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Motorola Solutions
(NYSE:MSI)
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Rating:67Neutral
Price Target:
$499.00
▲(2.80% Upside)
Action:Downgraded
Date:09/10/26
The score is driven primarily by strong operating performance and cash generation, reinforced by a constructive earnings update with raised guidance and backlog strength. Offsetting these positives are meaningful leverage/balance-sheet risk and only moderate technical momentum, while a high P/E and modest dividend yield reduce valuation support.
Positive Factors
Broad-based revenue and earnings growth
Double-digit growth across both segments and all three technologies indicates broad customer demand rather than reliance on one product line. Combined with faster earnings growth, this supports ongoing investment, operating leverage, and durable expansion of the company’s earnings base over the next several quarters.
Negative Factors
Debt-heavy balance sheet
Elevated leverage and a relatively thin equity cushion increase sensitivity to interest expense, refinancing conditions, and execution setbacks. Although equity has improved, the debt-heavy structure can constrain capital allocation and make future acquisitions or shareholder returns more dependent on sustained cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue and earnings growth
Double-digit growth across both segments and all three technologies indicates broad customer demand rather than reliance on one product line. Combined with faster earnings growth, this supports ongoing investment, operating leverage, and durable expansion of the company’s earnings base 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
$73.51B
Dividend Yield1.09%
Average Volume (3M)863.37K
Price to Earnings (P/E)34.6
Beta (1Y)0.53
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. Volume792,759
30 Day Avg. Volume863,374
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 Cap1.08
Enterprise Value/Revenue6.50
Enterprise Value/Gross Profit13.02
Enterprise Value/Ebitda21.15
Forecast
1Y Price Target
$525.17Price Target Upside8.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)17.7
Revenue Forecast (FY)$12.97B
Motorola Solutions Business Overview & Revenue Model
Company Description
Motorola Solutions, Inc. delivers essential communication and data analysis capabilities vital for critical operations across the United States, the United Kingdom, Canada, and other international markets. The company structures its extensive oper...
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 | 3.76B | 3.50B | 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
Negative
485.39
Price Trends
462.54
Negative
436.08
Positive
430.87
Positive
Market Momentum
-4.13
Positive
39.06
Neutral
21.33
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 485.39 is above the 20-day moving average (MA) of 455.05, above the 50-day MA of 462.54, and above the 200-day MA of 430.87, indicating a neutral trend. The MACD of -4.13 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 21.33 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $18.32B | 36.22 | 15.14% | ― | 13.45% | 3.31% | |
74 Outperform | $466.76B | 35.24 | 27.39% | 1.41% | 11.77% | 27.65% | |
71 Outperform | $32.04B | 12.95 | 23.57% | 3.34% | 2.72% | 56.42% | |
71 Outperform | $39.78B | 41.42 | 85.62% | 0.52% | 27.22% | 34.82% | |
67 Neutral | $73.51B | 34.59 | 85.76% | 1.09% | 10.30% | 1.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $58.27B | 73.42 | 4.55% | 1.58% | 13.04% | -24.13% |
* Technology Sector Average
MSI
Motorola Solutions
444.18
-6.84
-1.52%
CSCO
Cisco Systems
118.39
52.16
78.75%
ERIC
Telefonaktiebolaget LM Ericsson
9.56
1.55
19.41%
NOK
Nokia
10.36
5.19
100.27%
UI
Ubiquiti Networks
657.29
-25.79
-3.78%
ZBRA
Zebra Tech
387.18
105.22
37.32%
Motorola Solutions Corporate Events
Business Operations and StrategyStock Buyback
Motorola Solutions Expands Long-Term Share Repurchase Authorization
Positive
Sep 9, 2026
On September 9, 2026, Motorola Solutions announced that its board had approved a $2 billion increase to its share repurchase program, lifting total authorization since July 2011 to $20 billion with no expiration date. At the end of the second quar...
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...
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.