Motorola Solutions' Q2 2025: Unpacking Contradictions in Tariffs, Sales Strategy, and Revenue Growth

Tariff impact and operating margin expansion, sales strategy and integration of acquisitions, video revenue growth and cloud migration, operating margin expansion and impact of tariffs are the key contradictions discussed in Motorola Solutions' latest 2025Q2 earnings call.



Strong Revenue and Earnings Growth:
- Motorola Solutions reported record revenue growth of 5% in Q2, with 15% growth in software and services.
- The growth was driven by strong customer demand across all areas of the business and investments in public safety and security.

Record Order Backlog and Product Backlog:
- Motorola Solutions ended the quarter with over $14.1 billion in backlog, including $10.7 billion of software and services backlog, up $1 billion versus last year.
- The record Q2 orders, up 27%, were attributed to a significant increase in LMR product sales and strong demand for multiyear contracts in software and services.

Silvus Acquisition Impact:
- The acquisition of Silvus is expected to contribute $185 million in revenue for the remaining 5 months of the year, with Silvus being slightly dilutive for EPS in Q3.
- The acquisition is strategic, as Silvus complements Motorola's leadership in LMR and video technologies and enhances its presence in defense and unmanned systems.

Operating Margin Expansion:
- Motorola Solutions achieved an 80 basis point increase in non-GAAP operating margin, reaching 29.6%, driven by higher sales and improved operating leverage.
- The expansion was supported by core business improvements and additions from the Silvus acquisition.