Motorola Solutions (MSI)
NYSE:MSI
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Motorola Solutions
(NYSE:MSI)
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Rating:75Outperform
Price Target:
$520.00
▲(17.66% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Motorola Solutions (MSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.97B
Dividend Yield1.18%
Average Volume (3M)985.51K
Price to Earnings (P/E)29.6
Beta (1Y)0.57
Revenue Growth8.00%
EPS Growth36.98%
CountryUS
Employees21,000
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)4.59
Shares Outstanding166,203,610
10 Day Avg. Volume795,082
30 Day Avg. Volume985,510
Financial Highlights & Ratios
PEG Ratio0.80
Price to Book (P/B)26.43
Price to Sales (P/S)5.45
P/FCF Ratio24.77
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue6.84
Enterprise Value/Gross Profit13.64
Enterprise Value/Ebitda22.68
Forecast
1Y Price Target
$508.57Price Target Upside15.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)16.78
Revenue Forecast (FY)$12.69B
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 Service...
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...
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.
Data provided by:
The Fly
The FlyMotorola Solutions Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based operational and financial momentum: record revenue, operating earnings, margins, and cash flow, sizable backlog growth and large customer wins, successful product launches (SVX, APEX Next, Assist Suites), and an upgraded Silvus revenue outlook. Offsetting items include tariff and parts cost headwinds, higher OpEx and interest from acquisitions and financing, product-backlog normalization and seasonal Q1 softness, and some commercialization limits for Silvus tied to spectrum. On balance, the positive operational execution, robust cash generation, margin expansion, and raised guidance materially outweigh the manageable near-term headwinds, indicating a constructive outlook.Positive Updates
Record Company Financials and Margins
Full-year 2025 revenue of $11.7B (+8% YoY); non-GAAP EPS $15.38 (+11% YoY); GAAP EPS $12.75 (+38% YoY, aided by prior-year accounting impact). Company achieved first-ever >30% annual non-GAAP operating margin (30.3%, +130 bps YoY).
Negative Updates
Tariffs and Cost Headwinds
Management expects an incremental tariff headwind of approximately $60M in the first half of 2026; tariffs were called out as a partial offset to margin expansion in 2025 and 2026 planning.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Company Financials and Margins
Full-year 2025 revenue of $11.7B (+8% YoY); non-GAAP EPS $15.38 (+11% YoY); GAAP EPS $12.75 (+38% YoY, aided by prior-year accounting impact). Company achieved first-ever >30% annual non-GAAP operating margin (30.3%, +130 bps YoY).
Read all positive updates
Company Guidance
Management guided Q1 revenue to increase 6–7% with non‑GAAP EPS of $3.20–$3.25 (assumes ~168 million diluted shares and a 20.5% effective tax rate). For full‑year 2026 they expect about $12.7 billion of revenue, non‑GAAP EPS of $16.70–$16.85 (≈168 million shares, ~22.5% tax rate), roughly $3.0 billion of operating cash flow, and ~100 basis points of operating margin expansion; the outlook includes about $100 million of favorable FX and assumes an incremental tariff headwind of ~ $60 million in H1. Segment and technology targets in the guide are: Software & Services growth 10–11%, Products & SI 7–8%, video 10–11%, Command Center 15%, and MCN 7–8% (with MCN accelerating in H2), and management expects continued double‑digit product orders.Motorola Solutions Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
58
Neutral
Cash Flow
84
Very Positive
| 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
Positive
441.96
Price Trends
451.59
Negative
416.52
Positive
427.07
Positive
Market Momentum
-2.76
Negative
47.38
Neutral
61.96
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 441.96 is below the 20-day moving average (MA) of 442.57, below the 50-day MA of 451.59, and above the 200-day MA of 427.07, indicating a neutral trend. The MACD of -2.76 indicates Negative momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 61.96 is Neutral, 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 | $72.97B | 29.58 | 103.24% | 1.18% | 8.00% | 36.98% | |
74 Outperform | $361.42B | 23.23 | 23.64% | 2.09% | 9.00% | 24.93% | |
72 Outperform | $39.11B | 96.42 | 25.11% | 2.51% | 4.40% | 1595.74% | |
67 Neutral | $69.44B | 113.02 | 4.38% | 2.26% | 12.83% | 9.07% | |
66 Neutral | $10.94B | 29.45 | 11.50% | ― | 9.36% | -19.74% | |
66 Neutral | $38.17B | 17.34 | -0.64% | 2.17% | 15.04% | -108.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MSI
Motorola Solutions
439.03
37.00
9.20%
CSCO
Cisco Systems
91.50
33.51
57.77%
ERIC
Telefonaktiebolaget LM Ericsson
11.81
3.65
44.78%
NOK
Nokia
12.91
7.98
161.81%
ZBRA
Zebra Tech
226.26
-29.69
-11.60%
HPE
Hewlett Packard Enterprise
28.77
12.33
74.96%
Motorola Solutions Corporate Events
Business Operations and StrategyExecutive/Board Changes
Motorola Solutions Adds Peter Leav to Board of Directors
Positive
Mar 12, 2026
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 immediate...
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.