Motorola Solutions, Inc (NYSE:MSI) stock is trading lower Friday after the company released its quarterly results on Thursday.
The company reported first-quarter revenue growth of 6% year-on-year to $2.53 billion, beating the analyst consensus estimate of $2.52 billion.
Adjusted EPS of $3.18 beat the analyst consensus estimate of $3.01.
Also Read: Motorola Just Launched Something That Could Change How First Responders Use AI
The topline was driven by growth in North America, partially offset by a decline internationally due to foreign currency headwinds and lower Ukraine revenue.
Products and Systems Integration sales grew by 4%.
Software and Services sales increased by 9%.
The adjusted operating margin was 28.3%, up 160 basis points, driven by higher sales, a favorable mix, and lower direct material costs, partially offset by acquisitions.
The company ended the quarter with a backlog of $14.1 billion, down 2% Y/Y. It also generated an operating cash flow of $510 million during the quarter compared to $382 million Y/Y.
Motorola Solutions expects increased costs on materials and components in 2025 due to the Trump administration’s tariff policies.
Outlook: Motorola Solutions expects second-quarter revenue growth of approximately 4% Y/Y or $2.73 billion (versus analyst consensus estimate of $2.77 billion) and adjusted EPS of $3.32-$3.37 (versus analyst consensus estimate of $3.47).
The company reiterated fiscal 2025 revenue growth of approximately 5.5% Y/Y or $11.41 billion (compared to the analyst consensus estimate of $11.43 billion) and adjusted EPS of $14.64-$14.74 (compared to the analyst consensus estimate of $14.72).
Price Action: MSI stock is down 8.20% at $403.40 at last check Friday.
Read Next:
Image: Shutterstock
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.