Motorola Solutions (MSI) posted standout earnings growth of 35.6%, significantly outpacing its 5-year average of 15.1% per year. Profit margins climbed to 18.7% from last year’s 14.7%, and while earnings and revenue are forecast to rise at 9.09% and 6.8% per year respectively, both figures trail the broader US market averages. For investors, the improving margins and steady growth profile make the latest results look constructive, especially with shares trading below analyst price targets and no major risks flagged in the recent report.
See our full analysis for Motorola Solutions.
The real challenge now is to see how these fresh numbers stack up against the market’s widely followed narratives. Some long-held assumptions may get reinforced, while others could face a reality check.
See what the community is saying about Motorola Solutions
NYSE:MSI Earnings & Revenue History as at Nov 2025
Analysts expect profit margins to climb from 19.1% today to 20.2% in 3 years, highlighting the impact of a growing mix of high-margin software and managed services.
Consensus narrative highlights how recurring software and services, such as command center and video solutions, are driving operating leverage and more resilient earnings growth.
The company’s record multi-year contract wins and expanding backlog lend visibility to these projections. This reinforces the claim that a focus on integrated smart technologies is underpinning durable margin expansion.
High attachment rates on new hardware and international deployments of SaaS/cloud applications are expected to further accelerate the shift toward more stable, recurring revenue streams.
The balance between recurring revenue growth and increased visibility into future cash flows has become a key underpinning of the analysts’ consensus view on margins and earnings durability.
📊 Read the full Motorola Solutions Consensus Narrative.
Revenue is forecast to grow at 6.8% annually, which is slower than the US market average of 10.3%, but sustained by major contract wins and structural sector tailwinds.
Consensus narrative notes that while rising demand for advanced public safety tech and upgrades in core infrastructure are boosting Motorola’s backlog, several headwinds could still impact growth.
Competition from large tech and defense firms targeting cloud video and unmanned systems could pressure pricing and future earnings, as the narrative points to an increasingly crowded playing field.
Reliance on government contracts exposes Motorola to potential volatility, given these contracts depend on government budgets and shifting policy priorities.
Shares trade at $406.71, which is about 18% below the analyst price target of $497.89, reflecting some market skepticism relative to analysts’ optimism on future earnings and margin potential.
According to the analysts’ consensus view, for Motorola’s valuation to be fully justified, investors must believe earnings will reach $2.8 billion and revenue $13.8 billion by 2028, supporting a 38x PE. This is well above the US Communications industry current PE of 27.2x.
This premium assumes ongoing margin progression and an accelerating revenue mix shift. The relatively narrow price target gap suggests consensus sees the stock as fairly valued at current levels.
Investors are encouraged to compare these targets against their own outlook for the sustainability of margin growth and ongoing demand from public sector customers.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Motorola Solutions on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
Spot an alternative trend in the numbers? Take just a few minutes to shape your personal take on Motorola’s story and Do it your way.
A great starting point for your Motorola Solutions research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
Despite expanding margins, Motorola’s growth is projected to lag the broader market and faces pressure from stiff competition and reliance on government contracts.
If you want steadier growth and fewer market headwinds, check out stable growth stocks screener (2102 results) for companies consistently delivering reliable earnings and sales through changing conditions.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include MSI.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
