We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Motorola Surpasses Q3 Earnings Estimates on Healthy Revenue Growth
Read MoreHide Full Article
Key Takeaways
Motorola's Q3 revenue rose 8% year over year to $3.01B, surpassing estimates.
Strong demand in video security, command software, and LMR services drove growth.
Q4 EPS is projected at $4.30$4.36, with full-year earnings guidance raised to $15.09$15.15.
Motorola Solutions, Inc. (MSI - Free Report) reported strong third-quarter 2025 results with a healthy year-over-year increase in revenues and operating earnings, driven by the diligent execution of operational plans and robust growth dynamics backed by solid order trends.
Adjusted earnings and revenues topped the respective Zacks Consensus Estimate. In addition, Motorola ended the quarter with solid operating cash flow, which further exemplified the strength of its portfolio. The company expects this momentum to continue in the near term on healthy demand patterns and accretive acquisitions.
Net Earnings
On a GAAP basis, Motorola reported GAAP earnings of $562 million or $3.33 per share compared with $562 million or $3.29 per share in the year-earlier quarter. Excluding non-recurring items, non-GAAP earnings in the quarter were $686 million or $4.06 per share compared with $639 million or $3.74 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 21 cents.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Quarterly net sales were $3.01 billion, up 8% year over year. Solid sales in both segments across all regions were driven by the strength of the company's business model and the value of its mission-critical integrated ecosystem. The company witnessed strong demand for video security, command center software and LMR (land mobile radio) services. The top line beat the consensus estimate of $2.99 billion.
Region-wise, quarterly revenues increased 6% in North America to $2.12 billion, driven by growth in LMR, command center software and video security products. International revenues increased 13% to $888 million, driven by solid LMR sales. Acquisitions contributed $123 million to revenues, while foreign exchange tailwinds were $21 million.
Segmental Performance
Net sales from Products and Systems Integration were $1.9 billion (up 6% year over year) with an increase in video security products and mission-critical networks (MCN). The segment’s backlog was down $604 million to $3.6 billion, primarily due to solid MCN shipments.
Net sales from Software and Services were up 11% to $1.11 billion, with solid performance across command center software, MSN, LMR and video security services. The segment’s backlog increased $1.1 billion to $11 billion, led by strong demand across all three technologies.
Other Quarterly Details
GAAP operating earnings increased to $770 million from $711 million in the prior-year quarter, while non-GAAP operating earnings were up to $918 million from $830 million. The company ended the third quarter with a backlog of $14.6 billion, up $467 million year over year on record orders.
Overall, GAAP operating margin was 25.6%, up from 25.5%, while non-GAAP operating margin was 30.5% compared with 29.7% in the year-ago quarter. Non-GAAP operating earnings for Products and Systems Integration increased to $555 million from $522 million for a margin of 29.3%. Non-GAAP operating earnings for Software and Services were $363 million, up from $308 million, for a non-GAAP operating margin of 32.6% due to the higher sales and improved operating leverage.
Cash Flow and Liquidity
Motorola generated $799 million in cash from operating activities in the reported quarter compared with $759 million a year ago, bringing the respective tallies for the first nine months of 2025 and 2024 to $1.58 billion and $1.32 billion. Free cash flow in the third quarter was $733 million. The company repurchased $121 million worth of stock during the quarter. As of Sept. 27, 2025, MSI had $894 million of cash and cash equivalents with $8.41 billion of long-term debt.
Guidance
For fourth-quarter 2025, Motorola expects non-GAAP earnings in the range of $4.30 to $4.36 per share on revenue growth of approximately 11%.
With solid quarterly results and robust demand patterns, the company raised its guidance for 2025. It currently expects non-GAAP earnings for 2025 in the $15.09-$15.15 per share range, up from $14.88-$14.98 on revenue growth of 7.7% or $11.65 billion, with a rise in both segments on higher demand.
Moving Forward
Motorola is poised to gain from disciplined capital deployment and a strong balance sheet position. The company expects strong demand across LMR products, the video security portfolio, services and software while benefiting from a solid foundation.
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying a growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Motorola Surpasses Q3 Earnings Estimates on Healthy Revenue Growth
Key Takeaways
Motorola Solutions, Inc. (MSI - Free Report) reported strong third-quarter 2025 results with a healthy year-over-year increase in revenues and operating earnings, driven by the diligent execution of operational plans and robust growth dynamics backed by solid order trends.
Adjusted earnings and revenues topped the respective Zacks Consensus Estimate. In addition, Motorola ended the quarter with solid operating cash flow, which further exemplified the strength of its portfolio. The company expects this momentum to continue in the near term on healthy demand patterns and accretive acquisitions.
Net Earnings
On a GAAP basis, Motorola reported GAAP earnings of $562 million or $3.33 per share compared with $562 million or $3.29 per share in the year-earlier quarter. Excluding non-recurring items, non-GAAP earnings in the quarter were $686 million or $4.06 per share compared with $639 million or $3.74 per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 21 cents.
Motorola Solutions, Inc. Price, Consensus and EPS Surprise
Motorola Solutions, Inc. price-consensus-eps-surprise-chart | Motorola Solutions, Inc. Quote
Revenues
Quarterly net sales were $3.01 billion, up 8% year over year. Solid sales in both segments across all regions were driven by the strength of the company's business model and the value of its mission-critical integrated ecosystem. The company witnessed strong demand for video security, command center software and LMR (land mobile radio) services. The top line beat the consensus estimate of $2.99 billion.
Region-wise, quarterly revenues increased 6% in North America to $2.12 billion, driven by growth in LMR, command center software and video security products. International revenues increased 13% to $888 million, driven by solid LMR sales. Acquisitions contributed $123 million to revenues, while foreign exchange tailwinds were $21 million.
Segmental Performance
Net sales from Products and Systems Integration were $1.9 billion (up 6% year over year) with an increase in video security products and mission-critical networks (MCN). The segment’s backlog was down $604 million to $3.6 billion, primarily due to solid MCN shipments.
Net sales from Software and Services were up 11% to $1.11 billion, with solid performance across command center software, MSN, LMR and video security services. The segment’s backlog increased $1.1 billion to $11 billion, led by strong demand across all three technologies.
Other Quarterly Details
GAAP operating earnings increased to $770 million from $711 million in the prior-year quarter, while non-GAAP operating earnings were up to $918 million from $830 million. The company ended the third quarter with a backlog of $14.6 billion, up $467 million year over year on record orders.
Overall, GAAP operating margin was 25.6%, up from 25.5%, while non-GAAP operating margin was 30.5% compared with 29.7% in the year-ago quarter. Non-GAAP operating earnings for Products and Systems Integration increased to $555 million from $522 million for a margin of 29.3%. Non-GAAP operating earnings for Software and Services were $363 million, up from $308 million, for a non-GAAP operating margin of 32.6% due to the higher sales and improved operating leverage.
Cash Flow and Liquidity
Motorola generated $799 million in cash from operating activities in the reported quarter compared with $759 million a year ago, bringing the respective tallies for the first nine months of 2025 and 2024 to $1.58 billion and $1.32 billion. Free cash flow in the third quarter was $733 million. The company repurchased $121 million worth of stock during the quarter. As of Sept. 27, 2025, MSI had $894 million of cash and cash equivalents with $8.41 billion of long-term debt.
Guidance
For fourth-quarter 2025, Motorola expects non-GAAP earnings in the range of $4.30 to $4.36 per share on revenue growth of approximately 11%.
With solid quarterly results and robust demand patterns, the company raised its guidance for 2025. It currently expects non-GAAP earnings for 2025 in the $15.09-$15.15 per share range, up from $14.88-$14.98 on revenue growth of 7.7% or $11.65 billion, with a rise in both segments on higher demand.
Moving Forward
Motorola is poised to gain from disciplined capital deployment and a strong balance sheet position. The company expects strong demand across LMR products, the video security portfolio, services and software while benefiting from a solid foundation.
Motorola currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks Inc. (ANET - Free Report) is scheduled to release third-quarter 2025 earnings on Nov. 5. The Zacks Consensus Estimate for earnings is pegged at 72 cents per share, suggesting a growth of 20% from the year-ago reported figure.
Arista has a long-term earnings growth expectation of 18.7%. Arista delivered an average earnings surprise of 12.8% in the last four reported quarters.
Akamai Technologies, Inc. (AKAM - Free Report) is slated to release third-quarter 2025 earnings on Nov. 6. The Zacks Consensus Estimate for earnings is pegged at $1.64 per share, indicating a 3.1% growth from the year-ago reported figure.
Akamai has a long-term earnings growth expectation of 4.9%. Akamai delivered an average earnings surprise of 7.1% in the last four reported quarters.
Pinterest, Inc. (PINS - Free Report) is set to release third-quarter 2025 earnings on Nov. 4. The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, implying a growth of 5% from the year-ago reported figure.
Pinterest has a long-term earnings growth expectation of 33.9%. Pinterest delivered an average negative earnings surprise of 1.1% in the last four reported quarters.