Motorola Solutions
MSI
$418.06
-1.14%
Motorola Solutions is a leading provider of mission-critical communications and analytics, primarily serving public safety departments, schools, hospitals, and businesses with land mobile radios, radio network infrastructure, surveillance equipment, and dispatch software. As a dominant player in the public safety communications market, the company benefits from recurring government contracts and a strong competitive moat. The current investor narrative centers on growth acceleration through acquisitions like the $1.5 billion purchase of counter-drone specialist D-Fend, margin expansion from software and services, and the stock's resilience amid broader tech volatility.…
MSI
Motorola Solutions
$418.06
Related headlines
MSI 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Motorola Solutions's 12-month outlook, with a consensus price target around $543.48 and implied upside of +30.0% versus the current price.
Average Target
$543.48
6 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
6
covering this stock
Price Range
$334 - $543
Analyst target range
Motorola Solutions is covered by 6 analysts, with a consensus leaning bullish. The average estimated EPS for the next fiscal year is $20.17, with a range of $19.92 to $20.50. The average revenue estimate is $14.42 billion. While explicit price targets are not provided, the consensus recommendation based on recent ratings is Overweight/Buy. Recent upgrades include Morgan Stanley moving from Equal Weight to Overweight in December 2025, and Piper Sandler upgrading from Neutral to Overweight in January 2026. The implied upside from current price to the average target is not calculable without explicit targets, but the bullish sentiment suggests analysts see further upside. The range of EPS estimates is narrow (low $19.92, high $20.50), indicating high conviction among analysts. The high estimate assumes continued margin expansion and revenue growth from acquisitions, while the low estimate may reflect concerns about integration risks or government budget constraints. The recent acquisition of D-Fend for $1.5 billion adds uncertainty but is viewed positively by the market.
MSI Technical Analysis
Motorola Solutions is in a sustained uptrend over the past year, with a 1-year price change of +123.53%. The current price of $422.88 sits at 85.9% of its 52-week range ($359.36 low to $492.22 high), indicating the stock is trading near the upper end of its range but not at overbought extremes. This positioning suggests bullish momentum but with room for further upside if catalysts materialize. Short-term momentum shows mixed signals: the 1-month price change is +2.73%, while the 3-month change is -2.49%, indicating a recent pullback from the February highs near $492. The 1-month relative strength vs. SPY is -1.34%, underperforming the broader market. This divergence between the strong 1-year trend and recent weakness could signal a temporary consolidation phase rather than a trend reversal, especially given the stock's beta of 0.885, which is lower than the market, implying less volatility. The 52-week high of $492.22 represents key resistance; a breakout above this level would signal renewed bullish momentum and potentially target new highs. The 52-week low of $359.36 provides strong support, and a breakdown below this level would be a bearish signal. With a beta of 0.885, the stock is about 11.5% less volatile than the S&P 500, making it a relatively defensive holding within the technology sector.
Beta
0.89
0.89x market volatility
Max Drawdown
-25.8%
Largest decline past year
52-Week Range
$359-$492
Price range past year
Annual Return
+0.5%
Cumulative gain past year
| Period | MSI Return | S&P 500 |
|---|---|---|
| 1m | +1.4% | +1.0% |
| 3m | -5.0% | +7.9% |
| 6m | +7.4% | +8.5% |
| 1y | +0.5% | +20.1% |
| ytd | +9.7% | +9.9% |
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MSI Fundamental Analysis
Motorola Solutions' revenue trajectory is solidly growing, with Q4 2025 revenue of $3.38 billion, up 12.26% year-over-year from $3.011 billion in Q4 2024. The multi-quarter trend shows accelerating growth: Q1 2025 revenue was $2.528 billion, Q2 $2.765 billion, Q3 $3.009 billion, and Q4 $3.38 billion, indicating sequential acceleration. Revenue is split between products ($2.038 billion) and services ($1.342 billion), with services providing recurring, high-margin income. The growth is driven by government spending on public safety and the acquisition of D-Fend, which adds counter-drone capabilities. The company is highly profitable, with Q4 2025 net income of $649 million and a net margin of 19.2%. Gross margin was 48.7% in Q4 2025, slightly down from 51.4% in Q4 2024, but operating margin improved to 26.0% from 27.0% a year ago, reflecting operating leverage. The trailing twelve-month free cash flow is $2.572 billion, providing ample liquidity. However, the debt-to-equity ratio is high at 4.05, and the current ratio is 1.04, indicating tight liquidity. ROE is an impressive 89.4%, but this is inflated by high leverage. The company generates strong cash flow, with operating cash flow of $1.256 billion in Q4 2025, easily covering capital expenditures of $114 million and dividends of $182 million.
Quarterly Revenue
$3.4B
2025-12
Revenue YoY Growth
+12.3%
YoY Comparison
Gross Margin
48.7%
Latest Quarter
Free Cash Flow
$2.6B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is MSI Overvalued?
Since net income is positive ($649 million in Q4 2025), the primary valuation metric is the P/E ratio. The trailing P/E is 29.65x, while the forward P/E is 22.83x, implying the market expects earnings growth of about 30% over the next year. The gap between trailing and forward P/E suggests the market is pricing in significant earnings acceleration. Compared to the Communication Equipment industry average P/E of approximately 22x (based on sector data), Motorola Solutions trades at a 35% premium on a trailing basis. This premium is justified by its dominant market position, high margins, and consistent growth. Historically, the stock's trailing P/E has ranged from about 18x to 45x over the past five years. The current 29.65x is near the middle of this range, suggesting the stock is fairly valued relative to its own history. The PEG ratio of 0.81 indicates the stock is undervalued relative to its growth rate, supporting a bullish view.
PE
29.6x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -378x~44x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
20.5x
Enterprise Value Multiple

