Investing.com -- Motorola Solutions, Inc. (NYSE:MSI) reported better-than-expected first quarter earnings and revenue, but shares tumbled 3.5% as the company’s second quarter guidance fell short of analyst estimates.
The communications equipment maker posted adjusted earnings per share of $3.18 for Q1, surpassing the analyst consensus of $3.01. Revenue rose 6% YoY to $2.53 billion, slightly above expectations of $2.52 billion.
However, Motorola Solutions provided weaker-than-anticipated guidance for the current quarter, projecting Q2 EPS of $3.32-$3.37, below the $3.48 consensus estimate. This outlook overshadowed the Q1 beat and drove the stock lower in after-hours trading.
"Q1 was an excellent start to the year, with record first-quarter sales, operating earnings and cash flow," said CEO Greg Brown. He noted customers are continuing to prioritize investments in safety and security.
The company’s Products and Systems Integration segment saw sales increase 4% YoY to $1.55 billion. Software and Services revenue grew 9% to $982 million.
For the full year 2025, Motorola Solutions maintained its previous guidance for approximately 5.5% revenue growth and adjusted EPS of $14.64-$14.74, in line with analyst expectations of $14.72.
The company generated record Q1 operating cash flow of $510 million, up $128 million from the prior year. It also completed two acquisitions in its Command Center business for a combined $414 million.
Despite the Q1 outperformance, the soft Q2 outlook appears to have dampened investor enthusiasm, as reflected in the stock’s after-hours decline.
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