Companies /Technology

Motorola Solutions Inc

NYSE: MSI Communication Equipment
$485.30
▼ $0.70 (−0.14%) today
Markets closed · 11:54pm ET

Q1 2025 Earnings

Reported May 1, 2025, 4:12pm ET · SEC source
$3.18
Beat +5.66%
EPS · est. $3.01
$2.5B
Beat +0.42%
Revenue · est. $2.5B
−2.5%
Trailing market
MSI vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0May 1May 2report 4:12pm ETearnings+1.8%−7.6%
−8%−4%0May 1May 2earnings+1.8%−7.6%
MSI −7.6%S&P 500 +1.8%
−8%−4%0May 1May 2report 4:12pm ETearnings+2.1%−7.6%
−8%−4%0May 1May 2earnings+2.1%−7.6%
MSI −7.6%NASDAQ +2.1%
−6%−3%0+3%Apr 30May 9report 4:12pm ETearnings+1.3%−4.4%
−6%−3%0+3%Apr 30May 9earnings+1.3%−4.4%
MSI −4.4%S&P 500 +1.3%
−6%−3%0+3%Apr 30May 9report 4:12pm ETearnings+1.9%−4.4%
−6%−3%0+3%Apr 30May 9earnings+1.9%−4.4%
MSI −4.4%NASDAQ +1.9%
−7.46%
Day of report
−0.26%
Next session
+0.02%
One week
+2.70%
30 days

S&P 500 over the same 30 days: +5.15%.

Did MSI Beat Earnings? Q1 2025 Results

Motorola Solutions kicked off 2025 with a record first quarter, posting non-GAAP EPS of $3.18 — a 5.66% beat against the $3.0096 consensus — as revenue climbed 5.8% year-over-year to $2.53 billion, edging past the $2.52 billion Wall Street expected. The headline driver was a powerful combination of North American Land Mobile Radio shipments and accelerating Software and Services momentum, with the latter segment growing 9% to $982 million as Video Security, LMR services, and Command Center all contributed. Non-GAAP operating margin expanded 160 basis points to 28.3%, reflecting favorable product mix and lower direct material costs, while operating cash flow hit a Q1 record of $510 million. Management kept its full-year guidance intact, targeting approximately 5.5% revenue growth and non-GAAP EPS of $14.64 to $14.74, even as the company acknowledged tariff-related cost pressures it expects to largely offset. For Q2, Motorola guided roughly 4% revenue growth and non-GAAP EPS of $3.32 to $3.37, signaling continued confidence in its public safety technology franchise.

Key Takeaways
  • Growth in North America demand for safety and security solutions
  • Strong Land Mobile Radio Communications shipments driving Products and Systems Integration segment
  • Video Security and Access Control, LMR services, and Command Center growth driving Software and Services segment
  • Favorable mix and lower direct material costs expanding operating margins
  • Higher earnings and working capital improvements boosting operating cash flow

“Q1 was an excellent start to the year, with record first-quarter sales, operating earnings and cash flow. Our customers are continuing to prioritize investments in safety and security, which is driving our continued expectations for strong revenue, earnings and cash flow growth for the year.”

Motorola Solutions CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2025, Motorola Solutions expects revenue growth of approximately 4% year-over-year and non-GAAP EPS of $3.32 to $3.37, assuming approximately 170 million fully diluted shares and a non-GAAP effective tax rate of approximately 23.5%. Full-year 2025 guidance is maintained at approximately 5.5% revenue growth and non-GAAP EPS of $14.64 to $14.74, assuming approximately $40 million in foreign exchange headwinds, 170 million fully diluted shares, and a non-GAAP effective tax rate of approximately 23.0%. The company expects increased material and component costs in 2025 from global tariffs but currently expects to substantially mitigate those impacts.

MSI YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$700.0M$1.4B$2.1B$2.4B$2.5BRevenue$1.2B$1.3BGross Profit$519.0M$582.0MOperating Income$33.0M$430.0MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

MSI Revenue by Segment

Products and Systems Integration$1.5B+4.0%
Software and Services$982.0M+9.0%

Figures from SEC filings and company reports. Not investment advice.