Motorola Solutions (MSI) AI Stock Analysis

• Market Cap: $78.00B
• Dividend Yield: 1.18%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.60
• 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: 1,258,961
• 30 Day Avg. Volume: 1,192,224
• 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: 7.46
• Enterprise Value/Gross Profit: 14.86
• Enterprise Value/Ebitda: 24.71
• 1Y Price Target: $495.71
• Price Target Upside: 5.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 16.75
• Revenue Forecast (FY): $12.69B

• Rating: 75 Outperform
• Price Target: $474.00 ▲(0.67% Upside)
• Action: Upgraded Date: 02/13/26
• Date: Action: Upgraded 02/13/26

The score is driven primarily by strong financial performance (durable margins and robust free cash flow) and a positive earnings outlook with record backlog and margin expansion guidance. Offsetting factors are the elevated leverage profile and a premium valuation, while technicals remain bullish but appear overbought, raising near-term volatility risk.

Positive Factors

Strong free cash flow generation

Consistent, high-quality cash generation (OCF ~$2.84B; FCF ~$2.57B in 2025) supports reinvestment, dividends and buybacks. Strong FCF conversion (~90.7% of net income) underpins balance-sheet resilience and funds strategic M&A or product investment without sole reliance on equity.

Durable, high operating margins

Sustained >30% non-GAAP operating margins and improving net margin (~18.4% in 2025) reflect structural profitability across hardware and software lines. High margins indicate pricing power, scale benefits and a favorable mix shift to higher-margin software & services, supporting long-term earnings durability.

Growing recurring software & strategic product approvals

Double-digit growth and high margins in Software & Services, plus FedRAMP approval and new AI Assist Suites, expand recurring revenue and customer lock-in. These product and certification milestones increase predictable, sticky revenue and improve long-term gross margin mix.

Negative Factors

Elevated leverage after 2025 financing

Debt rising to ~$10.1B with debt-to-equity near 4.2x meaningfully raises financial leverage. Elevated leverage increases interest-service risk, reduces capital allocation flexibility, and heightens sensitivity to demand shocks or rising rates, constraining strategic optionality over the medium term.

Higher operating expenses and interest from acquisitions

Acquisition-driven OpEx increases and elevated interest costs are structural cost items that can persist while integrations and growth initiatives scale. Higher ongoing SG&A and financing expenses can compress incremental free cash flow and require sustained margin gains to preserve return generation.

Commercial constraints for Silvus expansion

Silvus acquisition offers addressable-market upside, but spectrum/STAs limit public-safety commercialization in key domestic markets. Regulatory and spectrum dependencies can delay revenue synergies and recurring-service adoption, prolonging the timeline to realize acquisition value.

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 generates revenue through a diversified model that includes hardware sales, software solutions, and services. Key revenue streams consist of selling radios and communication devices, which form a significant portion of its income. Additionally, the company offers software solutions for dispatch, incident management, and analytics, contributing to recurring revenue through subscriptions and long-term contracts. Its services, including maintenance and support, also provide a steady revenue base. Collaborations with public safety organizations and government contracts enhance its earnings, as these partnerships often result in large-scale deployments of its technology. The focus on innovation and expanding its product offerings, such as cloud-based solutions and integrated security systems, further supports its financial growth.

Motorola Solutions Financial Statement Overview

Summary

Strong profitability and expanding margins with steady multi-year revenue growth, plus robust and high-quality free cash flow generation. The main offset is elevated leverage after the 2025 debt increase and relatively thin equity, which reduces financial flexibility.

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: 470.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 470.85 is above the 20-day moving average (MA) of 431.30, above the 50-day MA of 401.73, and above the 200-day MA of 420.33, indicating a bullish trend. The MACD of 18.88 indicates Negative momentum. The RSI at 81.18 is Negative, neither overbought nor oversold. The STOCH value of 90.51 is Negative, 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	$78.00B	36.49	104.74%	1.18%	6.17%	35.41%
CSCO	74 Outperform	$308.64B	27.35	24.34%	2.09%	8.91%	14.53%
ERIC	70 Outperform	$36.83B	12.77	―	2.51%	1.04%	―
HPE	67 Neutral	$26.91B	-265.75	0.23%	2.17%	14.17%	-102.25%
ZBRA	66 Neutral	$11.60B	28.88	11.68%	―	13.35%	34.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NOK	59 Neutral	$41.58B	57.74	3.20%	2.26%	5.05%	115.92%

Motorola Solutions Corporate Events

Motorola Solutions Expands Board with New Appointment

On November 18, 2025, Motorola Solutions announced the expansion of its Board of Directors from seven to eight members, appointing Dr. Mark E. Lashier as a new director and member of the Governance and Nominating Committee. Dr. Lashier, currently the Chairman and CEO of Phillips 66, brings over 30 years of experience in the energy and petrochemical industries to the board. His appointment is expected to enhance Motorola Solutions’ leadership as it continues to innovate and invest in safety and security solutions globally.

The most recent analyst rating on (MSI) stock is a Buy with a $449.00 price target. To see the full list of analyst forecasts on Motorola Solutions stock, see the MSI Stock Forecast page.