Stock Analysis

Stock Analysis · Motorola Solutions Inc (MSI)

Overview

Motorola Solutions Inc. (MSI) provides mission-critical communications and software used mainly by public safety agencies (such as police, fire, and emergency medical services) and by commercial customers that need reliable, secure operations. Its products and services are designed to help coordinate people in the field, manage incidents, and improve safety and situational awareness.

The company’s business is commonly described around two main revenue streams:

Products and Systems: Land mobile radio (LMR) devices and infrastructure, plus related hardware that supports secure voice communications.
Software and Services: Recurring revenue from software (including command center and video security offerings) and services such as maintenance, support, and managed services.

Motorola Solutions’ filings typically emphasize a mix of hardware (often more cyclical) and a growing base of software and services (often more recurring). Exact percentages can vary by year and are detailed in the company’s annual report segment disclosures.

Across recent years, total revenue increased from about $8.2B (2021) to about $10.8B (2024). Over the same period, gross profit also rose (about $4.0B to about $5.5B). Operating income stayed in a relatively tight range (roughly $1.8B–$2.3B), while interest expense increased by 2024 (about $295M), which can matter more in a higher-rate environment.

Key Figures

Metric	Value	Industry ⓘ
Date	Feb 07, 2026
Context
Sector	Technology
Industry	Communication Equipment
Market Cap ⓘ	$70.34B
Beta ⓘ	1.00
Fundamental
P/E Ratio ⓘ	33.91	39.43
Profit Margin ⓘ	18.70%	4.65%
Revenue Growth ⓘ	7.80%	14.10%
Debt to Equity ⓘ	426.99%	59.08%
PEG ⓘ	1.56
Free Cash Flow ⓘ	$2.41B

Motorola Solutions has a market capitalization of about $70.3B and a beta close to 1.0, which indicates its share price has tended to move broadly in line with the overall market. The company’s P/E ratio is 33.91, below the industry median of 39.43 in this peer set. Profitability stands out: the net profit margin is about 18.7% versus an industry median of about 4.65%. Year-over-year revenue growth is about 7.8%, which is below the industry median of about 14.1%. Leverage is a key differentiator: debt-to-equity is about 427% versus an industry median of about 59%. Trailing twelve-month free cash flow is about $2.41B, and the PEG ratio shown is ~1.56.

Growth (Medium)

Motorola Solutions operates in markets tied to public safety and critical infrastructure communications. Demand in these areas is often influenced by multi-year government budgeting cycles, ongoing maintenance needs, and long replacement timelines for core networks. This can create a steadier demand profile than consumer electronics, although it can also limit how fast the overall market expands.

A central growth driver in the company’s stated strategy is shifting more of the business toward software and services, which typically come with longer customer relationships and recurring revenue characteristics (maintenance, subscriptions, managed services). In addition, integrated offerings that connect radios, dispatch/command software, and video/security workflows can deepen customer reliance on a single platform, supporting longer-term retention.

Recent year-over-year revenue growth has generally been positive but moderate, with growth rates moving mostly in the mid-single digits to low-double digits and settling near ~5%–10% in the most recent periods shown (latest about 7.8%). This pattern is consistent with a business that benefits from ongoing upgrades and services, but is not purely “high growth.”

Free cash flow expanded meaningfully over the period shown, rising from about $1.45B (2021) to roughly $2.27B (2025 March quarter trailing period shown), with the latest trailing value around $2.41B. For long-term business quality, sustained free cash flow matters because it can support reinvestment, acquisitions, debt service, and shareholder returns (all subject to management decisions and conditions).