Motorola Solutions

MSI Q2 2025 Earnings

Reported Aug 7, 2025 at 4:26 PM ET · SEC Source

Q2 25 EPS

$3.57

BEAT +6.21%

Est. $3.36

Q2 25 Revenue

$2.77B

BEAT +1.18%

Est. $2.73B

vs S&P Since Q2 25

-27.7%

TRAILING MARKET

MSI -12.6% vs S&P +15.1%

Market Reaction

Did MSI Beat Earnings? Q2 2025 Results

Motorola Solutions posted a strong second quarter, with non-GAAP earnings of $3.57 per share coming in 6.21% ahead of the $3.36 consensus estimate, while revenue climbed 5.2% year-over-year to $2.77 billion, edging past the $2.73 billion Wall Street … Read more Motorola Solutions posted a strong second quarter, with non-GAAP earnings of $3.57 per share coming in 6.21% ahead of the $3.36 consensus estimate, while revenue climbed 5.2% year-over-year to $2.77 billion, edging past the $2.73 billion Wall Street had expected. The standout driver was the Software and Services segment, which surged 15% to $1.11 billion on broad strength in Land Mobile Radio, Video Security and Access Control, and Command Center technologies, a mix that also helped expand non-GAAP operating margin by 80 basis points to 29.6%. Free cash flow doubled to $224 million, and the company closed the quarter with a record backlog of $14.10 billion. The most consequential development, however, came just after quarter-end: the $4.40 billion acquisition of Silvus Technologies, which prompted management to raise full-year revenue guidance to approximately $11.65 billion and lift non-GAAP EPS guidance to $14.88–$14.98. Some analysts have flagged the stock's premium valuation as a risk, but the raised outlook, including $185 million in expected Silvus revenue for the remainder of 2025, suggests management sees the growth runway as intact.

Key Takeaways

  • Software and Services segment grew 15%, driven by growth in LMR, Video Security and Access Control, and Command Center
  • Record Q2 orders driving backlog of $14.1 billion
  • Higher earnings and improved working capital drove operating cash flow increase of $92 million year-over-year
  • Improved operating leverage driving GAAP operating margin expansion to 25.0% from 24.5%
  • Non-GAAP operating margin expanded 80 basis points to 29.6%
  • Revenue from acquisitions contributed $39 million; foreign currency tailwinds of $9 million
  • Organic revenue growth of 4%
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MSI YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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MSI Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Q2 was outstanding, with record second-quarter revenue and earnings.”

— Greg Brown, Q2 2025 Earnings Press Release