Motorola Solutions (NYSE:MSI) Shares Gap Up After Better-Than-Expected Earnings

Motorola Solutions, Inc. (NYSE:MSI) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $421.13, but opened at $449.61. Motorola Solutions shares last traded at $465.56, with a volume of 241,369 shares trading hands.

The communications equipment provider reported $4.59 earnings per share for the quarter, beating analysts’ consensus estimates of $4.35 by $0.24. Motorola Solutions had a return on equity of 116.73% and a net margin of 18.44%.The company had revenue of $3.38 billion for the quarter, compared to analysts’ expectations of $3.34 billion. During the same quarter in the previous year, the company posted $4.04 earnings per share. The business’s revenue for the quarter was up 12.3% compared to the same quarter last year.

Motorola Solutions Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Stockholders of record on Monday, December 15th were issued a dividend of $1.21 per share. This represents a $4.84 dividend on an annualized basis and a dividend yield of 1.1%. This is a positive change from Motorola Solutions’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Monday, December 15th. Motorola Solutions’s dividend payout ratio is 38.84%.

Motorola Solutions News Roundup

Here are the key news stories impacting Motorola Solutions this week:

• Positive Sentiment: Record Q4 results — MSI beat revenue and EPS expectations, reporting $3.38B in revenue and $4.59 EPS with record margins and cash flow; management framed the quarter as evidence of business strength. Business Wire: Q4 Results
• Positive Sentiment: FY‑2026 guidance was raised materially — company now guides FY EPS to $16.70–$16.85 vs. street ~15.70 and lifted full‑year revenue targets, signaling higher-than-expected profit growth. Business Wire: Guidance
• Positive Sentiment: Backlog expansion and AI/video momentum — management emphasized AI‑driven video safety products and a growing services/backlog pipeline as multi‑year revenue drivers. Analysts cite the backlog as evidence of durable demand. Yahoo: Deep Dive on AI & Backlog
• Positive Sentiment: Analyst upgrade / price target lift — JPMorgan raised its price target (reported by Benzinga), reinforcing buy‑side confidence and implying upside to the current price. Benzinga: Price Target Raise
• Neutral Sentiment: Full earnings materials and call transcripts are available for diligence — slide deck, press release and multiple call transcripts provide detail for investors modeling margins and backlog conversion. Slide Deck / Press Release
• Negative Sentiment: Near‑term revenue guide ambiguity — Q1 EPS guidance beat the street, but Q1 revenue was guided at ~$2.7B versus some consensus nearer $2.8B, which could temper expectations for early‑year top‑line growth. Business Wire: Q1 Guidance

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the stock. Weiss Ratings lowered shares of Motorola Solutions from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday. Piper Sandler reiterated an “overweight” rating and issued a $499.00 price objective (up from $443.00) on shares of Motorola Solutions in a report on Thursday. Barclays raised their price objective on shares of Motorola Solutions from $495.00 to $506.00 and gave the company an “overweight” rating in a research note on Thursday. Morgan Stanley restated an “overweight” rating and issued a $470.00 target price on shares of Motorola Solutions in a research report on Thursday. Finally, JPMorgan Chase & Co. increased their price target on Motorola Solutions from $515.00 to $520.00 and gave the company an “overweight” rating in a research note on Thursday. Eight analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Motorola Solutions currently has a consensus rating of “Moderate Buy” and a consensus target price of $497.14.

Institutional Trading of Motorola Solutions

Hedge funds have recently modified their holdings of the business. Revolve Wealth Partners LLC purchased a new stake in Motorola Solutions in the 4th quarter worth about $208,000. Sivia Capital Partners LLC purchased a new stake in shares of Motorola Solutions in the second quarter worth approximately $210,000. Sequoia Financial Advisors LLC lifted its position in shares of Motorola Solutions by 1.1% in the second quarter. Sequoia Financial Advisors LLC now owns 6,752 shares of the communications equipment provider’s stock worth $2,839,000 after purchasing an additional 71 shares in the last quarter. RFG Advisory LLC boosted its holdings in shares of Motorola Solutions by 8.2% during the second quarter. RFG Advisory LLC now owns 766 shares of the communications equipment provider’s stock worth $322,000 after purchasing an additional 58 shares during the period. Finally, Wilmington Savings Fund Society FSB grew its position in Motorola Solutions by 6.2% during the second quarter. Wilmington Savings Fund Society FSB now owns 5,823 shares of the communications equipment provider’s stock valued at $2,448,000 after purchasing an additional 340 shares in the last quarter. Hedge funds and other institutional investors own 84.17% of the company’s stock.

Motorola Solutions Trading Up 7.8%

The company has a debt-to-equity ratio of 3.59, a quick ratio of 0.86 and a current ratio of 1.03. The stock has a market cap of $75.60 billion, a price-to-earnings ratio of 35.57, a price-to-earnings-growth ratio of 3.15 and a beta of 1.00. The company’s 50 day simple moving average is $390.28 and its two-hundred day simple moving average is $421.11.

About Motorola Solutions

Motorola Solutions, Inc is a provider of mission-critical communications and analytics solutions for public safety and commercial customers. The company designs, manufactures and supports a range of communications equipment and software aimed at enabling first responders, government agencies and enterprises to coordinate and operate reliably in high-pressure environments. Its offerings emphasize secure, resilient connectivity and situational awareness for organizations that require dependable voice, data and video communications.

Product lines include land mobile radio (LMR) systems and handheld and vehicle-mounted radios used by police, fire and emergency medical services; broadband push-to-talk and LTE-based solutions; command-and-control center software for incident management and records; and video security and analytics systems.