MSI Q2 profit rises; raises FY26 outlook

What happened: Motorola Solutions reported record Q2 results, with revenue up 13% to $2.4 billion, non-GAAP EPS rising 24% to $4.41, and operating margin expanding to 32.9%. The company raised its FY26 revenue outlook to $9.85-$10.05 billion and EPS to $17.20-$17.60, both up from previous guidance.

Market impact: The earnings beat and raised outlook pushed MSI shares up 7% in premarket trading. This positive performance may attract investors seeking exposure to the growing public safety and enterprise communications sectors.

What to watch next: MSI's Q3 earnings call on July 27 will provide further insight into the company's growth trajectory. Additionally, investors should monitor the impact of inflation and potential economic slowdown on enterprise spending, which could affect MSI's future guidance.