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A maker of radios, cameras, and software that police, fire crews, and other emergency responders rely on to talk, see, and coordinate. The company traces its roots to Chicago's Galvin Manufacturing Corporation, founded in 1928, and the "Motorola" name was coined in 1930 by blending "motor" with "-ola" to mean sound in motion for its new car radios. It split from the consumer phone business in 2011, and during World War II its engineers built the first "walkie-talkie" so soldiers could keep in touch on foot.
Gross margin hit 53.6% as a $60M tariff refund lifted Q2, while operating earnings rose 17% to $809M.
A one-time tariff refund reshaped the quarter. rose 13.3% to $3.133B and widened 2.5 points to 53.6%, helped by a $60M adjustment, while rose 16.9% to $809M despite a near-doubling of to $103M. The underlying business grew, but the margin headline overstates the run rate.
Key takeaways
A $60M favorable adjustment lifted 2.5 points to 53.6%, the highest quarterly margin in the series; without it, the margin gain would have been narrower.
rose 13.3% to $3.133B, with Products and Systems Integration up 15% and Software and Services up 10%, including $243M from acquisitions.
rose 16.9% to $809M, but Other charges rose to $113M from $40M a year ago on higher and a $16M Silvus charge.
Section summaries
Management's Discussion and Analysis
Q2 2026 sales rose 13% to $3.1B, driven by acquisitions and broad growth across MCN, Video, and Command Center.
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increased 13% to $3.1B, with up 15% and up 10%, including $243M from acquisitions.
nearly doubled to $103M from $52M a year earlier, driven by the higher debt load following the $4.4B Silvus acquisition.
for the first half reached $920M, up from $783M a year ago, while the company returned $846M to shareholders through repurchases and dividends.
Cash and equivalents fell to $710M from $3.206B a year ago as the Silvus acquisition and shareholder returns drew down balances; stood at $8.417B.
What changed
Q1 2026 flagged a 3.5-point Products and Systems Integration drop from unfavorable mix and supply chain costs; in Q2, Products and Systems Integration margin recovered as the $60M and higher sales mix offset those pressures, lifting consolidated gross margin to 53.6%.
Q1 2026 of $451M trailed the prior-year $510M; Q2 2026 delivered $469M versus $273M a year ago, bringing first-half cash flow to $920M and putting the full-year $2.84B 2025 pace within reach.
The UK High Court extension challenge and the $748M status remain unresolved, with no new disclosure in this filing.
No collection of the $764.6M award was reported; a $40M Hytera litigation gain was recorded in Q1 2026, but Q2 2026 Other charges included no comparable Hytera benefit.
What to watch
Q3 2026 to see where it settles after the $60M drops out of the comparison.
Q3 2026 against the $798M Q3 2025 level as $8.4B of debt services and elevated persist.
Resolution of the UK High Court extension challenge and whether the $748M survives at charge control rates.
Any collection of the $764.6M award or recognition of further IEEPA tariff refunds.
expanded 250 to 53.6%, aided by a $60M favorable IEEPA tariff refund adjustment and higher sales mix, partially offset by higher direct material costs.
Operating earnings grew 17% to $809M, but Other charges surged to $113M from $40M due to higher intangible and a $16M Silvus .
for the first half rose to $920M from $783M, while the company returned $846M to shareholders via repurchases ($444M) and dividends ($402M).
The company cites elevated memory costs from AI-driven demand and ongoing global tariff volatility as headwinds, expecting levels to remain elevated.
, net nearly doubled to $103M in the quarter, driven by higher outstanding debt following the Silvus acquisition.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to our interest rate risk or foreign currency risk during the six months ended July 4, 2026. For a discussion of our exposure to interest rate risk and foreign currency risk, refer to our disclosures set forth in Part II, Item 7A “Quantitative…
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There have been no material changes to our interest rate risk or foreign currency risk during the six months ended July 4, 2026. For a discussion of our exposure to interest rate risk and foreign currency risk, refer to our disclosures set forth in Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” of the Form 10-K.
In addition to the matter referenced below, the Company is subject to legal proceedings and claims that have not been fully resolved and which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a…
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In addition to the matter referenced below, the Company is subject to legal proceedings and claims that have not been fully resolved and which have arisen in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company's condensed consolidated financial position, liquidity, or results of operations. However, an unfavorable resolution could have a material adverse effect on the Company's condensed consolidated financial position, liquidity, or results of operations in the periods in which the matters are ultimately resolved, or in the periods in which more information is obtained that changes management's opinion of the ultimate disposition.
Refer to the description of "Hytera Civil Litigation" in Note 12, “Commitments and Contingencies,” to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for information regarding our legal proceedings.