Motorola Solutions (MSI) AI Stock Analysis

• Market Cap: $77.71B
• Dividend Yield: 1.18%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.59
• Revenue Growth: 6.17%
• EPS Growth: 35.41%
• Country: US
• Employees: 21,000
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 4.59
• Shares Outstanding: 165,658,900
• 10 Day Avg. Volume: 1,038,336
• 30 Day Avg. Volume: 1,147,716
• PEG Ratio: 0.80
• Price to Book (P/B): 26.43
• Price to Sales (P/S): 5.45
• P/FCF Ratio: 24.77
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 7.42
• Enterprise Value/Gross Profit: 14.80
• Enterprise Value/Ebitda: 24.60
• 1Y Price Target: $503.33
• Price Target Upside: 7.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 16.78
• Revenue Forecast (FY): $12.69B

• Rating: 75 Outperform
• Price Target: $520.00 ▲(10.85% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

MSI scores well on durable profitability, strong free cash flow, and an upbeat earnings outlook with record backlog and margin expansion guidance. The score is held back primarily by elevated leverage and a premium valuation, while technicals remain supportive with steady (not overheated) momentum.

Positive Factors

Cash generation

Consistent, large free cash flow (F F O ~2.6B in 2025) and ~90.7% FCF conversion provide durable funding for R&D, dividends, buybacks and disciplined M&A. Strong cash generation underpins capital allocation and cushions operating volatility over the next 2–6 months.

High margins & profitability

Sustained >30% non‑GAAP operating margins and improving net margin reflect scale, software mix and services economics. High structural margins increase earnings resilience, fund reinvestment and support returns even if product cycles moderate over the medium term.

Backlog & recurring revenues

A record $15.7B backlog and double‑digit S&S growth signal multi-year revenue visibility and recurring cash streams. The mix toward software, services and long-term contracts raises switching costs, boosts customer stickiness and supports durable revenue and margin stability.

Negative Factors

Elevated leverage

Material debt load (~$10.1B) and high debt-to-equity reduce financial flexibility. Operating cash flow covers less than half of total debt (~0.47x), making the company more sensitive to rate increases or cyclical slowdowns and constraining optionality for large capital moves.

Acquisition-driven financing costs

Acquisition financing raised interest expense and near-term OpEx. Persistent higher financing costs and integration spend can weigh on free cash flow and elevate break-even, limiting the pace of share buybacks or dividend growth if synergies take longer to realize.

Input costs & tariff risks

Tariff headwinds (~$60M in H1 2026) and rising memory/component costs create structural margin pressure. Even with vendor management and selective pricing, sustained input inflation or new trade measures could erode operating margin expansion potential over the medium term.

Motorola Solutions Business Overview & Revenue Model

Company Description

Motorola Solutions, Inc. provides mission critical communications and analytics in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Software and Services. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices and infrastructure, as well as the implementation, and integration of systems, devices, software, and applications for government, public safety, and commercial customers who operate private communications networks and video security solutions, as well as manage a mobile workforce. Its land mobile radio communications and video security and access control devices include two-way portable and vehicle-mounted radios, fixed and mobile video cameras, and accessories; radio network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Software and Services segment provides repair, technical support, and hardware maintenance services. This segment also offers monitoring, software updates, and cybersecurity services; and public safety and enterprise command center software, unified communications applications, and video software solutions through on-premise and as a service. It serves government, public safety, and commercial customers. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Motorola Solutions makes money primarily by selling mission-critical communication hardware and systems, expanding those deployments with software, and supporting customers through long-term services and recurring software revenue. 1) Product and systems sales (upfront revenue): A major portion of revenue comes from selling land mobile radio (LMR) infrastructure and subscriber devices used by public safety agencies and other mission-critical users. This includes base stations, repeaters, network cores, consoles, and handheld/mobile radios, as well as related accessories. The company also generates revenue from video security hardware such as body-worn cameras, in-vehicle video systems, and fixed cameras and sensors. 2) Software and subscriptions (recurring revenue): MSI sells command center and security software that helps agencies and enterprises manage dispatch, records, evidence, and video workflows, often delivered as term licenses and/or SaaS subscriptions. In video, customers may pay recurring fees for cloud services such as digital evidence management and associated software capabilities (e.g., search, analytics, workflow tools), creating an ongoing revenue stream beyond initial device purchases. 3) Services, maintenance, and support (recurring and multi-year contracts): A meaningful share of revenue is generated from multi-year support agreements, managed services, and maintenance tied to radio networks and devices (e.g., repair, software updates, technical support, and network operations services). These contracts can be long-lived because customers rely on high availability for emergency communications and because switching costs can be high. 4) Integrated solutions and cross-selling: The company often sells bundled solutions that combine radios, network infrastructure, dispatch/command center software, and video security products. This integrated approach can increase total contract value and drive follow-on revenue (e.g., adding more devices, expanding software modules, renewing subscriptions, and extending service contracts). 5) Customer base and procurement dynamics: A significant portion of MSI’s revenue is tied to government/public safety customers (local, state, and national agencies) that procure through competitive bids and long-term programs, supporting large project-based equipment revenue plus recurring service/software streams over the life of the system. Commercial and enterprise security customers also contribute, particularly through video security hardware and software subscriptions. Partnerships: null

Motorola Solutions Financial Statement Overview

Summary

Strong profitability and cash generation (Income Statement 86; Cash Flow 84) with expanding margins and solid free-cash-flow conversion, offset by materially elevated leverage and thin equity (Balance Sheet 58), especially after the 2025 debt increase.

Income Statement

Motorola Solutions shows strong, durable profitability with expanding margins. Revenue has grown steadily from $7.4B (2020) to $11.7B (2025), and 2025 net margin improved to ~18.4% (vs. ~14.6% in 2024). Operating profitability is also strong (2025 operating margin ~25.2%), supporting healthy earnings power despite a more moderate revenue growth pace in 2025 (~3.3%) versus the stronger growth rates seen in 2021–2023.

Balance Sheet

The balance sheet is the key mixed area: leverage is elevated relative to equity. Total debt increased to ~$10.1B in 2025 (from ~$6.6B in 2024), and debt-to-equity remains high (~4.19x in 2025). Equity has improved from negative levels in 2020–2021 to positive since 2022, but it is still relatively thin versus the debt load, which can limit flexibility in a tougher demand or rate environment.

Cash Flow

Cash generation is a clear strength. Operating cash flow and free cash flow have trended upward over time, reaching ~$2.84B and ~$2.57B in 2025, respectively, with free cash flow growth of ~6.5% in 2025. Free cash flow conversion is solid (free cash flow is ~90.7% of net income in 2025), indicating earnings quality is supported by cash, although operating cash flow covers less than half of total debt (coverage ~0.47x in 2025), reflecting the higher leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.68B	10.82B	9.98B	9.11B	8.17B
Gross Profit	5.86B	5.51B	4.97B	4.23B	4.04B
EBITDA	3.52B	2.60B	2.75B	2.19B	2.21B
Net Income	2.15B	1.58B	1.71B	1.36B	1.25B
Balance Sheet
Total Assets	19.39B	14.60B	13.34B	12.81B	12.19B
Cash, Cash Equivalents and Short-Term Investments	1.17B	2.10B	1.71B	1.32B	1.87B
Total Debt	9.77B	6.55B	6.55B	6.55B	6.13B
Total Liabilities	16.96B	12.88B	12.60B	12.68B	12.21B
Stockholders Equity	2.41B	1.70B	724.00M	116.00M	-40.00M
Cash Flow
Free Cash Flow	2.57B	2.13B	1.79B	1.57B	1.59B
Operating Cash Flow	2.84B	2.39B	2.04B	1.82B	1.84B
Investing Cash Flow	-5.16B	-507.00M	-414.00M	-1.39B	-742.00M
Financing Cash Flow	1.31B	-1.45B	-1.29B	-906.00M	-429.00M

Motorola Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 469.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSI, the sentiment is Positive. The current price of 469.09 is above the 20-day moving average (MA) of 468.11, above the 50-day MA of 430.75, and above the 200-day MA of 424.47, indicating a bullish trend. The MACD of 10.02 indicates Positive momentum. The RSI at 60.94 is Neutral, neither overbought nor oversold. The STOCH value of 64.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSI.

Motorola Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSI	75 Outperform	$77.71B	29.58	103.24%	1.18%	6.17%	35.41%
CSCO	74 Outperform	$313.11B	23.23	23.64%	2.09%	8.91%	14.53%
ERIC	70 Outperform	$40.13B	11.10	29.57%	2.51%	1.04%	―
ZBRA	66 Neutral	$10.28B	29.45	11.50%	―	13.35%	34.73%
HPE	66 Neutral	$28.75B	17.34	-0.64%	2.17%	14.17%	-102.25%
NOK	63 Neutral	$48.05B	49.36	4.38%	2.26%	5.05%	115.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Motorola Solutions Corporate Events

Motorola Solutions Adds Peter Leav to Board of Directors

On March 12, 2026, Motorola Solutions increased the size of its board of directors from eight to nine members and appointed technology veteran Peter A. Leav as a director and member of the Compensation and Leadership Committee, effective immediately after that day’s board meetings. Leav will serve until the company’s 2026 annual meeting, receiving standard non-employee director compensation, and there were no special arrangements or related-party interests involved in his election.

Leav, currently a senior advisor at TPG, brings more than 25 years of leadership experience in large-scale software and cybersecurity-focused technology companies, including prior roles as president and CEO of McAfee, BMC Software and Polycom and board positions at several enterprise software firms. His appointment underscores Motorola Solutions’ push to deepen its software and cybersecurity capabilities as it seeks to accelerate growth and strengthen its industry-leading position in mission-critical safety and security markets.

The most recent analyst rating on (MSI) stock is a Buy with a $506.00 price target. To see the full list of analyst forecasts on Motorola Solutions stock, see the MSI Stock Forecast page.