MSI Earnings Predictions — 2026-08-05

Ticker Report or Guide KPI Prediction Answer Confidence
MSI Report Non-GAAP EPS BEAT pred ~$3.92 vs. cons $3.86 HIGH
MSI Report Revenue IN-LINE pred ~$3.01B vs. cons $2.98B MEDIUM
MSI Report Products & SI (P&SI) non-GAAP operating margin MISS pred ~24.8% vs. cons ~25.7% MEDIUM
MSI Guide FY26 Non-GAAP EPS (raise) BETTER guide ~$17.05 midpoint vs. cons $16.98 (FY26) MEDIUM
MSI Guide FY26 Revenue (raise) BETTER guide ~$12.85B vs. cons $12.82B (FY26) MEDIUM
MSI Guide FY26 operating margin expansion (reaffirm) UNCHANGED guide ~+100 bps vs. cons ~+90 bps (FY26) MEDIUM
MSI Guide Q3 Non-GAAP EPS guide UNKNOWN guide ~$4.02 vs. cons $4.08 (Q3-26) LOW
MSI Guide FY26 operating cash flow UNCHANGED guide ~$3.0B vs. cons $3.0B (FY26) MEDIUM
MSI Return Day-1 residual (stock − beta × S&P 500) -2.5% MEDIUM
MSI Return 5-day cumulative residual -3.0% (FADE) MSI rallied ~+10% in the two weeks into the print (from ~$404 on 7/22 to ~$443 on 8/4), setting a high bar. The Q1 template — a beat-and-raise still sold off ~11% on the memory/tariff margin and FCF overhang — is the base case: headline EPS/revenue beat and another FX/Silvus-led top-line raise, but soft P&SI margin and muted FCF reignite the peak-margin debate. Out-period math is unfavorable: the FY raise is largely FX + Silvus rather than core margin, so estimate revisions on EPS/FCF stay flat-to-down even after the beat, giving little fuel for follow-through. Expect an initial negative reaction that continues to bleed as sell-side trims margin assumptions and the pre-print run-up unwinds; STABILIZE only if P&SI margin holds sequentially and management sounds confident on memory-cost price offsets. LOW