- Motorola Solutions reported a strong second quarter with adjusted earnings per share (EPS) of $3.57, surpassing last year’s $3.24 and beating the estimate of $3.36.
- Net sales rose by 5.2% year-over-year to $2.77 billion, exceeding the expected $2.73 billion.
- The Products and Systems Integration Segment saw a slight decrease in sales to $1.65 billion, slightly below the $1.69 billion estimate.
- The Software and Services Segment experienced a significant sales increase of 15% year-over-year, reaching $1.11 billion and surpassing the estimate of $1.05 billion.
- Gross margin was reported at 51.1%, a slight improvement from last year’s 51%, though just shy of the 51.3% estimate.
- Adjusted operating income grew by 7.9% year-over-year to $818 million, above the projected $782.1 million.
- The adjusted operating margin increased to 29.6% from 28.8% the previous year, exceeding the estimated 28.5%.
- Free cash flow more than doubled to $224 million, compared to $112 million in the same period last year, though below the anticipated $560.1 million.
- The company expects $185 million in full-year revenue from Silvus.
- For the third quarter of 2025, Motorola Solutions anticipates approximately 7% revenue growth compared to the third quarter of 2024, with non-GAAP EPS projected between $3.82 and $3.87 per share.
- The stock has garnered positive sentiment, with analysts giving 10 buys, 4 holds, and no sell recommendations.
Motorola Solutions on Smartkarma
Analysts at Baptista Research are closely following Motorola Solutions on Smartkarma, providing in-depth insights into the company’s strategic moves and financial performance. In a bullish stance, Baptista Research highlights Motorola Solutions‘ significant acquisition of Silvus Technologies for $4.4 billion, marking a shift towards high-bandwidth communications beyond traditional mission-critical voice services. Silvus’ battle-proven technology in decentralized communications is seen as a strategic asset for Motorola Solutions, particularly in supporting video, sensors, and autonomous systems in challenging environments.
Furthermore, Baptista Research applauds Motorola Solutions‘ robust financial performance, with strong growth reported across all key segments in the first quarter of 2025. The company achieved record revenues, operating earnings, and cash flow, surpassing revenue guidance with notable growth in software and services as well as products and systems integration. This positive momentum aligns with the analysts’ bullish outlook, especially considering Motorola Solutions‘ success in driving growth through video, command center technologies, and strategic defense contracts.
A look at Motorola Solutions Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
In assessing the long-term outlook for Motorola Solutions, the Smartkarma Smart Scores reveal a solid overall picture. With a growth score of 4 and momentum score of 4, the company seems positioned for strong expansion and market performance. The resilience score of 3 indicates a moderate ability to weather challenges, while both the value and dividend scores stand at 2, suggesting room for improvement in these areas.
Summary: Motorola Solutions, Inc. is a provider of data communications and telecommunications equipment. Their product range includes data capture, wireless infrastructure, bar code scanning, two-way radios, and wireless broadband networks, catering to public safety, government, voice and data communications, and wireless LAN security sectors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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