Motorola Solutions said it expects 2026 sales and adjusted profit to come in above analysts' consensus, attributing the positive outlook to steady spending by government and public safety customers. The company flagged strength across its public safety technology offerings, including upgrades to radio systems and growing adoption of video security and command center software.
In its outlook, Motorola projected full-year sales of about $12.7 billion, a figure the company presented as higher than the average estimate of $12.61 billion compiled by LSEG. For adjusted earnings per share, management provided a range of $16.70 to $16.85 for 2026, ahead of the consensus estimate of $16.32.
The company said recurring revenue from its installed device base continues to be an important driver inside its software and services segment. That segment, which includes command center software, video analytics and cybersecurity services, benefits from ongoing subscriptions and service contracts tied to previously deployed hardware.
Motorola reported fourth-quarter revenue of $3.38 billion, topping estimates of $3.35 billion. Adjusted earnings per share for the quarter were $4.59, also above expectations. Following the release of results and the raised guidance, Motorola's shares rose more than 3% in extended trading.
Business focus and strategy
Under CEO Greg Brown, Motorola Solutions has directed its strategy toward building an integrated platform that combines hardware with software capabilities. Management says this approach is contributing to greater recurring revenue and tighter integration between devices and cloud-based or on-premise software solutions.
Market reaction and positioning
Investors responded positively to the results and the guidance numbers. The company emphasized that public safety and government agencies in North America are actively updating radio infrastructure and growing investments in video security and command center systems, trends that have underpinned recent revenue gains.
Motorola's emphasis on software and services tied to its installed base was highlighted as a stabilizing element for future revenue streams, due to the subscription-style nature of those offerings.