Motorola Solutions, Inc. (MSI), headquartered in Chicago, Illinois, has long been a leader in providing mission-critical communications, advanced video security, and cutting-edge command center technologies. With a market capitalization of approximately $76.9 billion, the company designs and manufactures two-way radios, network infrastructure, video surveillance systems, analytics engines, software platforms, and offers recurring support services.
Over the last year, MSI’s stock has seen a slight decline, contrasting with a notable 11.8% gain by the S&P 500 Index ($SPX), highlighting a performance gap. However, as 2026 has unfolded, MSI’s stock has sharply rebounded, climbing 20.5%, while the broader market has experienced only modest movement.
The market, however, is grappling with concerns over AI disruption and shifting investor sentiment. Despite these factors, many remain confident in the company’s trajectory.
In comparison to the broader telecom sector, represented by the State Street SPDR S&P Telecom ETF (XTL), MSI's stock has trailed, with XTL surging 56.8% over the past 52 weeks and up 14.8% in 2026 alone.
February 12 marked a pivotal moment for Motorola Solutions. Just a day after announcing its Q4 fiscal 2025 results, the company saw its stock soar by 7.7%. The uptick followed a stronger-than-expected earnings report, with revenue growing 12.3% year-over-year to $3.38 billion, exceeding analysts' expectations of $3.34 billion. Adjusted earnings per share (EPS) also rose by 13.6%, reaching $4.59, surpassing the forecasted $4.35.
Management credited this solid performance to robust demand across both its Products and Systems Integration segment, as well as its Software and Services segment. This success points to the company’s ongoing strength and ability to navigate through a challenging market.
Looking ahead, Motorola Solutions' outlook is underpinned by a healthy backlog, an accelerating shift to cloud adoption in its Command Center software, and the rollout of new Artificial Intelligence (AI) Assist Suites for public safety agencies. For the fiscal year 2026, the company is expecting approximately $12.7 billion in revenue, with non-GAAP EPS projected between $16.70 and $16.85.
Analysts, however, are forecasting a more conservative diluted EPS of $14.76 for fiscal 2026, reflecting an 8.1% year-over-year growth. Given Motorola’s impressive track record of surpassing EPS estimates in each of the past four quarters, this forecast carries significant credibility.
Wall Street analysts are increasingly bullish on MSI stock, with an overall "Strong Buy" rating. Among the 12 analysts covering the stock, eight have issued a “Strong Buy,” one has a “Moderate Buy,” and three have a “Hold” rating. This sentiment has notably improved over the past few months, as just three months ago, only six analysts held a “Strong Buy” opinion.
Further bolstering this optimistic outlook, JPMorgan analyst Joseph Cardoso reiterated his “Overweight” rating on MSI stock, raising the price target from $515 to $520 on February 12. These price targets highlight the potential for growth, with the mean target of $499.56 suggesting an 8.2% upside from current levels. The highest target of $525 signals a potential gain of 13.7%.
As of the publication date, Aanchal Sugandh did not hold any positions in the securities mentioned. All information and data in this article are for informational purposes only.