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Motorola Solutions
(NYSE:MSI)
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Rating:72Outperform
Price Target:
$518.00
▲(23.97% Upside)
Action:Reiterated
Date:08/18/26
MSI scores well on durable operating performance and cash generation, supported by positive price momentum and a guidance raise with strong backlog. The overall score is held back by a highly leveraged balance sheet and a premium valuation (high P/E with a modest yield), which increase downside sensitivity if costs (e.g., memory) or financing conditions deteriorate.
Positive Factors
Backlog and Revenue Growth
Double-digit growth and record multiyear backlog indicate durable demand for mission-critical communications, video, and software. These contracted projects improve revenue visibility and support continued adoption across public safety and enterprise customers.
Negative Factors
High Leverage
The debt-heavy capital structure and historically thin equity cushion amplify refinancing and interest-rate risk. Although cash generation is strong, only partial debt coverage by operating cash flow limits flexibility if growth slows or acquisition spending rises.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog and Revenue Growth
Double-digit growth and record multiyear backlog indicate durable demand for mission-critical communications, video, and software. These contracted projects improve revenue visibility and support continued adoption across public safety and enterprise customers.
Read all positive factors
Motorola Solutions Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Motorola Solutions is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Motorola Solutions is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
The FlyMotorola Solutions (MSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$79.51B
Dividend Yield0.98%
Average Volume (3M)994.95K
Price to Earnings (P/E)37.5
Beta (1Y)0.54
Revenue Growth10.30%
EPS Growth1.37%
CountryUS
Employees23,000
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)12.84
Shares Outstanding165,493,790
10 Day Avg. Volume836,326
30 Day Avg. Volume994,946
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)26.43
Price to Sales (P/S)5.45
P/FCF Ratio24.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$524.29Price Target Upside25.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)17.64
Revenue Forecast (FY)$12.80B
Motorola Solutions Business Overview & Revenue Model
Company Description
Motorola Solutions, Inc. (MSI) is a public safety and enterprise security technology company that provides mission-critical communications, video security, access control, and command center software used primarily by government and public safety ...
How the Company Makes Money
Motorola Solutions makes money by selling and supporting a mix of hardware, software, and services across its primary segments (commonly reported as Products and Systems Integration, and Software and Services). Key revenue streams include: (1) Mis...
Motorola Solutions Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational performance: record revenue, double-digit growth across segments and technologies, significant margin expansion, robust cash flow, record backlog, and an upward revision to full-year guidance. Key growth engines (Silvus, MCN, APX NEXT, D‑Series infrastructure and software subscriptions) are showing clear traction. Headwinds include materially higher memory costs, a one-time tariff refund that boosted Q2 results, elevated inventory and integration/financing activity for acquisitions (D-Fend), and small sequential backlog dips in product. On balance, the positive operational momentum and guidance raise materially outweigh the noted challenges.Positive Updates
Record Revenue and Double-Digit Growth
Q2 revenue grew 13% year-over-year, driven by double-digit growth in both segments and across all three technologies; Products & Systems Integration grew 15% and Software & Services grew 10%.
Negative Updates
Rising Memory Costs
Direct memory spend is expected to increase to approximately $150M this year versus $50M last year — a $100M increase that creates material cost headwinds and is weighted into second-half gross margin pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Double-Digit Growth
Q2 revenue grew 13% year-over-year, driven by double-digit growth in both segments and across all three technologies; Products & Systems Integration grew 15% and Software & Services grew 10%.
Read all positive updates
Company Guidance
The company guided Q3 revenue to grow roughly 8% with non‑GAAP EPS of $4.39–$4.44, assuming ~168 million diluted shares and an effective tax rate of ~23%; for the full year it raised revenue guidance to ~$12.975 billion (up $175 million from $12.8B) and non‑GAAP EPS to $17.62–$17.72 (up from $16.87–$16.99), again assuming ~168M shares, an effective tax rate of 22–22.5% and ~$100 million of favorable FX. The raise is driven by MCN (now expected to grow 10–11%, including ~$100M from Silvus, which is now expected to deliver ~ $850M for the year), with Products & SI and Software & Services each forecast to grow ~11%; Video is expected to grow 11% and Command Center ~15%. Management expects tariff impact to be neutral for the year (Q2 included a $60M IEEPA refund), direct memory spend to be ~ $150M (vs. $50M last year), gross margins roughly flat year‑over‑year, full‑year operating margin expansion of ~170 bps (up from prior 100 bps), plans to raise ~ $1B of incremental debt to fund the D‑Fend acquisition, and to finish the year near a ~2x net debt/EBITDA leverage.Motorola Solutions Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
44
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.24B | 11.68B | 10.82B | 9.98B | 9.11B | 8.17B |
| Gross Profit | 6.11B | 5.86B | 5.51B | 4.97B | 4.23B | 4.04B |
| EBITDA | 3.80B | 3.52B | 2.60B | 2.75B | 2.19B | 2.21B |
| Net Income | 2.13B | 2.15B | 1.58B | 1.71B | 1.36B | 1.25B |
Balance Sheet | ||||||
| Total Assets | 19.24B | 19.39B | 14.60B | 13.34B | 12.81B | 12.19B |
| Cash, Cash Equivalents and Short-Term Investments | 710.00M | 1.17B | 2.10B | 1.71B | 1.32B | 1.87B |
| Total Debt | 9.62B | 9.77B | 6.55B | 6.55B | 6.55B | 6.13B |
| Total Liabilities | 16.55B | 16.96B | 12.88B | 12.60B | 12.68B | 12.21B |
| Stockholders Equity | 2.67B | 2.41B | 1.70B | 724.00M | 116.00M | -40.00M |
Cash Flow | ||||||
| Free Cash Flow | 2.68B | 2.57B | 2.13B | 1.79B | 1.57B | 1.59B |
| Operating Cash Flow | 2.97B | 2.84B | 2.39B | 2.04B | 1.82B | 1.84B |
| Investing Cash Flow | -4.96B | -5.16B | -507.00M | -414.00M | -1.39B | -742.00M |
| Financing Cash Flow | -467.00M | 1.31B | -1.45B | -1.29B | -906.00M | -429.00M |
Motorola Solutions Technical Analysis
Positive
417.83
Price Trends
431.30
Positive
425.97
Positive
417.29
Positive
Market Momentum
14.92
Negative
67.92
Neutral
85.85
Negative
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 417.83 is below the 20-day moving average (MA) of 460.96, below the 50-day MA of 431.30, and above the 200-day MA of 417.29, indicating a bullish trend. The MACD of 14.92 indicates Negative momentum. The RSI at 67.92 is Neutral, neither overbought nor oversold. The STOCH value of 85.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSI.
Motorola Solutions Risk Analysis
Motorola Solutions disclosed 27 risk factors in its most recent earnings report. Motorola Solutions reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Motorola Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $33.83B | 34.85 | 85.62% | 0.59% | 27.22% | 34.82% | |
75 Outperform | $17.43B | 33.99 | 15.14% | ― | 13.45% | 3.31% | |
72 Outperform | $79.51B | 37.50 | 85.76% | 1.13% | 10.30% | 1.37% | |
71 Outperform | $437.66B | 32.81 | 25.14% | 1.45% | 11.77% | 27.65% | |
66 Neutral | $33.94B | 13.05 | 23.57% | 3.35% | 2.72% | 56.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $57.00B | 67.67 | 4.55% | 1.80% | 13.04% | -24.13% |
* Technology Sector Average
MSI
Motorola Solutions
485.39
34.85
7.74%
CSCO
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111.11
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ERIC
Telefonaktiebolaget LM Ericsson
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NOK
Nokia
10.35
6.12
144.85%
UI
Ubiquiti Networks
575.79
43.49
8.17%
ZBRA
Zebra Tech
360.52
39.94
12.46%
Motorola Solutions Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Motorola Solutions Boosts Capital Flexibility With Debt Offering
Positive
Aug 17, 2026
On August 17, 2026, Motorola Solutions closed an underwritten public offering of senior notes, issuing $350 million of 4.850% notes due 2029 and $600 million of 5.650% notes due 2036 under an existing indenture with The Bank of New York Mellon Tru...
Executive/Board ChangesShareholder Meetings
Motorola Solutions Shareholders Endorse Board and Governance Measures
Positive
May 20, 2026
At its Annual Meeting of Shareholders held on May 18, 2026, Motorola Solutions investors elected all nominated directors, including CEO Gregory Q. Brown and seven other board members, to serve one-year terms, reflecting broad shareholder support f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.