Motorola Solutions (NYSE:MSI) Issues Quarterly Earnings Results

Motorola Solutions (NYSE:MSI) released its earnings results on Wednesday. The communications equipment provider reported $4.69 earnings per share for the quarter, beating analysts’ consensus estimates of $4.42 by $0.27, FiscalAI reports. Motorola Solutions had a return on equity of 98.22% and a net margin of 17.44%. The firm had revenue of $3.38 billion during the quarter, compared to the consensus estimate of $3.25 billion. During the same period in the prior year, the company posted $4.06 EPS. The company’s revenue was up 12.2% compared to the same quarter last year.

Here are the key takeaways from Motorola Solutions’ conference call:

• Q3 revenue grew 12%, and non-GAAP EPS rose 16% to $4.69. Non-GAAP operating margin expanded 200 basis points to 32.5%, despite higher supply-chain costs.
• Record orders across all three technologies lifted backlog to an all-time high of $16.6 billion, up $1 billion sequentially and $2.1 billion year over year. Management cited broad-based demand across both segments.
• The company raised full-year revenue guidance to about $13.05 billion and non-GAAP EPS guidance to $17.94–$17.99, and increased its operating cash flow expectation to $3.05 billion. It also indicated preliminary 2027 revenue expectations of about $14.25 billion, with stronger organic growth and further margin expansion.
• Motorola Solutions said Silvus is on pace to generate more than $900 million in 2026 revenue and expects roughly 30% growth in 2027. It expects D-Fend, acquired for $1.3 billion, to contribute about $45 million during its 2026 stub period and grow 40%–50% in 2027.
• Rising memory costs are a headwind: direct memory component costs were about $150 million in 2026 versus $50 million in 2025, and management said costs could double again in 2027. Management expects to offset the pressure through operational measures and selective pricing, but noted the $75 million tariff benefit received this year will not recur next year.

Motorola Solutions Stock Up 0.9%

MSI stock opened at $495.29 on Thursday. The stock’s 50 day simple moving average is $466.82 and its 200 day simple moving average is $440.68. Motorola Solutions has a fifty-two week low of $359.36 and a fifty-two week high of $499.00. The company has a debt-to-equity ratio of 3.13, a quick ratio of 0.86 and a current ratio of 1.10. The company has a market cap of $81.96 billion, a P/E ratio of 39.00, a price-to-earnings-growth ratio of 2.93 and a beta of 0.86.

Motorola Solutions Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 16th were given a $1.21 dividend. This represents a $4.84 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Wednesday, September 16th. Motorola Solutions’s payout ratio is presently 38.11%.

Insider Buying and Selling

In other news, SVP Kathryn Moore sold 1,004 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $476.96, for a total transaction of $478,867.84. Following the transaction, the senior vice president directly owned 1,282 shares of the company’s stock, valued at $611,462.72. This represents a 43.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Gregory Q. Brown sold 14,220 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $485.22, for a total value of $6,899,828.40. Following the completion of the transaction, the chief executive officer owned 66,648 shares in the company, valued at approximately $32,338,942.56. This represents a 17.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 1.28% of the company’s stock.

Wall Street Analysts Forecast Growth

MSI has been the topic of a number of research analyst reports. Piper Sandler raised their target price on shares of Motorola Solutions from $530.00 to $531.00 and gave the company an “overweight” rating in a research report on Tuesday, September 22nd. Raymond James Financial increased their target price on Motorola Solutions from $530.00 to $550.00 in a research report on Thursday, August 6th. Northcoast Research boosted their price target on Motorola Solutions from $510.00 to $525.00 in a report on Thursday, August 27th. Truist Financial raised their price objective on shares of Motorola Solutions from $525.00 to $545.00 and gave the company a “buy” rating in a report on Friday, August 7th. Finally, Morgan Stanley restated an “overweight” rating and issued a $476.00 price objective (up from $470.00) on shares of Motorola Solutions in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $530.10.

Key Headlines Impacting Motorola Solutions

Here are the key news stories impacting Motorola Solutions this week:

• Positive Sentiment: Third-quarter earnings were $4.69 per share, above the roughly $4.41–$4.42 consensus, while revenue of $3.38 billion topped estimates of $3.25 billion and grew 12.2% year over year. Motorola Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised its 2026 adjusted EPS outlook to $17.94–$17.99, above FactSet’s $17.71 estimate. Reports also cited a record $16.6 billion backlog, which could provide visibility into future demand. Motorola Solutions Raises 2026 EPS Outlook
• Negative Sentiment: Despite the earnings beat and higher annual outlook, quarterly revenue guidance was reported to be slightly below expectations, potentially tempering the positive reaction. Quarterly Revenue Guidance Slightly Misses Expectations

About Motorola Solutions

Motorola Solutions, Inc provides mission-critical communications, public safety, and enterprise security technologies. The company develops products and services that help governments, law enforcement agencies, emergency responders, commercial organizations, and other institutions coordinate operations, protect people, and manage critical events.

Its portfolio includes two-way radios and broadband communication systems, command center software, computer-aided dispatch and records management solutions, video security and analytics, access control, and cybersecurity services.