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Research Alert: Motorola Sees Strength In Software & Services But Pressure In Products

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

MSI reported Q1 revenue of $2.714B (+7%), driven by exceptional 18% growth in Software and Services to $1.155B, while Products segment grew modestly 1% to $1.559B. Non-GAAP EPS reached $3.37 (+6%), though GAAP EPS declined 14% to $2.18 due to increased intangible amortization and $75M contingent earnout adjustment. The record Q1 ending backlog of $15.7B (+11%) provides strong revenue visibility, with Software and Services backlog growing 13% driven by demand across all three technologies. Management raised full-year 2026 guidance, with revenue now expected at approximately $12.8B and non-GAAP EPS of $16.87-$16.99. We expect continued momentum from strategic acquisitions including the pending Bell Canada LMR services deal for ~$500M and recent product launches like SVX body-worn assistant. We will monitor progress on cost mitigation strategies as the company navigates elevated memory costs and supply chain pressures, while Silvus is expected to generate $675M in revenue, $75M above previous expectations.

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