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Mar 29

Motorola Q1 2025 Earnings Report

Motorola Solutions reported strong Q1 2025 results with record revenue, earnings, and cash flow.

Key Takeaways

Motorola Solutions had an exceptional Q1 2025, posting record revenue of $2.5 billion and strong growth in both its product and service segments, boosted by demand in North America and strategic acquisitions.

Recorded $2.5 billion in sales, up 6% year-over-year

Net income reached $430 million with GAAP EPS of $2.53

Achieved record Q1 operating cash flow of $510 million

Acquired RapidDeploy and Theatro for $414 million combined

Total Revenue
$2.53B
Previous year: $2.39B
+5.8%
EPS
$3.18
Previous year: $2.81
+13.2%
Operating Margin
23%
Previous year: 21.7%
+6.0%
Effective Tax Rate
21%
Previous year: 57.8%
-63.7%
Backlog
$14.1B
Previous year: $14.4B
-2.1%
Gross Profit
$1.3B
Previous year: $1.19B
+9.1%
Cash and Equivalents
$1.56B
Previous year: $1.51B
+3.4%
Free Cash Flow
$473M
Previous year: $336M
+40.8%
Total Assets
$14.4B
Previous year: $13.3B
+8.3%

Motorola

Motorola

Motorola Revenue by Segment

Forward Guidance

Motorola expects 4% revenue growth in Q2 2025 and maintains full-year guidance for 5.5% revenue growth and non-GAAP EPS of $14.64–$14.74.

Positive Outlook

  • Continued strong customer demand in public safety and enterprise segments
  • Growth expected across both core product and services segments
  • Well-received AI-powered launches like Assist and SVX
  • Improved operating margin outlook due to favorable product mix
  • Operational efficiencies driving strong cash flow projections

Challenges Ahead

  • Foreign currency headwinds estimated at $40 million for FY25
  • Ongoing global supply chain volatility from new U.S. tariffs
  • Higher material costs expected throughout 2025
  • Airwave revenue remains capped by U.K. regulatory constraints
  • Legal uncertainties persist from collective proceedings in the U.K.

Revenue & Expenses

Visualization of income flow from segment revenue to net income