Motorola Solutions Sees 2027 Revenue Near $14.25 Billion, Warns Memory Costs Could Double
CEO Greg Brown previewed next year's sales on the earnings call and said margins would still widen despite a chip-cost squeeze.
Motorola Solutions expects 2027 revenue "approximately in the zip code of $14.25 billion," CEO Greg Brown told analysts on the company's third-quarter earnings call Wednesday, adding that memory-chip costs "could very well double" next year. The maker of two-way radios, video cameras and emergency command-center software said it still expects wider operating margins, and it reported a record $16.6 billion backlog.
A 2027 number, with a caveat
Asked by an analyst how he was thinking about growth next year, Brown said the company would not guide specifics for 2027 and would update investors in February. He then gave a high-level view anyway: revenue near $14.25 billion, organic growth stronger than in 2026, and expanding operating margins.
The margin promise comes "in the face of increasing memory costs and supply chain headwinds," Brown said. Even so, he said the company expects operating leverage in 2027. He also said revenue timing across the quarters should look much like 2026.
The company's full-year 2026 outlook is now revenue of about $13.050 billion, up from $12.975 billion, and adjusted earnings of $17.94 to $17.99 a share, up from $17.62 to $17.72, CFO Jason Winkler said. Third-quarter adjusted earnings were $4.69 a share, up 16% from $4.06 a year earlier.
The memory-cost math
Pressed on the memory remark, Brown said Motorola bought about $50 million of direct memory components in 2025 and about $150 million this year. That base "could effectively double" in 2027, he said.
Winkler said the roughly $100 million increase this year lands mostly in the second half, as the company worked through inventory and prices rose. He also said an IEPA tariff item booked in the second quarter is about a $75 million benefit this year that will not recur next year.
Brown listed the response: accelerating inventory purchases, working with suppliers to secure supply, and possibly "surgical price increases," though he said the company wants to stay competitive. Winkler said Motorola is also qualifying additional suppliers and components and adjusting some of its own prices.
Radios, Silvus and Defend
Motorola's Products and Systems Integration segment grew 12% in the quarter and Software and Services grew 13%. Orders rose over 20%, and the backlog was up about $1 billion from the prior quarter.
Brown said he expects Silvus, the mesh-radio business for unmanned systems, to grow about 30% next year after a little over $900 million of sales this year. Defend, the counter-drone business Motorola bought for $1.3 billion net of cash acquired, is expected to bring in about $185 million of revenue in 2026 and grow 40% to 50% next year.
The Bell Canada land-mobile-radio network services acquisition, once expected to close in the fourth quarter, is now expected to close in the first or second quarter while customer and regulatory approvals continue, Winkler said.
Motorola said it will give formal 2027 guidance, with segment detail, in February.
Sources
- Motorola Solutions Non-GAAP EPS of $4.69 beats by $0.26, revenue of $3.38B beats by $100M (NYSE:MSI) | Seeking Alpha — seekingalpha.com
- Motorola reports record backlog of $16.6B for Q3; raises guidance | Seeking Alpha — seekingalpha.com
- Motorola: Q3 Earnings Snapshot – WTOP News — wtop.com
- Motorola: Q3 Earnings Snapshot — Associated Press
- Motorola Solutions Reports Third-Quarter 2026 Financial Results – Company Announcement - FT.com — Financial Times
