# Motorola Solutions (MSI) Sector: Public safety communications | Field | Value | |---|---| | Price | $527.97 | | Market cap | $87B | | Intrinsic value source | Analysts | | Data as of | 2026-11-10 | | Next earnings | 2027-02-10 (estimate) | Analysts: Bullish Picks: Research only Discount category: Pricey ## In short Investors pay a premium for the public safety networks, service revenue and record backlog of Motorola Solutions, and only steady growth with stable margins after its purchases can earn it. ## Themes and gap - Themes: Tariffs and trade (trade-tariffs), High debt (leverage) - Gap type: Can close (closable) - Why: The Q4 2026 report with the 2027 outlook, expected in February 2027, shows whether organic growth and margins hold after the Silvus and D-Fend purchases. ## About Motorola Solutions makes communication and security technology for public safety agencies and companies. Its three technologies are mission critical networks (land mobile radio systems and devices, and broadband products such as those of Silvus), video security and access control, and command center software for 911 centers and police. It reports two segments: Products and Systems Integration, and Software and Services. In Q3 2026, sales were $3.38 billion: mission critical networks gave $2.51 billion, video $594 million and command center $271 million. Sales were $11.68 billion in 2025. The company is based in Chicago, and Greg Brown is its chairman and chief executive officer. ## Thesis Motorola Solutions trades at a premium because investors pay for a large installed base of public safety radio networks, steady service revenue and a record backlog. Backlog reached a record $16.6 billion at the end of Q3 2026, up 14%. The non-GAAP operating margin rose to 32.5% in Q3 2026 from 30.5%, and the company raised its 2026 outlook three times, to revenue of about $13.05 billion and non-GAAP EPS of $17.94 to $17.99. For the premium to be earned, three things must be true. Organic growth must stay strong after the purchases of Silvus in 2025 and D-Fend in 2026; acquisitions added $211 million of revenue in Q3 2026. The margin must hold while memory chip and other supply costs rise. Debt of $10.1 billion must come down from free cash flow, which fell to $589 million in Q3 2026 from $733 million because of higher tax and interest payments. The premium can shrink if government budgets get smaller, if the acquired businesses grow more slowly, or if supply costs rise more. The Q4 2026 report, expected in February 2027 with the first 2027 outlook, is the next test. ## Checkpoints - Nov 4, 2026: Q3 2026 results and 2026 outlook. Status: Passed. Watch: Double-digit sales growth, a higher non-GAAP margin and a kept or higher 2026 outlook pass; a lower outlook fails. Outcome: Sales rose 12%, the non-GAAP operating margin rose to 32.5%, backlog reached a record $16.6 billion and the company raised its 2026 outlook. - Feb 10, 2027 (estimate): Q4 2026 results and 2027 outlook. Status: Pending. Watch: 2026 non-GAAP EPS of $17.94 or more, a backlog near its record and a 2027 outlook for growth in sales and EPS pass; a lower backlog or a weak outlook fail. - Jun 2027 (estimate): Close of the Bell Canada network services purchase. Status: Pending. Watch: A close in the first half of 2027, as the company expects, passes; a long delay or a block fails. ## Balance sheet - Cash: $774M - Debt: $10.1B - Net debt: $9.3B - Interest cover: 6.7× - Undrawn credit line: $2.3B, to April 2030 - Debt due within 12 months: $750M Motorola Solutions funds itself mainly with senior notes. Total debt was $10.11 billion at October 3, 2026: $750 million of short-term borrowings and $9.36 billion of long-term debt. The short-term borrowings are $200 million of commercial paper and $550 million of term loans. Cash was $774 million. A $2.25 billion unsecured revolving credit facility runs to April 2030 and backs the commercial paper program. Interest cover is operating earnings divided by net interest expense for the first nine months of 2026 ($2.11 billion against $315 million). In August 2026, the company issued $950 million of senior notes and took a new $300 million 364-day term loan for the D-Fend purchase, and it repaid $300 million of an older term loan. In Q3 2026, operating cash flow was $662 million and free cash flow was $589 million. In the same quarter, the company paid $200 million of dividends and bought back $94 million of shares. There were 165,333,940 shares outstanding on October 30, 2026. As of 2026-10-03. Sources: - https://www.sec.gov/Archives/edgar/data/68505/000006850526000044/msi-20261003.htm - https://www.sec.gov/Archives/edgar/data/68505/000006850526000041/msiq32026pressrelease.htm ## Dividends - Dividend yield: 0.9% (last 12 months, at the current price) - Paid per share, last 12 months: $4.84 (4 payments) - Current annual rate: $4.84 ($1.21 x 4 a year) - Payout ratio: 35% of the earnings of the last fiscal year (the year ended 2025-12-31) - Latest ex-dividend date: 2026-09-16, $1.21 per share - Growth over the last 5 years: 11.3% a year - Growth over the last 10 years: 11.4% a year Dividends per share by year: 2016: $1.70, 2017: $1.93, 2018: $2.13, 2019: $2.35, 2020: $2.63, 2021: $2.92, 2022: $3.25, 2023: $3.62, 2024: $4.03, 2025: $4.48. Source: company filings and market data, read on 2026-11-10. ## Recent events - 2026-11-04: Motorola Solutions reported Q3 2026 results. Sales rose 12% to $3.38 billion, and acquisitions added $211 million. GAAP EPS fell to $3.06 from $3.33, mainly because of a higher charge for the Silvus earnout, and non-GAAP EPS rose 16% to $4.69. Backlog reached a record $16.6 billion. The company raised its 2026 outlook to revenue of about $13.05 billion and non-GAAP EPS of $17.94 to $17.99, and it raised its expected operating cash flow to $3.05 billion. - 2026-09-09: The Board added $2 billion to the share buyback program. About $0.6 billion of the old authority remained at the end of Q2 2026. - 2026-08-20: Motorola Solutions completed the purchase of D-Fend Solutions, a maker of counter-drone technology, for $1.3 billion net of cash. It paid mainly with $950 million of senior notes that it issued on August 17, 2026: $350 million of 4.85% notes due 2029 and $600 million of 5.65% notes due 2036. - 2026-08-05: Motorola Solutions reported Q2 2026 results. Sales rose 13% to $3.13 billion. GAAP EPS rose 10% to $3.33 and non-GAAP EPS rose 24% to $4.41, with a benefit of $0.25 per share from refunds of IEEPA tariffs. The company agreed to buy D-Fend for $1.5 billion and raised its 2026 outlook. - 2026-05-07: Motorola Solutions reported Q1 2026 results. Sales rose 7% to $2.71 billion. GAAP EPS fell to $2.18 from $2.53, and non-GAAP EPS rose 6% to $3.37. The company bought Exacom and Hyper for a combined $90 million, and on March 26, 2026 it agreed to buy the land mobile radio network services business of Bell Canada for CAD 675 million. - 2026-02-11: Motorola Solutions reported 2025 results. Sales rose 8% to $11.68 billion, GAAP EPS was $12.75 and non-GAAP EPS was $15.38. Backlog was a record $15.7 billion. The company gave a 2026 outlook of about $12.7 billion of revenue and non-GAAP EPS of $16.70 to $16.85. ## Latest news and filings - Last earnings: 2026-11-04 (8-K: https://www.sec.gov/Archives/edgar/data/68505/000006850526000041/) - Next earnings: 2027-02-10 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-11-04 | 10-Q | Quarterly report for the period ended Oct 3, 2026 | 2026-10-03 | msi-20261003 | https://www.sec.gov/Archives/edgar/data/68505/000006850526000044/msi-20261003.htm | | 2026-11-04 | 8-K | Earnings release | | msi-20261104 | https://www.sec.gov/Archives/edgar/data/68505/000006850526000041/msi-20261104.htm | | 2026-09-09 | 8-K | Other company news | | | https://www.sec.gov/Archives/edgar/data/68505/000119312526386490/d492220d8k.htm | | 2026-08-17 | 8-K | Other company news | | | https://www.sec.gov/Archives/edgar/data/68505/000119312526354035/d143399d8k.htm | | 2026-08-05 | 10-Q | Quarterly report for the period ended Jul 4, 2026 | 2026-07-04 | msi-20260704 | https://www.sec.gov/Archives/edgar/data/68505/000006850526000028/msi-20260704.htm | | 2026-08-05 | 8-K | Earnings release | | msi-20260805 | https://www.sec.gov/Archives/edgar/data/68505/000006850526000027/msi-20260805.htm | | 2026-05-20 | 8-K | Shareholder vote results | | | https://www.sec.gov/Archives/edgar/data/68505/000119312526232694/d107048d8k.htm | | 2026-05-07 | 10-Q | Quarterly report for the period ended Apr 4, 2026 | 2026-04-04 | msi-20260404 | https://www.sec.gov/Archives/edgar/data/68505/000006850526000021/msi-20260404.htm | | 2026-05-07 | 8-K | Earnings release | | msi-20260507 | https://www.sec.gov/Archives/edgar/data/68505/000006850526000018/msi-20260507.htm | | 2026-03-12 | 8-K | Change of directors or officers | | | https://www.sec.gov/Archives/edgar/data/68505/000119312526104278/d53953d8k.htm | Every filing on SEC EDGAR (CIK 68505): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000068505&type=&dateb=&owner=include&count=40 ## Risks - Medium: Most customers are governments. Budget cuts, late grants or a long government shutdown can delay orders and payments. - Medium: Memory chip prices rose in 2026 because of demand from AI, and tariffs and export rules change often. Higher costs can lower margins on radios and video products. - Medium: The company bought Silvus for $4.4 billion in 2025 and D-Fend for $1.3 billion in 2026. If these businesses grow more slowly, the purchases can earn low returns. The Silvus sellers can earn up to $600 million more in shares through July 2028, and the company recorded charges of $178 million for this earnout in the first nine months of 2026. - Low: Debt rose to $10.11 billion at October 3, 2026 from $9.16 billion at the end of 2025. Net interest expense rose to $315 million in the first nine months of 2026 from $192 million a year earlier. ## Links - Page: https://picks.utilarium.app/company/MSI/ - History of changes: https://picks.utilarium.app/company/MSI/history/ - JSON with full history: https://picks.utilarium.app/data/company/MSI.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.