MSI · Earnings call · 2026Q2T · Full report
Memory Cost Pressure
Motorola Solutions, Inc. · 2026-08-05 · Importance 65 · Surprise 82 · From source text
Direct memory spending is expected to reach approximately $150 million in 2026, up from $50 million in 2025, creating a material supply-chain and cost challenge. Management said availability remains good because Motorola is working closely with key vendors, carrying higher inventory and securing continuity of supply. The company uses a simpler form of RAM in its LMR portfolio, allowing substitution away from the latest high-speed DRAM and increasing sourcing flexibility. Higher memory costs are particularly relevant to Video products, where Motorola has implemented targeted price increases on high-memory-content items such as video servers.
Key facts
- They anticipate direct memory spend of approximately $150 million this year, up from $50 million last year.
- Motorola made a conscious decision to carry more inventory to get ahead of memory and aligned that with conversion, which allowed them to execute, and they expect that approach to continue in the back half.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | probable | -1.6% | They anticipate direct memory spend of approximately $150 million this year, up from $50 million last year. |
| assets | positive | committed | — | Motorola made a conscious decision to carry more inventory to get ahead of memory and aligned that with conversion, which allowed them to… |
| margin | negative | committed | — | Motorola made a conscious decision to carry more inventory to get ahead of memory and aligned that with conversion, which allowed them to… |