Motorola Solutions (MSI)
NYSE:MSI
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Motorola Solutions
(NYSE:MSI)
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Rating:70Outperform
Price Target:
$439.00
▼(-0.67% Downside)
Action:Upgraded
Date:05/21/26
The score is driven mainly by strong operating profitability/cash generation and a constructive earnings update with raised guidance and record orders/backlog. These positives are tempered by balance-sheet leverage risk, weak technical trend (price below key moving averages with negative MACD), and a demanding valuation (high P/E with a modest yield).
Positive Factors
High margins and profitability
Sustained high gross and operating margins indicate durable pricing power and efficient operations across mission-critical products and software. This margin profile supports reinvestment, R&D, and shareholder returns while providing a buffer against cyclical pressures over the next several quarters.
Negative Factors
High financial leverage
A debt-heavy capital structure materially reduces balance-sheet flexibility and heightens sensitivity to higher rates or cash-flow shocks. Even with solid cash flow, deleveraging will likely be gradual, constraining optionality for large buybacks or acquisitions in stressed conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and profitability
Sustained high gross and operating margins indicate durable pricing power and efficient operations across mission-critical products and software. This margin profile supports reinvestment, R&D, and shareholder returns while providing a buffer against cyclical pressures over the next several quarters.
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.
Data provided by:
The Fly
The FlyMotorola Solutions (MSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.08B
Dividend Yield1.18%
Average Volume (3M)1.13M
Price to Earnings (P/E)49.7
Beta (1Y)0.51
Revenue Growth8.32%
EPS Growth2.54%
CountryUS
Employees21,000
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)12.56
Shares Outstanding165,995,570
10 Day Avg. Volume1,406,160
30 Day Avg. Volume1,129,936
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 Cap1.13
Enterprise Value/Revenue6.39
Enterprise Value/Gross Profit12.96
Enterprise Value/Ebitda21.17
Forecast
1Y Price Target
$514.50Price Target Upside16.41% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)16.96
Revenue Forecast (FY)$12.78B
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 Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum: record revenue, robust 38% order growth, an 11% YoY backlog increase to $15.7B, double-digit growth in key software and Command Center/video technologies, and raised full-year top-line and EPS guidance. Those positives were balanced against near-term liquidity and cost pressures: GAAP earnings were hit by a $75M noncash Silvus earnout charge, operating and free cash flow declined vs. the prior year due to higher inventory and interest, and the company faces supply-chain headwinds (tariffs ~$60M and memory costs more than doubling). Management communicated confidence in execution, margin expansion of ~100 bps, and strategic M&A that expand recurring services. On balance, the highlights and forward guidance outweigh the lowlights given record orders/backlog, strong segment performance, and raised guidance.Positive Updates
Record Q1 Revenue and Top-Line Growth
Revenue was a record for Q1, up 7% year-over-year. The company raised full-year revenue guidance to approximately $12.8 billion (from $12.7 billion). Q2 sales growth is expected at ~8.5%.
Negative Updates
GAAP Earnings and Noncash Charges
GAAP operating earnings declined to $525 million (19.3% of sales) from 23% of sales a year ago due to a $75 million noncash charge related to an increased Silvus earnout and higher intangible amortization. GAAP EPS was $2.18, down from $2.53 (a $0.45 impact noted from the noncash charge).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Q1 Revenue and Top-Line Growth
Revenue was a record for Q1, up 7% year-over-year. The company raised full-year revenue guidance to approximately $12.8 billion (from $12.7 billion). Q2 sales growth is expected at ~8.5%.
Read all positive updates
Company Guidance
The company raised its outlook, guiding Q2 revenue growth of approximately 8.5% with non‑GAAP EPS of $3.82–$3.88 (assuming ~168 million diluted shares and an effective tax rate of ~23%); for the full year it now expects revenue of about $12.8 billion (up from $12.7B) and non‑GAAP EPS of $16.87–$16.99 (up from $16.70–$16.85), assuming ~168 million diluted shares, an effective tax rate of ~22.5% and ~$100 million of favorable FX, and it continues to expect roughly $3.0 billion of operating cash flow. Management also increased its Silvus revenue outlook to about $750 million (up $75M), now targets Products & SI growth of 8–9% and Mission Critical Networks growth of 8–9% (each up from 7–8%), expects to expand company operating margins by ~100 basis points for the year, and called out ~$60 million of tariff headwinds (mainly H1) and that direct memory spend will be a little more than double 2025’s ~$50 million level.Motorola Solutions Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
52
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.87B | 11.68B | 10.82B | 9.98B | 9.11B | 8.17B |
| Gross Profit | 5.85B | 5.86B | 5.51B | 4.97B | 4.23B | 4.04B |
| EBITDA | 3.58B | 3.52B | 2.60B | 2.75B | 2.19B | 2.21B |
| Net Income | 2.09B | 2.15B | 1.58B | 1.71B | 1.36B | 1.25B |
Balance Sheet | ||||||
| Total Assets | 19.08B | 19.39B | 14.60B | 13.34B | 12.81B | 12.19B |
| Cash, Cash Equivalents and Short-Term Investments | 886.00M | 1.17B | 2.10B | 1.71B | 1.32B | 1.87B |
| Total Debt | 9.59B | 9.77B | 6.55B | 6.55B | 6.55B | 6.13B |
| Total Liabilities | 16.52B | 16.96B | 12.88B | 12.60B | 12.68B | 12.21B |
| Stockholders Equity | 2.54B | 2.41B | 1.70B | 724.00M | 116.00M | -40.00M |
Cash Flow | ||||||
| Free Cash Flow | 2.49B | 2.57B | 2.13B | 1.79B | 1.57B | 1.59B |
| Operating Cash Flow | 2.78B | 2.84B | 2.39B | 2.04B | 1.82B | 1.84B |
| Investing Cash Flow | -4.87B | -5.16B | -507.00M | -414.00M | -1.39B | -742.00M |
| Financing Cash Flow | 1.38B | 1.31B | -1.45B | -1.29B | -906.00M | -429.00M |
Motorola Solutions Technical Analysis
Negative
441.96
Price Trends
433.61
Negative
428.97
Negative
426.83
Negative
Market Momentum
-10.79
Positive
42.79
Neutral
52.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSI, the sentiment is Negative. The current price of 441.96 is above the 20-day moving average (MA) of 414.01, above the 50-day MA of 433.61, and above the 200-day MA of 426.83, indicating a bearish trend. The MACD of -10.79 indicates Positive momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 52.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.17B | 18.92 | 11.59% | ― | 10.66% | -21.83% | |
72 Outperform | $474.59B | 26.09 | 25.14% | 2.09% | 9.21% | 25.97% | |
72 Outperform | $45.11B | 96.42 | 25.11% | 2.51% | 4.40% | 1595.74% | |
70 Outperform | $67.08B | 49.71 | 90.39% | 1.18% | 8.32% | 2.54% | |
69 Neutral | $49.86B | 17.34 | -0.64% | 2.17% | 15.04% | -108.60% | |
67 Neutral | $86.07B | 113.02 | 5.06% | 2.26% | 12.83% | 9.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MSI
Motorola Solutions
404.08
-10.31
-2.49%
CSCO
Cisco Systems
120.41
58.72
95.19%
ERIC
Telefonaktiebolaget LM Ericsson
13.50
5.03
59.39%
NOK
Nokia
15.47
10.23
195.34%
ZBRA
Zebra Tech
255.55
-28.66
-10.08%
HPE
Hewlett Packard Enterprise
37.58
20.59
121.19%
Motorola Solutions Corporate Events
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...
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.