Motorola Solutions (MSI) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered record revenue of $2.8B, up 9% year-over-year, with strong growth in both segments and robust cash flow.

• GAAP EPS rose 22% to $3.29; non-GAAP EPS increased 17% to $3.74 year-over-year.

• Operating cash flow was $759M, up $45M year-over-year; free cash flow was $702M.

• Full-year revenue and earnings guidance raised following strong Q3 performance.

• Major contract wins included $191M LMR services award from the U.S. Navy and significant orders in both segments.

Financial highlights

• Net sales reached $2.8B, up 9% from Q3 2023, driven by North America and International growth.

• GAAP operating earnings were $711M (25.5% margin), up 11%; non-GAAP operating earnings were $830M, up 12%.

• Non-GAAP operating margin was 29.7%, up 70 bps; gross margin improved to 51.4% from 50.1% year-over-year.

• North America revenue increased 13%, international revenue up 1%.

• GAAP effective tax rate was 19.0%, down from 21.5% last year.

Outlook and guidance

• 2024 revenue growth now expected at 8.25%, up from prior 8% guidance.

• Non-GAAP EPS guidance raised to $13.63–$13.68, up from $13.22–$13.30.

• Full-year operating cash flow guidance raised to $2.3B.

• Assumes 171M diluted shares and a non-GAAP tax rate of ~22.5%.

• 2025 revenue growth expected at 5–6%, with S&S growing about 2x products and SI.