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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on MSI

Breaking News: Motorola Solutions, Inc. reported its Q4 2025 earnings, beating estimates with quarterly earnings of $4.59 per share, up from $4.04 a year ago. The company achieved a 12% revenue growth, with a record backlog of $15.7 billion, up $1 billion year-over-year. CEO Greg Brown stated that the company's performance demonstrates its resilience and strength. The results led to a positive outlook for 2026. Analysts at Zacks recommend a buy.

1.c. Company Highlights

2. Motorola Solutions' Q4 2025 Earnings: A Strong Finish to the Year

Motorola Solutions reported a strong fourth quarter, with revenue growing 12% to $3.38 billion, driven by double-digit growth in both segments and all three technologies. GAAP operating earnings were $944 million, or 27.9% of sales, up from 27% in the year-ago quarter. Non-GAAP operating earnings were $1.1 billion, up 19% from the year-ago quarter, and non-GAAP operating margin was a record 32.1%, up 170 basis points. The company's EPS came in at $4.59, beating estimates of $4.35.

Publication Date: Feb -12

📋 Highlights
  • Record Q4 Revenue Growth:: Revenue rose 12% YoY to $3.2B (full-year $11.7B), driven by double-digit growth in both segments and all three technologies.
  • Backlog Surge:: Ended 2025 with $15.7B backlog, up $1B YoY, reflecting 26% order growth and strong demand in defense and infrastructure upgrades.
  • Margin Expansion:: Non-GAAP operating margin hit record 32.1%, up 170 basis points YoY, with full-year guidance of 30.3% margin (up from 29%).
  • Product Adoption:: SVX shipped 15,000 units; APEX Next projected to reach 300,000 users by 2026 (up from 200,000 in 2025) at $300/year per user.
  • 2026 Guidance Raised:: Full-year revenue raised to $12.7B (+8% YoY), with $3B operating cash flow and non-GAAP EPS of $16.70–$16.85/share.

Segment Performance

The company's Command business grew 19% in Q4, with 15% growth expected for the full year. The VESTA and NEXT portfolio are showing great traction, with cloud 911 call handling and the Dispatcher Assist Suite being key drivers. The company is well-positioned to continue growing both businesses in an integrated way.

Guidance and Outlook

For 2026, the company expects revenue to be approximately $12.7 billion, with non-GAAP EPS between $16.70 and $16.85 per share. Analysts estimate next year's revenue growth at 5.5%. The company also expects to continue driving growth in the Services and Software segment, which grew 13% last year and is guiding 10% to 11% growth this year.

Valuation and Ratios

With a P/E Ratio of 33.16 and an EV/EBITDA of 23.03, the company's valuation appears to be reflecting its strong growth prospects. The ROE of 110.8% and ROIC of 15.75% indicate a high level of profitability. The Net Debt / EBITDA ratio of 2.63 suggests a manageable level of debt. As the company continues to drive growth and expand its margins, its valuation may be justified.

Key Drivers and Initiatives

The company's strong performance was driven by the successful release of SVX, its body-worn assistant, and the latest generation D Series mission-critical infrastructure. The APEX Next platform is also showing good traction, with 300,000 users expected by 2026. The company's focus on defense, borders, and international markets, as well as its expansion into unmanned systems, are expected to drive future growth.

3. NewsRoom

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Motorola Beats Q4 Earnings Estimates on Record Revenues & Margins

Feb -12

Source: zacks.com

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Motorola Solutions Inc (MSI) Q4 2025 Earnings Call Highlights: Record Revenue and Strong Growth Across Segments

Feb -12

Source: gurufocus.com

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Motorola Solutions, Inc. (MSI) Q4 2025 Earnings Call Transcript

Feb -12

Source: seekingalpha.com

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Motorola (MSI) Q4 Earnings and Revenues Beat Estimates

Feb -11

Source: zacks.com

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Motorola Solutions forecasts annual sales and profit above estimates

Feb -11

Source: reuters.com

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Motorola Solutions Reports Fourth-Quarter and Full-Year Financial Results

Feb -11

Source: businesswire.com

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ERIC vs. MSI: Which Stock Is the Better Value Option?

Feb -11

Source: zacks.com

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Motorola Solutions SVX Earns Highest FedRAMP Authorization Level

Feb -10

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.61%)

6. Segments

Products and Systems Integration

Expected Growth: 4.5%

Motorola Solutions' integration of products and systems drives growth, fueled by increasing demand for public safety and commercial communications solutions.

Software and Services

Expected Growth: 10.3%

Motorola Solutions' public safety software and services segment is driven by increasing adoption of digital technologies, growing demand for mission-critical communications, and expanding presence in emerging markets.

7. Detailed Products

APX Radios

Mission-critical communication devices for public safety and first responders

MOTOTRBO Radios

Digital two-way radios for business and commercial use

Video Security Cameras

IP-based surveillance cameras for security and monitoring

Avigilon AI-powered Security Cameras

Intelligent surveillance cameras with artificial intelligence and machine learning capabilities

CommandCentral Software

Cloud-based software for public safety and emergency response

Records and Evidence Management Software

Digital evidence management system for law enforcement agencies

LTE Broadband Devices

High-speed wireless broadband devices for public safety and commercial use

8. Motorola Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Motorola Solutions, Inc. operates in a niche market with high barriers to entry, reducing the threat of substitutes. However, the increasing adoption of digital technologies and IoT solutions may lead to the emergence of new substitutes.

Bargaining Power Of Customers

Motorola Solutions, Inc. has a diverse customer base, including government agencies, public safety organizations, and enterprises. While customers have some bargaining power, the company's strong brand reputation and customized solutions reduce their negotiating power.

Bargaining Power Of Suppliers

Motorola Solutions, Inc. relies on a network of suppliers for components and materials. While the company has some bargaining power due to its size and scale, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The barriers to entry in Motorola Solutions, Inc.'s markets are relatively high, including significant R&D investments, regulatory hurdles, and established relationships with customers. New entrants would face significant challenges in replicating the company's capabilities and market presence.

Intensity Of Rivalry

The markets in which Motorola Solutions, Inc. operates are highly competitive, with established players and new entrants vying for market share. The company faces intense competition from rivals such as Harris Corporation, Thales Group, and Nokia Networks.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 89.46%
Debt Cost 4.76%
Equity Weight 10.54%
Equity Cost 8.50%
WACC 5.15%
Leverage 848.48%

11. Quality Control: Motorola Solutions, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Cisco

A-Score: 6.2/10

Value: 2.3

Growth: 4.0

Quality: 7.6

Yield: 5.0

Momentum: 9.0

Volatility: 9.3

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IBM

A-Score: 5.7/10

Value: 1.8

Growth: 3.0

Quality: 6.0

Yield: 6.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

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NetApp

A-Score: 5.5/10

Value: 3.4

Growth: 5.7

Quality: 7.4

Yield: 5.0

Momentum: 4.5

Volatility: 7.0

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QUALCOMM

A-Score: 5.5/10

Value: 2.5

Growth: 5.9

Quality: 7.4

Yield: 4.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

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Motorola Solutions

A-Score: 5.0/10

Value: 2.0

Growth: 6.3

Quality: 6.8

Yield: 2.0

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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HPE

A-Score: 4.6/10

Value: 4.4

Growth: 3.7

Quality: 3.2

Yield: 5.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

453.44$

Current Price

453.44$

Potential

-0.00%

Expected Cash-Flows