Motorola Solutions (NYSE:MSI) Releases Earnings Results, Beats Expectations By $0.24 EPS

Motorola Solutions (NYSE:MSI) issued its earnings results on Wednesday. The communications equipment provider reported $4.59 EPS for the quarter, beating analysts’ consensus estimates of $4.35 by $0.24, FiscalAI reports. The business had revenue of $3.38 billion during the quarter, compared to analysts’ expectations of $3.34 billion. Motorola Solutions had a net margin of 18.44% and a return on equity of 116.73%. The company’s quarterly revenue was up 12.3% compared to the same quarter last year. During the same period in the prior year, the business earned $4.04 earnings per share.

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

• Motorola finished 2025 with record results — strong Q4 revenue and operating earnings, non?GAAP operating margin a record 30.3%, record operating cash flow of $2.8B, and an all?time high backlog of $15.7 billion.
• 2026 outlook calls for approximately $12.7 billion revenue, non?GAAP EPS $16.70–16.85, Q1 sales +6–7% and ~$3 billion in operating cash flow, with Software & Services and Command Center expected to be key growth drivers.
• The Silvus acquisition is accelerating integration and demand—management raised Silvus revenue expectations to $675 million for 2026, driven by international and unmanned?systems opportunities (notably Ukraine, U.K., Germany).
• Management launched AI?powered Assist Suites for dispatchers and responders at $99/user/month, shipped ~15,000 SVX body?worn assistant units and secured FedRAMP approvals for APEX Next/SVX/evidence platforms, which should expand federal TAM and recurring software revenue.
• Near?term margin pressure risks include an incremental $60 million tariff headwind expected in H1 2026, some rising memory costs (modest), higher interest from financing and increased acquisition?related OpEx, and a slightly higher effective tax rate.

Motorola Solutions Trading Up 1.7%

Shares of NYSE:MSI traded up $7.52 during midday trading on Friday, reaching $460.96. 345,020 shares of the company’s stock were exchanged, compared to its average volume of 1,187,411. The stock has a market cap of $76.77 billion, a price-to-earnings ratio of 36.01, a P/E/G ratio of 3.15 and a beta of 1.00. Motorola Solutions has a fifty-two week low of $359.36 and a fifty-two week high of $492.22. The firm’s 50 day simple moving average is $390.28 and its two-hundred day simple moving average is $421.11. The company has a debt-to-equity ratio of 3.59, a current ratio of 1.03 and a quick ratio of 0.86.

Motorola Solutions Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Stockholders of record on Monday, December 15th were issued a dividend of $1.21 per share. The ex-dividend date was Monday, December 15th. This represents a $4.84 dividend on an annualized basis and a dividend yield of 1.0%. This is a boost from Motorola Solutions’s previous quarterly dividend of $0.01. Motorola Solutions’s dividend payout ratio (DPR) is currently 38.84%.

Institutional Investors Weigh In On Motorola Solutions

Institutional investors have recently made changes to their positions in the stock. JPL Wealth Management LLC acquired a new position in shares of Motorola Solutions in the 3rd quarter worth approximately $31,000. WFA of San Diego LLC purchased a new stake in Motorola Solutions in the second quarter valued at approximately $59,000. Turning Point Benefit Group Inc. acquired a new position in Motorola Solutions during the third quarter worth $73,000. Triumph Capital Management acquired a new position in Motorola Solutions during the fourth quarter worth $147,000. Finally, AlphaCentric Advisors LLC purchased a new position in shares of Motorola Solutions during the fourth quarter worth $178,000. 84.17% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of analysts have commented on MSI shares. Piper Sandler reiterated an “overweight” rating and issued a $499.00 price objective (up previously from $443.00) on shares of Motorola Solutions in a report on Thursday. Morgan Stanley reaffirmed an “overweight” rating and issued a $470.00 price target on shares of Motorola Solutions in a report on Thursday. JPMorgan Chase & Co. boosted their price objective on Motorola Solutions from $515.00 to $520.00 and gave the stock an “overweight” rating in a research note on Thursday. Weiss Ratings cut Motorola Solutions from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday. Finally, Barclays lifted their price target on Motorola Solutions from $495.00 to $506.00 and gave the stock an “overweight” rating in a report on Thursday. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Motorola Solutions currently has an average rating of “Moderate Buy” and an average target price of $497.14.

Key Headlines Impacting Motorola Solutions

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

• Positive Sentiment: Posted record Q4 sales, earnings and backlog; management reiterated momentum and raised its 2026 outlook, citing strong demand and cash flow — the company’s official results and commentary. Motorola Solutions Reports Fourth-Quarter and Full-Year Financial Results
• Positive Sentiment: Raised FY2026 EPS guidance to $16.70–$16.85 versus consensus ~$15.70 and issued FY revenue guidance around $12.7B — a clear beat on earnings expectations that supports higher valuation assumptions. Guidance in Company Release
• Positive Sentiment: Quarterly results beat estimates: EPS $4.59 vs. consensus ~$4.35 and revenue $3.38B topping forecasts; margins expanded — reinforces revenue quality and profitability improvement. Motorola Beats Q4 Earnings Estimates on Record Revenues & Margins
• Positive Sentiment: JPMorgan raised its price target to $520 and kept an Overweight rating, signaling analyst confidence in upside after the results and guide raise. Benzinga
• Positive Sentiment: Management highlighted AI-driven video safety and backlog expansion as structural growth drivers, reinforcing secular tailwinds that could lift medium-term revenue and margins. MSI Q4 Deep Dive: AI-Driven Solutions and Backlog Expansion Propel Growth
• Neutral Sentiment: Full earnings call transcript, slide deck and analyst materials are available for deeper scrutiny of segment trends and backlog timing — useful for investors modeling FY2026 cadence. Q4 Slide Deck / Press Release Earnings Call Transcript
• Negative Sentiment: Q1 2026 revenue guidance of ~$2.7B came in below some consensus estimates (~$2.8B), which could pressure near-term expectations if backlog timing shifts or product delivery lags.

About Motorola Solutions

Motorola Solutions, Inc is a provider of mission-critical communications and analytics solutions for public safety and commercial customers. The company designs, manufactures and supports a range of communications equipment and software aimed at enabling first responders, government agencies and enterprises to coordinate and operate reliably in high-pressure environments. Its offerings emphasize secure, resilient connectivity and situational awareness for organizations that require dependable voice, data and video communications.

Product lines include land mobile radio (LMR) systems and handheld and vehicle-mounted radios used by police, fire and emergency medical services; broadband push-to-talk and LTE-based solutions; command-and-control center software for incident management and records; and video security and analytics systems.