MSI · 8-K · 20260805PR000027

Operating Margin Drivers

Motorola Solutions, Inc. · 2026-08-05 · Importance 47 · Surprise 22 · From source text

Q2 GAAP operating earnings increased 17% to $809 million, and GAAP operating margin improved to 25.8% from 25.0%. Non-GAAP operating earnings increased 26% to $1.032 billion, with non-GAAP operating margin expanding 330 basis points to 32.9%. Products and Systems Integration GAAP margin rose to 23.7% from 22.0%, while Software and Services GAAP margin declined to 29.1% from 29.6%. Higher sales and operating leverage drove the margin improvement despite higher direct material costs, and the $60 million IEEPA refund benefit added 190 basis points.

Key facts

• Non-GAAP operating earnings for Q2 2026 were $1,032 million, up 26% versus Q2 2025. source
• GAAP operating earnings for Q2 2026 were $809 million, up 17% versus Q2 2025. source
• Non-GAAP operating margin for Q2 2026 was 32.9% of sales, up 330 basis points from 29.6% a year ago. source
• GAAP operating margin for Q2 2026 was 25.8% of sales, up from 25.0% in the year-ago quarter. source

Impact estimates