segment, primarily driven by higher sales, including favorable mix, IEEPA tariff refunds, improved operating leverage, and a gain on the Hytera litigation partially offset by higher employee incentive costs, including share-based compensation, an increase in intangible amortization expense, higher expenses associated with acquired businesses, higher direct material costs, and a contingent earnout charge related to the Silvus acquisition; and
Current report
•a $27 million increase in the Software and Services segment, primarily driven by higher sales, including favorable mix, partially offset by higher employee incentive costs, including share-based compensation, and higher expenses associated with acquired businesses.
Current report
•a $13 million gain on fair value adjustments to equity investments in the second quarter of 2026 compared to a $18 million gain on fair value adjustments to equity investments in the second quarter of 2025; and
Current report
•$25 million of net periodic pension and postretirement benefit in the second quarter of 2026 compared to $30 million of net periodic pension and postretirement benefit in the second quarter of 2025; partially offset by
Current report
The effective tax rate for the three months ended July 4, 2026 of 25% was higher than the effective tax rate for the three months ended June 28, 2025 of 24%, primarily due to a net increase in unrecognized tax benefits.
Current report
Results of Operations—Six months ended July 4, 2026 compared to Six months ended June 28, 2025
Current report
Net Sales
Current report
The Products and Systems Integration segment's net sales represented 59% of our net sales in the first half of 2026 and 60% in the first half of 2025. Net sales from the Software and Services segment represented 41% of our net sales in the first half of 2026 and 40% in the first half of 2025.
Current report
•an increase in the Products and Systems Integration segment, inclusive of $392 million of revenue from acquisitions, driven by an increase in MCN and Video; and
Current report
•inclusive of $94 million from favorable currency rates.
Current report
Regional results include:
Current report
•a 26% increase in the International region, inclusive of revenue from acquisitions, driven by an increase in MCN, Video and Command Center; and
Current report
•a 5% increase in the North America region, inclusive of revenue from acquisitions, driven by an increase in Video, Command Center and MCN.
Current report
Products and Systems Integration
Current report
The 8% increase in the Products and Systems Integration segment was driven by the following:
Showing the first 40 of 74 passages. Open the source sections for the rest.
Removed paragraphs (21)
Previous report
First Quarter Financial Results
Previous report
•Net sales were $2.7 billion in the first quarter of 2026 compared to $2.5 billion in the first quarter of 2025.
Previous report
•Operating earnings were $525 million in the first quarter of 2026 compared to $582 million in the first quarter of 2025.
Previous report
•Operating cash flow decreased $59 million to $451 million in the first quarter of 2026 compared to $510 million in the first quarter of 2025.
Previous report
On February 20, 2026, a U.S. Supreme Court ruling invalidated tariffs imposed under IEEPA; however, the ruling did not address potential refunds. Following the ruling, the Court of International Trade (“CIT”) ordered U.S. Customs and Border Protection (“CBP”) to facilitate refunds for all affected importers. On April 20, 2026, CBP launched Phase 1 of the Consolidated Administration and Processing of Entries (“CAPE”) system to facilitate these refunds. As of April 4, 2026, we had not recognized an asset related to any potential refund given the potential uncertainty in receiving refunds. We plan to continue to evaluate new information as it becomes available, and recognize the refund when recovery is probable.
Previous report
•an increase in the Products and Systems Integration segment, inclusive of $181 million of revenue from acquisitions, driven by an increase in Video partially offset by a decrease in MCN; and
Previous report
•inclusive of $60 million from favorable currency rates.
Previous report
•a 27% increase in the International region, inclusive of revenue from acquisitions, driven by an increase in MCN, Video and Command Center; and
Previous report
•the North America region was flat, inclusive of revenue from acquisitions, driven by an increase in Video and Command Center, partially offset by a decrease in MCN.
Previous report
The 1% increase in the Products and Systems Integration segment was driven by the following:
Previous report
•inclusive of $30 million from favorable currency rates.
Previous report
The 18% increase in the Software and Services segment was driven by the following:
Previous report
•inclusive of $30 million from favorable currency rates.
Previous report
•a 3.5% decrease in gross margin as a percentage of net sales in the Products and Systems Integration segment, inclusive of acquisitions, primarily driven by unfavorable mix and supply chain costs; partially offset by
Previous report
•a 2.6% increase in gross margin as a percentage of net sales in the Software and Services segment, inclusive of acquisitions, primarily driven by higher sales, favorable mix, and improved operating leverage.
Previous report
SG&A expenses increased 1% in the first quarter of 2026 compared to the first quarter of 2025 primarily driven by a $3 million, or 3%, increase in Software and Services SG&A expenses related to higher expenses associated with acquired businesses. SG&A expenses were 16.2% of net sales in the first quarter of 2026 compared to 17.2% of net sales in the first quarter of 2025.
Previous report
R&D expenditures increased $19 million, or 8%, in the first quarter of 2026 compared to the first quarter of 2025, primarily driven by higher expenditures associated with acquired businesses in both the Products and Systems Integration and Software and Services segments. Products and Systems Integration R&D expenditures increased $10 million, or 7% and Software and Services R&D expenditures increased $9 million, or 10%. R&D expenditures were 9.3% of net sales in the first quarter of 2026 and 9.2% of net sales in the first quarter of 2025.
Previous report
Other Charges
Previous report
•$84 million decrease in cash used for the issuance of common stock, net of tax, in the first quarter of 2026 compared to the first quarter of 2025; partially offset by
Previous report
•$19 million increase in the payment of dividends in the first quarter of 2026 compared to the first quarter of 2025; and
Previous report
•$200 million repayment of short-term debt driven by the repayment of our 364-day term loan in the first quarter of 2026 which did not occur in the first quarter of 2025.
Reworded paragraphs (42)
Previous wording
This commentary should be read in conjunction with the condensed consolidated financial statements and related notes thereto of Motorola Solutions, Inc. (“Motorola Solutions,” the “Company,” “we,” “our,” or “us”) for the three months ended April 4, 2026 and March 29, 2025, as well as our consolidated financial statements and related notes thereto and management’s discussion and analysis of financial condition and results of operations in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "Form 10-K").
Current wording
This commentary should be read in conjunction with the condensed consolidated financial statements and related notes thereto of Motorola Solutions, Inc. (“Motorola Solutions,” the “Company,” “we,” “our,” or “us”) for the three and six months ended July 4, 2026 and June 28, 2025, as well as our consolidated financial statements and related notes thereto and management’s discussion and analysis of financial condition and results of operations in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "Form 10-K").
Previous wording
Statements in this Quarterly Report on Form 10-Q for the quarter ended April 4, 2026 (this “Form 10-Q”) which are not historical in nature are forward-looking statements within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “aims,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this Form 10-Q. Some of these risks and uncertainties include, but are not limited to, those discussed in Part I, Item 1A “Risk Factors” of the Form 10-K, and those described elsewhere in our other SEC filings. Forward-looking statements include, but are not limited to, statements under the following headings: (1) “Management's Discussion and Analysis of Financial Condition and Results of Operations,” about: (a) the impact of the U.S. Supreme Court ruling that invalidated tariffs imposed under the International Emergency Economic Powers Act on our business, and our actions in response thereto; (b) the impact of changes in the global trade environment, the dynamic supply chain environment and the memory market on our business, and our actions in response thereto; (c) the impact of acquisitions on our business; (d) our plans to assess the impact of changes to tax law on our business; (e) the return of capital to shareholders through dividends and/or repurchasing shares; (f) future payments, charges, and use of accruals associated with our reorganization of business programs and employee separation costs; (g) our ability to repatriate funds; (h) the liquidity of our investments; (i) our ability to access the capital markets; (j) our use of proceeds from the issuance of notes under our unsecured commercial paper program; (k) adequacy of internal resources to generate adequate amounts of cash to meet expected working capital, capital expenditure and cash requirements; and (l) future cash flows generated from operations, and future uses of cash, investments and debt facilities; and (2) “Quantitative and Qualitative Disclosures about Market Risk,” about: (a) the impact of foreign currency risk; and (b) future hedging activity and expectations of the Company.
Current wording
Statements in this Quarterly Report on Form 10-Q for the quarter ended July 4, 2026 (this “Form 10-Q”) which are not historical in nature are forward-looking statements within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes,” “expects,” “intends,” “aims,” “estimates” and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this Form 10-Q. Some of these risks and uncertainties include, but are not limited to, those discussed in Part I, Item 1A “Risk Factors” of the Form 10-K, and those described elsewhere in our other SEC filings. Forward-looking statements include, but are not limited to, statements under the following headings: (1) “Management's Discussion and Analysis of Financial Condition and Results of Operations,” about: (a) the impact of changes in the global trade environment, the dynamic supply chain environment and the memory market on our business, and our actions in response thereto (including with respect to inventory levels); (b) the impact of acquisitions on our business; (c) our plans to assess the impact of changes to tax law on our business; (d) the return of capital to shareholders through dividends and/or repurchasing shares; (e) future payments, charges, and use of accruals associated with our reorganization of business programs and employee separation costs; (f) our ability to repatriate funds; (g) the liquidity of our investments; (h) our ability to access the capital markets; (i) our use of proceeds from the issuance of notes under our unsecured commercial paper program; (j) adequacy of internal resources to generate adequate amounts of cash to meet expected working capital, capital expenditure and cash requirements; and (k) future cash flows generated from operations, and future uses of cash, investments and debt facilities; and (2) “Quantitative and Qualitative Disclosures about Market Risk,” about: (a) the impact of foreign currency risk; and (b) future hedging activity and expectations of the Company.
Previous wording
•Net earnings attributable to Motorola Solutions, Inc. was $366 million, or $2.18 per diluted common share, in the first quarter of 2026, compared to $430 million, or $2.53 per diluted common share, in the first quarter of 2025.
Current wording
•Net earnings attributable to Motorola Solutions, Inc. was $557 million, or $3.33 per diluted common share, in the second quarter of 2026, compared to $513 million, or $3.04 per diluted common share, in the second quarter of 2025.
Previous wording
•We repurchased $118 million of common stock and paid $201 million in dividends in the first quarter of 2026.
Current wording
•We repurchased $444 million of common stock and paid $402 million in dividends in the first half of 2026.
Previous wording
Since February 2025, the U.S. has initiated a series of trade actions which imposed new tariffs and increased existing tariffs on goods imported from various countries, including tariffs levied under the International Emergency Economic Powers Act (“IEEPA”), contributing to a global trade landscape subject to evolving tariffs, import/export regulations, including restrictions around rare earth minerals, trade barriers and trade disputes.
Current wording
The global trade landscape continues to shift rapidly, including evolving tariffs and import/export regulations, such as restrictions around rare earth minerals, trade barriers and trade disputes.
Previous wording
In addition, we are experiencing higher costs for memory in our products which is a result of substantial demand in the market driven by AI. As a result, we continue to observe elevated volatility and uncertainty around the global supply chain. We engage with global suppliers across a diverse network of locations around the world. We continue to work with our global supply base to mitigate our exposure to the risks from global reciprocal (and sectoral) tariffs, rising memory costs, and import/export regulations that have developed, and which may continue to develop, to ensure supply continues at levels necessary to meet our current customer demand. As a result of the dynamic supply chain environment, we have experienced increased costs on materials and components, for which we continue to develop mitigation actions going forward.
Current wording
In addition, we are experiencing higher costs for memory in our products which is a result of substantial demand in the market driven by AI. As a result, we continue to observe elevated volatility and uncertainty around the global supply chain. We engage with global suppliers across a diverse network of locations around the world. We are actively managing our inventory and continue to work with our global supply base to mitigate our exposure to elevated volatility and uncertainty from these rising memory costs, as well as global tariffs and import/export regulations that have developed, and which may continue to develop, to ensure supply continues at levels necessary to meet our current customer demand. We expect inventory levels to remain elevated as we mitigate this dynamic supply chain environment. The current environment has led to increased costs on materials and components, for which we continue to develop mitigation actions going forward.
Previous wording
The results of operations for the first quarter of 2026 are not necessarily indicative of the operating results to be expected for the full year. Historically, we have experienced higher revenues in the fourth quarter as compared to the rest of the quarters of our fiscal year as a result of the purchasing patterns of our customers.
Current wording
The results of operations for the second quarter of 2026 are not necessarily indicative of the operating results to be expected for the full year. Historically, we have experienced higher revenues in the fourth quarter as compared to the rest of the quarters of our fiscal year as a result of the purchasing patterns of our customers.
Previous wording
The Products and Systems Integration segment’s net sales represented 57% of our net sales in the first quarter of 2026 and 61% in the first quarter of 2025. The Software and Services segment’s net sales represented 43% of our net sales in the first quarter of 2026 and 39% in the first quarter of 2025.
Current wording
The Products and Systems Integration segment’s net sales represented 61% of our net sales in the second quarter of 2026 and 60% in the second quarter of 2025. The Software and Services segment’s net sales represented 39% of our net sales in the second quarter of 2026 and 40% in the second quarter of 2025.
Previous wording
•$94 million, or 16%, growth in MCN, inclusive of revenue from acquisitions, driven by the North America and International regions;
Current wording
•$211 million, or 16%, growth in MCN, inclusive of revenue from acquisitions, driven by the International and North America regions;
Previous wording
•$40 million, or 17%, growth in Video, driven by the North America and International regions;
Current wording
•$44 million, or 15%, growth in Video, driven by the International and North America regions; and
Previous wording
•$50 million, or 27%, growth in Command Center, inclusive of revenue from acquisitions, driven by the North America and International regions;
Current wording
•$32 million, or 14%, growth in Command Center, inclusive of revenue from acquisitions, driven by the North America and International regions;
Previous wording
•$29 million, or 14%, growth in Video, inclusive of revenue from acquisitions, driven by the North America and International regions; and
Current wording
•$17 million, or 8%, growth in Video, inclusive of revenue from acquisitions, driven by the North America and International regions; and
Previous wording
Gross margin was 50.2% of net sales in the first quarter of 2026 compared to 51.4% in the first quarter of 2025. The primary drivers of this decrease in gross margin as a percentage of net sales were:
Current wording
Gross margin was 53.6% of net sales in the second quarter of 2026 compared to 51.1% in the second quarter of 2025. The primary drivers of this increase in gross margin as a percentage of net sales were:
Previous wording
Other charges increased $97 million in the first quarter of 2026 compared to the first quarter of 2025. The increase was primarily driven by:
Current wording
Other charges increased $73 million in the second quarter of 2026 compared to the second quarter of 2025. The increase was primarily driven by:
Previous wording
•$90 million of intangible amortization expense in the first quarter of 2026 compared to $37 million of intangible amortization expense in the first quarter of 2025; partially offset by
Current wording
•$95 million of intangible amortization expense in the second quarter of 2026 compared to $39 million of intangible amortization expense in the second quarter of 2025; and
Previous wording
•a $75 million contingent earnout charge related to the Silvus acquisition in the first quarter of 2026 that did not occur in the first quarter of 2025; and
Current wording
•a $16 million contingent earnout charge related to the Silvus acquisition in the second quarter of 2026 that did not occur in the second quarter of 2025; partially offset by
Previous wording
•a $40 million gain on Hytera litigation for amounts recovered through legal proceedings due to the theft of our trade secrets recognized in the first quarter of 2026 compared to $10 million of gains on Hytera litigation in the first quarter of 2025.
Current wording
•a $20 million gain on Hytera litigation for amounts recovered through legal proceedings due to the theft of our trade secrets recognized in the second quarter of 2026 compared to $10 million of gains on Hytera litigation in the second quarter of 2025.
Previous wording
Operating earnings decreased $57 million, or 10%, in the first quarter of 2026 compared to the first quarter of 2025. The decrease in Operating earnings was due to:
Current wording
Operating earnings increased $117 million, or 17%, in the second quarter of 2026 compared to the second quarter of 2025. The increase in Operating earnings was due to:
Previous wording
The $53 million increase in Interest expense, net in the first quarter of 2026 compared to the first quarter of 2025 was primarily driven by higher outstanding debt.
Current wording
The $48 million increase in Interest expense, net in the second quarter of 2026 compared to the second quarter of 2025 was primarily driven by higher outstanding debt.
Previous wording
The $4 million increase in Other, net in the first quarter of 2026 compared to the first quarter of 2025 was primarily driven by:
Current wording
The $7 million decrease in Other, net in the second quarter of 2026 compared to the second quarter of 2025 was primarily driven by:
Previous wording
•a $27 million loss on derivatives in the first quarter of 2026 compared to a $13 million gain on derivatives in the first quarter of 2025.
Current wording
•a $17 million loss on derivatives in the second quarter of 2026 compared to a $34 million gain on derivatives in the second quarter of 2025;
Previous wording
•a $25 million gain on foreign currency in the first quarter of 2026 compared to a $20 million loss on foreign currency in the first quarter of 2025; partially offset by
Current wording
•a $11 million gain on foreign currency in the second quarter of 2026 compared to a $42 million loss on foreign currency in the second quarter of 2025.
Previous wording
Net sales increased $186 million, or 7%, in the first quarter of 2026 compared to the first quarter of 2025. The $173 million, or 18%, increase in net sales within the Software and Services segment was driven by an increase of 18% in both the North America and International regions. The $13 million, or 1%, increase in net sales within the Products and Systems Integration segment was driven by an increase of 35% in the International region, partially offset by a decrease of 10% in the North America region. Net sales includes:
Current wording
Net sales increased $555 million, or 10%, in the first half of 2026 compared to the first half of 2025. The $286 million, or 14%, increase in net sales within the Software and Services segment was driven by an increase of 13% in the North America region and an increase of 15% in the International region. The $269 million, or 8%, increase in net sales within the Products and Systems Integration segment was driven by an increase of 35% in the International region, while the North America region remained flat. Net sales includes:
Previous wording
•an increase in the Software and Services segment, inclusive of $38 million of revenue from acquisitions, driven by an increase in MCN, Command Center and Video;
Current wording
•an increase in the Software and Services segment, inclusive of $71 million of revenue from acquisitions, driven by an increase in MCN, Command Center and Video;
Previous wording
•$27 million, or 2%, decrease in MCN, inclusive of revenue from acquisitions, driven by the North America region, partially offset by the International region; and
Current wording
•$185 million, or 7% growth in MCN, inclusive of revenue from acquisitions, driven by the International region partially offset by the North America region;
Previous wording
•a $82 million increase in the Software and Services segment, primarily driven by higher sales, including favorable mix, and improved operating leverage, partially offset by higher expenses associated with acquired businesses.
Current wording
•a $109 million increase in the Software and Services segment, primarily driven by higher sales, including favorable mix, and improved operating leverage, partially offset by higher employee incentive costs, including share-based compensation, and higher expenses associated with acquired businesses; partially offset by
Previous wording
•a $139 million decrease in the Products and Systems Integration segment, primarily driven by the Silvus contingent earnout charge, unfavorable mix, an increase in intangible amortization expense, higher expenses associated with acquired businesses, and higher supply chain costs, partially offset by a gain on the Hytera litigation, improved operating leverage, and lower expenses related to legal matters, including Hytera-related expenses; partially offset by
Current wording
•a $49 million decrease in the Products and Systems Integration segment, primarily driven by an increase in intangible amortization expense, a contingent earnout charge related to the Silvus acquisition, higher expenses associated with acquired businesses, and higher direct material costs, partially offset by higher sales, IEEPA tariff refunds, improved operating leverage, a gain on the Hytera litigation, and lower expenses related to legal matters, including Hytera-related expenses.
Previous wording
The effective tax rate for the three months ended April 4, 2026 of 17% was lower than the effective tax rate for the three months ended March 29, 2025 of 21%, primarily due to higher excess tax benefits of share-based compensation and an increased deduction for foreign-derived deduction-eligible income (formerly known as foreign-derived intangible income).
Current wording
The effective tax rate for the six months ended July 4, 2026 of 22% was lower than the effective tax rate for the six months ended June 28, 2025 of 23%, primarily due to higher excess tax benefits of share-based compensation and an increased deduction for foreign-derived deduction-eligible income.
Previous wording
During the first quarter of 2025, we recorded net reorganization of business charges of $17 million, including $12 million of charges recorded within Other charges and $5 million of charges in Cost of sales in our Condensed Consolidated Statements of Operations. Included in the $17 million were charges of $19 million related to employee separation costs, partially offset by $2 million of reversals for employee separation accruals that are no longer needed.
Current wording
During the second quarter of 2026, we recorded net reorganization of business charges of $15 million, including $10 million of charges recorded within Other charges and $5 million of charges in Cost of sales in our Condensed Consolidated Statements of Operations related to employee separation costs. Included in the $15 million were charges of $18 million related to employee separation costs, partially offset by $3 million of reversals for employee separation accruals no longer needed.
Previous wording
Cash payments for employee severance in connection with the reorganization of business plans were $12 million in the first quarter of 2026 and $14 million in the first quarter of 2025. The reorganization of business accrual at April 4, 2026 was $27 million related to employee separation costs that are expected to be paid primarily within one year.
Current wording
Cash payments for employee severance in connection with the reorganization of business plans were $24 million in the first half of 2026 and $33 million in the first half of 2025. The reorganization of business accrual at July 4, 2026 was $30 million related to employee separation costs that are expected to be paid primarily within one year.
Previous wording
At April 4, 2026, $570 million of the $886 million cash and cash equivalents balance was held in the U.S. and $316 million was held in other countries.
Current wording
At July 4, 2026, $430 million of the $710 million cash and cash equivalents balance was held in the U.S. and $280 million was held in other countries.
Previous wording
The decrease in cash flows provided by operating activities from the first quarter of 2025 to the first quarter of 2026 was driven primarily by increased investments in inventory and higher interest and tax payments in the first quarter of 2026 compared to the first quarter of 2025, partially offset by higher earnings, net of non-cash charges.
Current wording
The increase in cash flows provided by operating activities from the first half of 2025 to the first half of 2026 was driven primarily by higher earnings, net of non-cash charges, partially offset by increased investments in inventory and higher interest payments in the first half of 2026 compared to the first half of 2025.
Previous wording
The decrease in cash flows used for investing activities in the first quarter of 2026 compared to the first quarter of 2025 was primarily due to a $326 million decrease in cash used for acquisitions and investments.
Current wording
The decrease in cash flows used for investing activities in the first half of 2026 compared to the first half of 2025 was primarily due to a $240 million decrease in cash used for acquisitions and investments.
Previous wording
The decrease in cash flows used for financing activities in the first quarter of 2026 compared to the cash flows used for financing activities in the first quarter of 2025 was primarily driven by (see also further discussion in the "Debt," "Share Repurchase Program" and "Dividends" sections below in this Part I, Item 2 of this Form 10-Q):
Current wording
The increase in cash flows used for financing activities in the first half of 2026 compared to the cash flows provided by financing activities in the first half of 2025 was primarily driven by (see also further discussion in the "Debt," "Share Repurchase Program" and "Dividends" sections below in this Part I, Item 2 of this Form 10-Q):
Previous wording
•$207 million decrease in share repurchases in the first quarter of 2026 compared to the first quarter of 2025; and
Current wording
•$94 million decrease in share repurchases in the first half of 2026 compared to the first half of 2025; and
Previous wording
The following table summarizes the proceeds received from sales of long-term customer financing receivables for the three months ended April 4, 2026 and March 29, 2025:
Current wording
The following table summarizes the proceeds received from sales of long-term customer financing receivables for the three and six months ended July 4, 2026 and June 28, 2025:
Previous wording
We had outstanding debt of $9.0 billion at April 4, 2026, of which $550 million was current. We had outstanding debt of $9.2 billion at December 31, 2025, of which $749 million was current.
Current wording
We had outstanding debt of $9.0 billion at July 4, 2026, of which $615 million was current. We had outstanding debt of $9.2 billion at December 31, 2025, of which $749 million was current.
Previous wording
On August 6, 2025, we borrowed $1.5 billion of senior delayed draw term loan facilities comprised of a $750 million 364-day facility and a $750 million three-year facility ("term loan due 2028") to fund a portion of the acquisition of Silvus. On January 30, 2026, we repaid $200 million of the $750 million 364-day term loan, reducing the outstanding principal balance to $550 million. We must comply with certain customary covenants including a maximum leverage ratio, as defined in the 364-Day Term Loan Credit Agreement and Three-Year Term Loan Credit Agreement, each entered into on July 21, 2025. We were in compliance with our financial covenants as of April 4, 2026. During the three months ended April 4, 2026, the weighted average interest rate of the 364-day facility and the term loan due 2028 was 4.77% and 4.99%, respectively.
Current wording
On August 6, 2025, we borrowed $1.5 billion of senior delayed draw term loan facilities comprised of a $750 million 364-day facility and a $750 million three-year facility ("term loan due 2028") to fund a portion of the acquisition of Silvus. On January 30, 2026, we repaid $200 million of the $750 million 364-day facility, reducing the outstanding principal balance to $550 million. We must comply with certain customary covenants including a maximum leverage ratio, as defined in the 364-Day Term Loan Credit Agreement and Three-Year Term Loan Credit Agreement, each entered into on July 21, 2025. We were in compliance with our financial covenants as of July 4, 2026. During the three months ended July 4, 2026, the weighted average interest rate of the 364-day facility and the term loan due 2028 was 4.73% and 4.85%, respectively. On June 26, 2026, we exercised our option under the 364-Day Term Loan Credit Agreement to extend the maturity of $250 million of the outstanding principal amount by one year.
Previous wording
We have an unsecured commercial paper program, backed by the 2025 Motorola Solutions Credit Agreement (as defined below), under which we may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $2.2 billion outstanding at any one time. Proceeds from the issuances of the notes are expected to be used for general corporate purposes. The notes are issued at a zero-coupon rate and are issued at a discount which reflects the interest component. At maturity, the notes are paid back in full including the interest component. The notes are not redeemable prior to maturity. As of April 4, 2026, we have no outstanding debt under the commercial paper program.
Current wording
We have an unsecured commercial paper program, backed by the 2025 Motorola Solutions Credit Agreement (as defined below), under which we may issue unsecured commercial paper notes up to a maximum aggregate principal amount of $2.2 billion outstanding at any one time. Proceeds from the issuances of the notes are expected to be used for general corporate purposes. The notes are issued at a zero-coupon rate and are issued at a discount which reflects the interest component. At maturity, the notes are paid back in full including the interest component. The notes are not redeemable prior to maturity. As of July 4, 2026, we had $65 million outstanding debt under the commercial paper program, which had a weighted-average interest rate of 4.03% during the three months ended July 4, 2026.
Previous wording
During the three months ended April 4, 2026, we repurchased approximately 0.3 million shares at an average price of $440.94 per share for an aggregate amount of $118 million, excluding transaction costs and excise tax. As of April 4, 2026, we had used approximately $17.0 billion of the share repurchase authority to repurchase shares, leaving $1.0 billion of authority available for future repurchases.
Current wording
During the three and six months ended July 4, 2026, we repurchased approximately 0.8 million and 1.1 million shares at an average price of $413.53 and $420.50 per share for an aggregate amount of $326 million and $444 million, respectively, excluding transaction costs and excise tax. As of July 4, 2026, we had used approximately $17.4 billion of the share repurchase authority to repurchase shares, leaving $0.6 billion of authority available for future repurchases.
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Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
•an increase in the Software and Services segment, inclusive of $33 million of revenue from acquisitions, driven by an increase in MCN, Command Center and Video; and
Current report — wording carried from elsewhere
•$84 million, or 16% growth in Video, driven by the North America and International regions; and
Current report — wording carried from elsewhere
•$83 million, or 20% growth in Command Center, inclusive of revenue from acquisitions, driven by the North America and International regions;
Current report — wording carried from elsewhere
•$45 million, or 10% growth in Video, inclusive of revenue from acquisitions, driven by the North America and International regions; and
Current report — wording carried from elsewhere
Selling, General and Administrative ("SG&A") Expenses
Current report — wording carried from elsewhere
Research and Development ("R&D") Expenditures
Current report — wording carried from elsewhere
•$185 million of intangible amortization expense in the first half of 2026 compared to $76 million of intangible amortization expense in the first half of 2025; and
Current report — wording carried from elsewhere
•a $60 million gain on Hytera litigation for amounts recovered through legal proceedings due to the theft of our trade secrets recognized in the first half of 2026 compared to $20 million of gains on Hytera litigation in the first half of 2025.
Current report — wording carried from elsewhere
•a $35 million gain on foreign currency in the first half of 2026 compared to a $62 million loss on foreign currency in the first half of 2025.
Current report — wording carried from elsewhere
On July 4, 2025, the "One Big Beautiful Bill Act" was enacted into law, introducing a broad range of changes to the U.S. corporate income tax framework. The legislation includes business provisions that impact our tax position, including tax cut extensions and modifications to the international tax framework and corporate income tax deductions. Certain provisions of this legislation were effective for the 2025 fiscal year, whereas other provisions became effective starting in 2026. For the six months ended July 4, 2026, the impact of the enacted legislation on our tax position was not material. We plan to continue to assess the ongoing impact of this legislation as further guidance is made available.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
During the first quarter of 2026, we recorded net reorganization of business charges of $15 million, consisting of $10 million of charges in Other charges and $5 million of charges in Cost of sales in our Condensed Consolidated Statements of Operations related to employee separation costs.