Motorola Solutions Reports Record Q2 Revenue and Operating Margin

Motorola Solutions reported record Q2 revenue and operating margin, driven by top-line growth and robust demand for its safety and security solutions. Revenue increased 5% YoY to $2.8 billion, with the Software and Services segment growing 15%. The company expects 7% revenue growth and EPS of $3.82-$3.87 for Q3 and increased its full-year guidance to $11.65 billion in revenue and $14.88-$14.98 EPS.

Motorola Solutions (NYSE: MSI) has reported robust financial performance for the second quarter of 2025, with record revenue and operating margin growth. The company's revenue increased by 5% year-over-year (YoY) to $2.8 billion, driven by strong demand for its safety and security solutions. The Software and Services segment experienced a 15% growth, while the Products and Systems Integration segment remained flat.

The company's operating margin expanded by 80 basis points to 29.6%, leading to record Q2 operating earnings. Operating cash flow (OCF) surged to $272 million, up $92 million YoY. This growth was primarily driven by higher earnings and improved working capital management. Motorola Solutions ended the quarter with a backlog of $14.1 billion, up $150 million YoY, driven by record Q2 orders [1].

Subsequent to the quarter, Motorola Solutions acquired Silvus Technologies for $4.4 billion in upfront consideration. The acquisition is expected to be EPS neutral for 2025 and accretive by $0.20 in 2026 [1].

Following the strong Q2 results, Motorola Solutions raised its full-year 2025 guidance. The company now expects revenue of approximately $11.65 billion, up from its prior guidance of $11.4 billion. Non-GAAP EPS is expected to be between $14.88 and $14.98, up from the prior guidance of $14.64 to $14.74 per share. The company also increased its operating cash flow expectations to $2.75 billion for the full year, inclusive of approximately $75 million of one-time transaction expenses related to the Silvus acquisition [1].

For the third quarter of 2025, Motorola Solutions provided earnings guidance of $3.820-$3.870 EPS and $3.0 billion in revenue guidance. The company expects 7% revenue growth and EPS of $3.82-$3.87 for Q3 [2].

References:
[1] https://www.motorolasolutions.com/newsroom/press-releases/motorola-solutions-reports-q2-2025-financial-results.html
[2] https://www.marketbeat.com/instant-alerts/motorola-solutions-nysemsi-releases-q3-2025-earnings-guidance-2025-08-07/