MSI

Technology

Motorola Solutions

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Market Data

Financials

XBRL · SEC EDGAR

2007–2025(19yr)

Revenue

Net Income

Free CF

Metric	FY 2007	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$36.6B	$30.1B	$22.0B	$19.3B	$8.2B	$8.7B	$8.7B	$5.9B	$5.7B	$6.0B	$6.4B	$7.3B	$7.9B	$7.4B	$8.2B	$9.1B	$10.0B	$10.8B	$11.7B	+8.0%
Gross Profit	$10.0B	$8.4B	$7.1B	$6.9B	$4.1B	$4.3B	$4.2B	$2.8B	$2.7B	$2.9B	$3.0B	$3.5B	$3.9B	$3.6B	$4.0B	$4.2B	$5.0B	$5.5B	$6.0B	+9.5%
Gross Margin	27.2%	27.8%	32.0%	35.8%	50.5%	50.0%	48.8%	48.1%	47.7%	47.5%	47.4%	47.4%	49.8%	48.7%	49.4%	46.4%	49.8%	51.0%	51.7%	+0.7pp
Operating Income	-$553.0M	-$2.4B	-$148.0M	$789.0M	$858.0M	$1.3B	$1.2B	-$1.0B	$994.0M	$1.1B	$1.3B	$1.3B	$1.6B	$1.4B	$1.7B	$1.7B	$2.3B	$2.7B	$3.0B	+11.2%
Operating Margin	-1.5%	-7.9%	-0.7%	4.1%	10.5%	14.4%	14.0%	-17.1%	17.5%	17.7%	20.1%	17.1%	20.0%	18.7%	20.4%	18.2%	23.0%	24.8%	25.6%	+0.7pp
Net Income	-$49.0M	-$4.2B	-$51.0M	$633.0M	$1.2B	$881.0M	$1.1B	$1.3B	$610.0M	$560.0M	-$155.0M	$966.0M	$868.0M	$949.0M	$1.2B	$1.4B	$1.7B	$1.6B	$2.2B	+36.6%
Net Margin	-0.1%	-14.1%	-0.2%	3.3%	14.1%	10.1%	12.6%	22.1%	10.7%	9.3%	-2.4%	13.2%	11.0%	12.8%	15.2%	15.0%	17.1%	14.6%	18.4%	+3.9pp
Free Cash Flow	$258.0M	-$262.0M	$354.0M	$1.2B	$662.0M	$881.0M	$753.0M	-$866.0M	$830.0M	$894.0M	$1.1B	$878.0M	$1.6B	$1.4B	$1.6B	$1.6B	$1.8B	$2.1B	$2.6B	+20.5%
FCF Margin	0.7%	-0.9%	1.6%	6.2%	8.1%	10.1%	8.7%	-14.7%	14.6%	14.8%	17.5%	12.0%	20.0%	18.8%	19.5%	17.2%	17.9%	19.7%	22.0%	+2.3pp
EPS (Diluted)	$-0.02	$-1.87	$-0.02	$1.87	$3.41	$2.96	$4.06	$5.29	$3.02	$3.24	$-0.95	$5.62	$4.95	$5.45	$7.17	$7.93	$9.93	$9.23	$12.75	+38.1%

Total Debt$8.4B

Cash & Equiv.$1.2B

Net Debt$7.2B

4 min read

1. THE BIG PICTURE

Motorola Solutions has moved beyond being a mere provider of two-way radios to become an indispensable "ecosystem" for global public safety. By integrating mission-critical networks with AI-driven video surveillance and command center software, Motorola Solutions has created deep structural ties with government agencies that are difficult for competitors to sever. This strategy is currently validated by a record $15.7 billion backlog, which provides high visibility into future revenue even as Motorola Solutions navigates a complex technological shift (8-K).

2. WHERE THE RISKS HIT HARDEST

Motorola Solutions’s "Integrated Ecosystem" is its primary competitive advantage, yet this strength is threatened by technological obsolescence as the market shifts toward cloud-based AI (10-K Item 1). If Motorola Solutions fails to transition its R&DR&DResearch & Development — spending on creating new products or technologies effectively, its purpose-built hardware could become a "silo" rather than a bridge, allowing cloud-native competitors to erode its market share (10-K Item 1A). Furthermore, its deep domain expertise with the U.S. government is a double-edged sword; while these long-term contracts provide stability, they are subject to "cancellation at the customer’s convenience," meaning a significant portion of its revenue remains vulnerable to sudden shifts in federal or local budgets (10-K Item 1).

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a company operating at two speeds: while total TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue grew by 8.0%, the most recent quarter saw a 12% jump to $3.4 billion (8-K, XBRL). This acceleration suggests that the "Software and Services" segment—which grew 15% in the fourth quarter—is successfully pulling the slower hardware business along with it. However, this growth comes with a heavy balance sheet; Motorola Solutions carries $8.4 billion in net debt against $2.1 billion in annual free cash flow, resulting in a 4.0x net leverage ratio (CAPM analysis).

While Motorola Solutions has "substantially mitigated" supply chain costs in 2025, its 51.4% gross margin ranks fourth among its peer group, trailing software-heavy competitors like Fortinet (81.2%) and Roper (69.0%) (8-K, XBRL). This reflects the inherent costs of maintaining a massive physical infrastructure and hardware business. Short interest remains low at 1.6% of the float, suggesting that investors are generally aligned with management’s narrative of "continued momentum" (Supplemental Signals).

4. IS IT WORTH IT AT THIS PRICE?

At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 25.6x, Motorola Solutions is trading exactly in line with the peer median of 25.4x (XBRL). According to the provided CAPM analysis, this price implies the market expects 5.9% long-term growth. This expectation seems grounded in reality, as Motorola Solutions’s TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth of 8.0% and its 2026 revenue guidance of $12.7 billion both exceed this threshold.

However, the valuation leaves little room for error regarding its debt. If growth were to slow to a GDP-pace of 2.5%, the justified multiple would drop to 13.7x, representing a nearly 46% downside (CAPM analysis). The primary risk that could trigger such a re-rating is the "intensifying competition" from players like Axon or the newly acquired Silvus, which could force Motorola Solutions to increase R&DR&DResearch & Development — spending on creating new products or technologies spending at the expense of the margins that currently support its valuation (10-K Item 1A).

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if the $15.7 billion backlog begins to stagnate or decline for two consecutive quarters, signaling that the "strong demand" cited by management is cooling (8-K).
Constructive if the Software and Services segment grows to represent a larger portion of the revenue mix, which would likely expand the 24.8% operating margin toward the 30% level seen by peers like Fortinet (XBRL).
Cautious if net leverage exceeds 4.5x, as the current $8.4 billion debt load already requires significant cash flow to service (CAPM analysis).

6. BOTTOM LINE

Structural Advantage: High switching costs driven by a 100-year history of integrated, mission-critical hardware and proprietary AI software.

Bottom Line: Motorola Solutions is a resilient, fairly valued incumbent that is successfully modernizing its portfolio, though its high debt load makes it sensitive to any disruption in its government contract pipeline.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Technological Obsolescence: The software and video security markets are shifting rapidly toward cloud solutions and AI. Motorola Solutions faces the risk that its current research and development efforts may fail to predict or meet these evolving customer preferences, potentially harming market share and results of operations.
Increased Competition: Motorola Solutions faces intensifying competition from both incumbents and emerging startups, particularly following the August 2025 acquisition of Silvus. Competitors may develop AI systems that are more cost-effective or superior to those offered by Motorola Solutions, forcing Motorola Solutions to incur higher research and development costs to remain competitive.
Strategic Acquisition Integration: Motorola Solutions relies on acquisitions to fill technology gaps. These transactions carry risks including the inability to integrate acquired businesses, potential goodwill impairments, the loss of key employees, and the possibility that acquired technologies fail to meet market needs.
Supply Chain and Component Costs: Motorola Solutions’s ability to meet customer demand depends on timely access to materials and components. Recent global supply chain constraints have increased costs, and because some components are single-sourced, Motorola Solutions may be unable to pass these price increases on to customers, negatively impacting margins.
Contractual Performance Risks: Large, multi-year system and services contracts expose Motorola Solutions to financial risks, including penalties for failing to meet performance commitments, the inability to recover front-loaded capital expenditures, and the risk of contract termination due to funding changes or customer insolvency.

2. Company-Specific Risks

Motorola Brand Licensing: Motorola Solutions does not own the "Motorola" brand; it licenses the marks from a subsidiary of Lenovo. If Motorola Solutions fails to comply with the license agreement, or if the brand is tarnished by the actions of the owner or other licensees, Motorola Solutions could lose its right to use the name, necessitating a costly and disruptive rebranding.
Pension Obligations: Motorola Solutions retains significant U.S. and non-U.S. pension liabilities from past divestitures. Poor performance in equity and debt markets, or changes in interest rates, can force Motorola Solutions to make large, unplanned cash contributions to these plans.
Outsourcing Dependencies: Motorola Solutions increasingly relies on third-party partners for IT, manufacturing, and engineering. Once an activity is outsourced, Motorola Solutions may be contractually or practically unable to bring it back in-house, leaving it vulnerable to the performance failures or unethical business practices of these partners.
AI Ethical and Accuracy Risks: As Motorola Solutions integrates generative AI into its products, it faces reputational and legal risks if the AI produces biased, inaccurate, or deficient recommendations, or if its use of the technology becomes a source of public controversy.

3. Regulatory/Legal Risks

AI and Biometric Regulation: The EU AI Act and various U.S. state laws (such as the Illinois Biometric Information Privacy Act) impose strict compliance requirements on the use of AI and facial recognition. These regulations may limit Motorola Solutions's ability to offer certain products or subject it to private rights of action and significant fines.
Data Privacy and Sovereignty: Motorola Solutions is subject to the GDPR and various "GDPR-like" state laws. Increasing trends toward data localization and restrictions on cross-border data transfers may force Motorola Solutions to alter its cloud-based service delivery models or geographical system architecture.
U.S. Government Contracting: Business with the U.S. government is subject to rigorous oversight, including audits under the Cost Accounting Standards. Noncompliance can lead to contract terminations, forfeiture of profits, or debarment from future government work.
Telecommunications Regulation: As a provider of 911 routing and other communication services, Motorola Solutions is subject to FCC and international telecommunications regulations. Failure to maintain necessary certifications or licenses could result in the loss of authority to provide these services.

4. Financial Impact Map

Technological Obsolescence → Revenue → Risk of loss of market share and future orders if new products fail to meet evolving customer preferences. Contractual Performance Risks → Operating Income → Potential for revenue reversals, customer-imposed penalties, and inability to recover front-loaded capital expenditures. Supply Chain and Component Costs → Cost of Goods Sold → Increased costs for materials and components that may not be fully offset by price increases to customers. Strategic Acquisition Integration → Goodwill / Assets → Risk of future impairments of goodwill and dilution of earnings if acquisitions fail to meet strategic objectives. Pension Obligations → Cash Flows → Potential for large, mandatory cash contributions to pension plans based on market performance and interest rate fluctuations.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-K	Feb 2026	Dec 2025
8-K	Feb 2026	—
10-Q	Oct 2025	Sep 2025
14A	Mar 2025	—