Core Insights - Motorola Solutions, Inc. (MSI) reported record revenues and operating earnings for Q2 2025, driven by effective operational execution and strong order trends [1][2] Financial Performance - GAAP earnings were $513 million or $3.04 per share, up from $443 million or $2.60 per share year-over-year, primarily due to top-line growth [3] - Non-GAAP earnings were $602 million or $3.57 per share, compared to $552 million or $3.24 per share in the previous year, beating the Zacks Consensus Estimate by 21 cents [3] - Quarterly net sales reached a record high of $2.76 billion, a 5% increase year-over-year, surpassing the consensus estimate of $2.74 billion [4] Revenue Breakdown - North America revenues increased by 6% to $2.03 billion, driven by growth in LMR, command center software, and video security products [5] - International revenues rose by 4% to $738 million, supported by solid LMR sales [5] - Acquisitions contributed $39 million to revenues, while foreign exchange effects added $9 million [5] Segment Performance - Products and Systems Integration net sales remained flat at $1.65 billion, with lower LMR revenues offset by increased video security product sales [6] - Software and Services net sales increased by 15% to $1.11 billion, with a backlog growth of $1 billion to $10.7 billion due to strong demand [7] Operational Metrics - GAAP operating earnings rose to $692 million from $644 million year-over-year, while non-GAAP operating earnings increased to $818 million from $758 million [8] - The company ended the quarter with a backlog of $14.1 billion, up $150 million year-over-year [8] Cash Flow and Liquidity - Motorola generated $272 million in cash from operating activities in Q2, compared to $180 million a year ago, with free cash flow at $224 million [11] - The company repurchased $218 million worth of stock during the quarter and had $3.21 billion in cash and cash equivalents as of June 30, 2025 [11] Guidance - For Q3 2025, Motorola expects non-GAAP earnings between $3.82 and $3.87 per share, with revenue growth of approximately 7% [12] - The 2025 guidance was raised, with non-GAAP earnings now expected in the range of $14.88 to $14.98 per share, reflecting a revenue growth of 7.7% to $11.65 billion [12] Future Outlook - Motorola is positioned for growth due to disciplined capital deployment and a strong balance sheet, with expectations of strong demand across various product lines [13]

Core Viewpoint - Motorola Solutions, Inc. (MSI) reported strong first-quarter 2025 results, with both net earnings and revenues exceeding Zacks Consensus Estimates, driven by effective operational execution and solid order trends [1] Financial Performance - Net earnings on a GAAP basis were $430 million or $2.53 per share, a significant improvement from a net loss of $39 million or a loss of 23 cents per share in the same quarter last year [2] - Non-GAAP earnings were $540 million or $3.18 per share, compared to $482 million or $2.81 per share in the prior year, beating the Zacks Consensus Estimate by 17 cents [3] - Quarterly net sales reached $2.52 billion, reflecting a 6% year-over-year increase, driven by growth in North America and strong demand for video security, command center software, and LMR services [3] Revenue Breakdown - North American revenues increased by 9% year over year to $1.9 billion, while international revenues decreased by 3% to $676 million [4] - Net sales from Products and Systems Integration rose to $1.54 billion, although it missed estimates of $1.56 billion, with a backlog decrease to $3.6 billion [5] - Net sales from Software and Services increased by 9% to $982 million, surpassing estimates of $946 million, with a backlog increase to $10.5 billion [6] Operating Metrics - GAAP operating earnings increased to $582 million, while non-GAAP operating earnings improved to $716 million, supported by increased sales and a favorable product mix [7] - Overall GAAP operating margin was 23%, up from 21.7%, and non-GAAP operating margin was 28.3%, compared to 26.7% in the previous year [7] Cash Flow and Liquidity - The company generated $510 million in cash from operating activities, up from $382 million a year ago, with free cash flow of $473 million [10] - As of March 31, 2025, MSI had $1.56 billion in cash and cash equivalents and $5.67 billion in long-term debt [10] Guidance - For Q2 2025, the company anticipates revenue growth of approximately 4% year over year, with non-GAAP EPS projected between $3.32 and $3.37 per share [11] - For the full year 2025, management expects non-GAAP earnings in the range of $14.64 to $14.74 per share, with revenue growth of approximately 5.5% [11]