$MSI

Motorola Solutions, Inc.

CIK:0000068505|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025	Jul. 04, 2026	Jun. 28, 2025
Net sales	$ 3,133	$ 2,765	$ 5,848	$ 5,293
Costs of sales	1,455	1,352	2,808	2,580
Gross margin	1,678	1,413	3,040	2,713
Selling, general and administrative expenses	496	450	935	886
Research and development expenditures	260	231	512	464
Other charges	113	40	259	89
Operating earnings	809	692	1,334	1,274
Other income (expense):
Interest expense, net	(103)	(55)	(208)	(106)
Other, net	36	43	56	59
Total other expense	(67)	(12)	(152)	(47)
Net earnings before income taxes	742	680	1,182	1,227
Income tax expense	184	165	256	280
Net earnings	558	515	926	947
Less: Earnings attributable to non-controlling interests	1	2	3	4
Net earnings attributable to Motorola Solutions, Inc.	$ 557	$ 513	$ 923	$ 943
Earnings per common share:
Basic (in USD per share)	$ 3.36	$ 3.08	$ 5.57	$ 5.65
Diluted (in USD per share)	$ 3.33	$ 3.04	$ 5.51	$ 5.57
Weighted average common shares outstanding:
Basic (in shares)	165.8	166.8	165.8	166.8
Diluted (in shares)	167.2	168.8	167.6	169.4
Products
Net sales	$ 1,818	$ 1,533	$ 3,300	$ 2,980
Costs of sales	702	646	1,332	1,220
Services
Net sales	1,315	1,232	2,548	2,313
Costs of sales	$ 753	$ 706	$ 1,476	$ 1,360

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025
Operating
Net earnings	$ 926	$ 947
Adjustments to reconcile Net earnings to Net cash provided by operating activities:
Depreciation and amortization	291	167
Contingent earnout adjustment	91	0
Non-cash other income	0	(5)
Share-based compensation expenses	204	140
Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments:
Accounts receivable	36	129
Inventories	(355)	(84)
Other current assets and contract assets	9	(122)
Accounts payable, accrued liabilities and contract liabilities	(208)	(455)
Other assets and liabilities	(84)	49
Deferred income taxes	10	17
Net cash provided by operating activities	920	783
Investing
Acquisitions and investments, net	(224)	(464)
Proceeds from sales of investments and businesses, net	6	12
Capital expenditures	(117)	(85)
Proceeds from sales of property, plant and equipment	1	0
Net cash used for investing activities	(334)	(537)
Financing
Net proceeds from issuance of debt	0	1,983
Net proceeds from short-term borrowings	65	0
Repayments of short-term debt	(200)	(252)
Revolving credit facility renewal fees	0	(5)
Issuances of common stock, net of tax	(9)	(37)
Purchases of common stock	(449)	(543)
Payments of dividends	(402)	(364)
Payments of dividends to non-controlling interests	(4)	(4)
Net cash provided by (used for) financing activities	(999)	778
Effect of exchange rate changes on total cash and cash equivalents	(42)	80
Net increase (decrease) in total cash and cash equivalents	(455)	1,104
Cash and cash equivalents, beginning of period	1,165	2,102
Cash and cash equivalents, end of period	710	3,206
Cash paid during the period for:
Interest paid	229	135
Income and withholding taxes, net of refunds	$ 276	$ 315

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jul. 04, 2026	Dec. 31, 2025
ASSETS
Cash and cash equivalents	$ 710	$ 1,165
Accounts receivable, net	2,160	2,200
Contract assets	1,455	1,574
Inventories, net	1,333	983
Other current assets	474	378
Total current assets	6,132	6,300
Property, plant and equipment, net	1,167	1,165
Operating lease assets	571	581
Investments	300	187
Deferred income taxes	733	761
Goodwill	6,883	6,800
Intangible assets, net	2,951	3,104
Other assets	505	491
Total assets	19,242	19,389
LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-term borrowings	615	749
Accounts payable	957	1,134
Contract liabilities	2,341	2,265
Accrued liabilities	1,666	1,930
Total current liabilities	5,579	6,078
Long-term debt	8,417	8,413
Operating lease liabilities	442	471
Other liabilities	2,116	2,000
Stockholders’ Equity
Preferred stock, $100 par value: 0.5 shares authorized; none issued and outstanding	0	0
Common stock, $0.01 par value:	2	2
Additional paid-in capital	2,468	2,279
Retained earnings	2,627	2,549
Accumulated other comprehensive loss	(2,425)	(2,420)
Total Motorola Solutions, Inc. stockholders’ equity	2,672	2,410
Non-controlling interests	16	17
Total stockholders’ equity	2,688	2,427
Total liabilities and stockholders’ equity	$ 19,242	$ 19,389