Companies /Technology

Motorola Solutions Inc

NYSE: MSI Communication Equipment
$485.30
▼ $0.70 (−0.14%) today
Markets closed · 11:53pm ET

Q2 2025 Earnings

Reported Aug 7, 2025, 4:26pm ET · SEC source
$3.57
Beat +6.21%
EPS · est. $3.36
$2.8B
Beat +1.18%
Revenue · est. $2.7B
+3.9%
Beating market
MSI vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%−2%0Aug 7Aug 8report 4:26pm ETearnings+0.9%−0.6%
−4%−2%0Aug 7Aug 8earnings+0.9%−0.6%
MSI −0.6%S&P 500 +0.9%
−4%−2%0Aug 7Aug 8report 4:26pm ETearnings+1.1%−0.6%
−4%−2%0Aug 7Aug 8earnings+1.1%−0.6%
MSI −0.6%NASDAQ +1.1%
0+3%+6%Aug 6Aug 15report 4:26pm ETearnings+1.6%+4.7%
0+3%+6%Aug 6Aug 15earnings+1.6%+4.7%
MSI +4.7%S&P 500 +1.6%
0+3%+6%Aug 6Aug 15report 4:26pm ETearnings+1.3%+4.7%
0+3%+6%Aug 6Aug 15earnings+1.3%+4.7%
MSI +4.7%NASDAQ +1.3%
+1.87%
Day of report
+1.66%
Next session
+1.52%
One week
+6.24%
30 days

S&P 500 over the same 30 days: +2.36%.

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 $3.3612 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%

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

Motorola Solutions CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, the company expects revenue growth of approximately 7% compared to Q3 2024 and non-GAAP EPS between $3.82 and $3.87, assuming approximately 169 million fully diluted shares and a non-GAAP effective tax rate of approximately 24%. For full-year 2025, the company raised guidance to revenue of approximately $11.65 billion (7.7% growth, up from prior guidance of $11.4 billion or 5.5% growth) and non-GAAP EPS of $14.88 to $14.98 (up from $14.64 to $14.74). The full-year outlook includes $185 million of expected revenue from Silvus Technologies. Operating cash flow expectations were increased to $2.75 billion for the full year, inclusive of approximately $75 million of one-time Silvus transaction expenses. The company expects increased costs on materials and components in 2025 due to the tariff environment but currently expects to substantially mitigate those impacts.

MSI YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$800.0M$1.6B$2.4B$2.6B$2.8BRevenue$1.3B$1.4BGross Profit$644.0M$692.0MOperating Income$443.0M$513.0MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

MSI Revenue by Segment

Products and Systems Integration$1.7B+0.0%
Software and Services$1.1B+15.0%

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