Motorola Solutions ($MSI) Crushes Q2 Earnings – Lifts Full-Year Guidance as Demand Surges

Another quarter, another beat—Motorola Solutions ($MSI) just flexed its dominance in mission-critical communications. Wall Street’s lowball estimates? Obliterated. The company’s raised outlook? A not-so-subtle middle finger to macroeconomic doomsayers.

The Numbers Don’t Lie

No need to regurgitate the earnings figures—suffice to say MSI’s execution is tighter than a first responder’s radio protocol. Public safety tech spending remains bulletproof, and Motorola’s riding that wave like a proprietary algorithm trading on insider intel (allegedly).

Guidance Upgrade: Confidence or Desperation?

Raising full-year targets in this market takes either brass-plated confidence or a CFO praying the backlog holds. Given MSI’s sticky government contracts, bet on the former—though we’ve seen bigger companies flinch at softer headwinds.

Another boring, cash-printing quarter for Motorola Solutions. Meanwhile, growth stocks are still trying to convince investors that ‘adjusted EBITDA’ isn’t just fantasy math.

TLDR

• Q2 2025 EPS at $3.57 beats analyst estimates of $3.35
• Revenue climbs 5.2% year-over-year to $2.77B, above consensus
• GAAP net income rises to $513M from $443M last year
• Backlog reaches $14.1B on record orders
• FY25 revenue guidance raised to $11.65B, EPS outlook boosted

Motorola Solutions, Inc. (NYSE: MSI) traded at $454.32, up $9.22 or +2.07% as of 12:53 PM EDT on August 8, 2025, after reporting robust second-quarter results that exceeded market expectations and set new company records.

Motorola Solutions, Inc. (MSI)

Strong Q2 2025 Earnings Performance

For the quarter ended June 30, 2025, Motorola posted adjusted earnings of $3.57 per share, surpassing the average analyst estimate of $3.35 and improving from $3.24 in the same quarter last year. GAAP earnings stood at $3.04 per share, up from $2.60 a year earlier, reflecting a GAAP net income of $513 million versus $443 million last year.

On a non-GAAP basis, net income reached $602 million, compared with $552 million in the prior-year quarter.

Motorola Solutions, $MSI, Q2-25. Results:

📊 Adj. EPS: $3.57 🟢
💰 Revenue: $2.77B 🟢
📈 Net Income: $513M
🔎 Record Q2 revenue and earnings driven by strong demand in Software & Services and robust order backlog. pic.twitter.com/dCJsOsatLN

— EarningsTime (@Earnings_Time) August 7, 2025

Revenue Growth Across Segments and Regions

Quarterly net sales hit a record $2.77 billion, up 5.2% from $2.63 billion a year ago, and above the consensus estimate of $2.73 billion. North America revenues grew 6% to $2.03 billion, while international revenues ROSE 4% to $738 million. Acquisitions added $39 million, and foreign exchange tailwinds contributed $9 million.

The Products and Systems Integration segment posted flat sales at $1.65 billion as lower land mobile radio (LMR) revenues were offset by stronger video security demand. Software and Services sales rose 15% to $1.11 billion, benefiting from growth in command center software, LMR, and video security services.

Margins, Backlog, and Cash Flow

GAAP operating earnings increased to $692 million from $644 million, while non-GAAP operating earnings rose to $818 million from $758 million. The company’s backlog reached $14.1 billion, up $150 million year-over-year.

Operating margins improved, with GAAP at 25% and non-GAAP at 29.6%. Free cash FLOW came in at $224 million for the quarter, with operating cash flow at $272 million, up from $180 million a year earlier.

Motorola repurchased $218 million in stock during the quarter and closed with $3.21 billion in cash against $7.66 billion in long-term debt.

Upgraded Outlook for FY25

For Q3 2025, the company expects non-GAAP EPS between $3.82 and $3.87 on approximately 7% revenue growth. Full-year 2025 guidance now calls for revenue of $11.65 billion (up from $11.4 billion) and non-GAAP EPS in the range of $14.88 to $14.98 per share (up from $14.64 to $14.74).

Stock Performance Overview

As of August 8, 2025, MSI shares were down 1.19% year-to-date but up 11.31% over the past year. Longer-term returns remain robust, with 3-year gains of 89.51% and 5-year returns of 235.62%, far outpacing the S&P 500 over the same periods.