Motorola Solutions Q2 EPS Jumps 10%, Revenue Sets New Record

Motorola Solutions (MSI) Q2 EPS jumps 10% to $3.57, surpassing estimates by $0.22. Revenue climbs 5% YoY to $2.77 billion, exceeding consensus forecasts. The Software and Services segment posted a 15% increase in revenue, while the Products and Systems Integration segment remained flat and saw declining backlog. The company raised its full-year 2025 non-GAAP outlook, driven by ongoing strength in its Software and Services segment and disciplined cost and supply chain management.

Motorola Solutions, Inc. (MSI) reported a strong second quarter (Q2) 2025, with earnings per share (EPS) increasing by 10% to $3.57, surpassing estimates by $0.22. The company's revenue climbed 5% year-over-year (YoY) to $2.77 billion, exceeding consensus forecasts. The Software and Services segment posted a 15% increase in revenue, while the Products and Systems Integration segment remained flat and saw declining backlog [1].

The company's full-year 2025 non-GAAP outlook was raised, driven by ongoing strength in its Software and Services segment and disciplined cost and supply chain management. Management highlighted the launch of the SVX device, a first-of-its-kind video remote P25 speaker mic that converts to secure voice, video, and AI, and eliminates the need for a separate body-worn camera. The device has received strong customer feedback and has over 30 agency orders since its launch [2].

Motorola Solutions also reported record Q2 orders and a backlog exceeding $14.1 billion, with the software and services backlog at $10.7 billion, the highest ever and up $1 billion versus last year. The company's operating cash flow for the first half reached $783 million, up 39% year-over-year. GAAP operating earnings were $692 million, and non-GAAP operating earnings were $818 million with a 29.6% non-GAAP operating margin, up 80 basis points. GAAP EPS was $3.04, and non-GAAP EPS was $3.57. Q2 operating cash flow was $272 million, and free cash flow was $224 million [2].

Notable orders included an $82 million P25 system upgrade for Tri-County, a $44 million command center order, and a $12 million LMR cybersecurity order in Australia. The company's strategic investments in AI, video, and unmanned systems, highlighted by the Silvus acquisition, position it for further expansion across public safety and defense markets [2].

References:
[1] https://www.marketscreener.com/news/motorola-solutions-q2-non-gaap-eps-sales-increase-2025-guidance-boosted-ce7c5edcd980fe25
[2] https://seekingalpha.com/news/4482159-motorola-solutions-raises-full-year-outlook-to-11_65b-revenue-and-14_98-eps-while-expanding