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    Stronger Q3 Earnings and ESOP Shelf Registration Might Change The Case For Investing In Motorola Solutions (MSI)

    Simply Wall St·01/04/2026 20:28:19
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    • In early January 2026, Motorola Solutions, Inc. filed a shelf registration for US$306.66 million to offer 800,000 common shares tied to its employee stock ownership plan, shortly after reporting third-quarter 2025 revenue of US$3.01 billion, up 7.8% year on year, and non-GAAP earnings of US$4.06 per share that exceeded analyst expectations.
    • This combination of an employee-focused equity program and better-than-expected earnings underlines how Motorola Solutions is using strong public safety technology demand and profitability to support long-term capital and workforce plans.
    • We will now examine how Motorola Solutions’ stronger-than-expected third-quarter earnings update may influence its investment narrative built around recurring revenue growth.

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    Motorola Solutions Investment Narrative Recap

    To own Motorola Solutions, you need to believe its push into higher margin, recurring public safety software and services can offset any long term pressure on legacy radio systems and government budget cycles. The stronger than expected Q3 2025 earnings support that thesis near term, while the new US$306.66 million ESOP related shelf registration looks more like routine capital access than a material change to immediate catalysts or risks.

    Among recent announcements, the December 2025 integration of Android Emergency Live Video into Motorola’s VESTA 911 platforms stands out as closely tied to the recurring revenue story. It reinforces how new software features can deepen relationships with public safety agencies, potentially supporting contract renewals and attachment of additional services, even as investors weigh ongoing risks around government funding timing and competition in cloud video and AI solutions.

    However, against this constructive backdrop, the heavy reliance on multi year U.S. government contracts means investors should still be aware of how...

    Read the full narrative on Motorola Solutions (it's free!)

    Motorola Solutions' narrative projects $13.8 billion revenue and $2.8 billion earnings by 2028. This requires 7.5% yearly revenue growth and a roughly $0.7 billion earnings increase from $2.1 billion today.

    Uncover how Motorola Solutions' forecasts yield a $493.60 fair value, a 30% upside to its current price.

    Exploring Other Perspectives

    MSI 1-Year Stock Price Chart
    MSI 1-Year Stock Price Chart

    Four members of the Simply Wall St Community currently estimate Motorola Solutions’ fair value between US$372.10 and US$493.60, illustrating how far personal views can spread. You should weigh those ranges against the key risk that public sector budget cycles and funding delays can disrupt near term revenues and reshape expectations for the company’s recurring growth story.

    Explore 4 other fair value estimates on Motorola Solutions - why the stock might be worth just $372.10!

    Build Your Own Motorola Solutions Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.