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what it is
It sells the radios, software, and networks police, firefighters, utilities, and hospitals use when downtime is unacceptable.
how it gets paid
Last year Motorola Solu made $11.7B in revenue.
why it's growing
Revenue grew 8.0% last year. In response, management raised its 2026 silvus revenue target to $675 million, $75 million above its prior estimate, citing strong demand from ukraine, unmanned systems.
what just happened
Motorola posted a December-quarter EPS of $4.59, beating the $4.34 estimate and helping erase the fall slowdown narrative.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
100/100 earnings predictability — you can trust these numbers
30.2x trailing p/e — you're paying up for this one
1.2% dividend yield — cash in your pocket every quarter
30.5% return on capital — every dollar works hard here
xvary composite: 76/100 — average
What they do
It sells the radios, software, and networks police, firefighters, utilities, and hospitals use when downtime is unacceptable.
If your city runs dispatch on Motorola, switching is painful because the system sits inside daily emergency response. North America is 72% of sales, which tells you this company is deeply wired into big public-safety budgets. Operating margin → money left after operating costs → so what: Motorola keeps 33 cents of every sales dollar, which is what pricing power looks like.
How they make money
$11.7B
annual revenue · their business grew +8.0% last year
total revenue
$11.7B
+8.0%
The products that matter
mission-critical radios, networks, and software
Mission-Critical Communications
$11.7B revenue · full business
this is the entire company as shown in the data: $11.7B of revenue, 8.0% growth last year, and a business model strong enough to convert that into a 22.4% net margin.
core
video security and software layer
software and workflows
not broken out here
the page does not split revenue by segment. That matters because software usually deserves the premium multiple. Until you see the mix, you are underwriting the whole $11.7B as one blended business.
data gap
long-cycle government contracts
public safety budgets
drives demand
when 100% of reported revenue sits under one umbrella, budget timing matters. The upside is sticky demand. The downside is that a freeze in agency spending can hit the full $11.7B revenue base.
watch list
Key numbers
33.0%
operating margin
Operating margin → money left after operating costs → so what: MSI keeps 33 cents of every sales dollar before interest and taxes.
30.5%
return on capital
Return on capital → profit earned on the money put into the business → so what: this company turns every $1 invested into about 31 cents of operating return.
100
earnings predictability
Earnings predictability → how consistent profits have been historically → so what: Motorola has been unusually steady for a hardware-linked business.
72%
North America sales
This concentration is a strength and a risk. It anchors demand in one core market, but it also ties a lot of revenue to one budget environment.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 95 / 100
- long-term debt $8.4B (10% of capital)
- net profit margin 21.9% — keeps 22 cents of every dollar in revenue
- return on equity 66% — $0.66 profit for every $1 investors have put in
B++ with risk rank and net profit margin standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in MSI 3 years ago → it's now worth $18,210.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Motorola posted a December-quarter EPS of $4.59, beating the $4.34 estimate and helping erase the fall slowdown narrative.
Value Line says December-quarter revenue rose 12% to $3.4B, with double-digit gains across both segments, and management raised the 2026 Silvus target to $675M from $600M. An EDGAR snippet lists a latest quarter at $8.3B revenue and $8.89 EPS, but that conflicts with the company release and consensus figures tied to the reported quarter.
$3.4B
revenue
$4.59
eps
51.4%
gross margin
the number that mattered
The $75M increase in the 2026 Silvus target mattered most because it is management admitting demand came in better than its own prior plan.
-
motorola solutions entered 2026 with momentum.
-
a record-breaking december quarter erased the cautious sentiment that had weighed on the stock for much of the fall.
-
revenue grew 12% to $3.4 billion, with double-digit gains across both segments.the adjusted operating margin expanded by 170 basis points, driven by a richer mix of software and services. the silvus tactical communications unit, acquired last august, contributed to the upside.
-
in response, management raised its 2026 silvus revenue target to $675 million, $75 million above its prior estimate, citing strong demand from ukraine, unmanned systems integrators, and nato partners more broadly.
-
that said, the company expects a $60 million tariff drag concentrated in the first half.
source: company earnings report, 2026
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What could go wrong
the #1 risk is airwave legal and regulatory pressure.
high
airwave-related legal and regulatory exposure
The pending 2025 Airwave case in the UK is the specific overhang named on this page. A bad outcome would not be theoretical — it could mean cash penalties, pricing pressure, or tighter oversight.
A legal loss would hit profit directly. With a 22.4% net margin, there is plenty to defend.
high
public sector budget freezes
The company sells into agencies and institutions that budget in cycles, not impulses. When those budgets stall, sales cycles stretch and large network decisions can slide.
This matters because 100% of the reported $11.7B revenue base depends on that broader spending environment.
med
premium multiple risk
A 30.2x trailing P/E works when investors trust the compounding story. If growth cools toward the 1% EPS pace seen last quarter, the valuation stops looking generous and starts looking demanding.
Even without a collapse in the business, the stock can de-rate if execution stays good instead of great.
a legal hit would pressure the 22.4% margin, and a budget slowdown can touch the full $11.7B revenue base at the same time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
whether revenue really gets to $13B
That is the FY2026 estimate on the page. If the company lands well short, the premium multiple has less to stand on.
calendar
next earnings report
You want to see whether EPS growth improves from the latest 1% pace and whether guidance still supports the $18.15 FY2027 EPS view.
risk
airwave and other contract scrutiny
Any sign of a worse legal or regulatory outcome would matter more than another polished product presentation.
trend
institutional flow
483 buyers versus 567 sellers in 4q2025 is not a disaster, but you would rather see that flow improve than deteriorate.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still like the stock.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. not risk-free, just sturdier than most.
chart momentum
bottom 5%
technical score 5 is the weakest reading here. The business looks steady. The chart does not.
earnings predictability
100 / 100
management has been exceptionally consistent. The quiet part: that reliability is part of why investors tolerate a premium multiple.
source: institutional data
Institutional activity
483 buyers vs. 567 sellers in 4q2025. total institutional holdings: 0.1B shares.
source: institutional data
Price targets
3-5 year target range
$404
$769
$465
current price
$587
target midpoint · +26% from current · 3-5yr high: $660 (+40% · 10% ann'l return)
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