MSI (Motorola Solutions) Operating Income: $2,945 Mil (TTM As of Mar. 2026)


MSI Motorola Solutions Inc MSI
94 GF Score
Price $422.88
GF Value $459.94
Valuation Fairly Valued
! 1 Warning Sign
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What is Motorola Solutions Operating Income?

Motorola Solutions MSI +1.36% 94 Operating Income is $2,945 Mil as of Mar. 2026. GuruFocus rates MSI with a GF Score™ of 94/100 and a GF Value™ of $459.94 (Fairly Valued). The stock has 1 warning sign investors should review.

Motorola Solutions's Operating Income for the three months ended in Mar. 2026 was $581 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $2,945 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Motorola Solutions's Operating Income for the three months ended in Mar. 2026 was $581 Mil. Motorola Solutions's Revenue for the three months ended in Mar. 2026 was $2,714 Mil. Therefore, Motorola Solutions's Operating Margin % for the quarter that ended in Mar. 2026 was 21.41%.

Good Sign:

Motorola Solutions Inc operating margin is expanding. Margin expansion is usually a good sign.

Motorola Solutions's 5-Year average Growth Rate for Operating Margin % was 6.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Motorola Solutions's annualized ROC % for the quarter that ended in Mar. 2026 was 11.59%. Motorola Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 125.60%.


Motorola Solutions  (NYSE:MSI) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Motorola Solutions's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=2324 * ( 1 - 16.55% )/( (16840 + 16613)/ 2 )
=1939.378/16726.5
=11.59 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Motorola Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2208/( ( (1746 + max(-1652, 0)) + (1770 + max(-1215, 0)) )/ 2 )
=2208/( ( 1746 + 1770 )/ 2 )
=2208/1758
=125.60 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2200 + 983 + 361) - (2327 + 2265 + 604)
=-1652

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2046 + 1181 + 437) - (2075 + 2296 + 508)
=-1215

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Motorola Solutions's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=581/2714
=21.41 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Motorola Solutions Operating Income Related Terms


Motorola Solutions Operating Income Historical Data

* Premium members only.

The historical data trend for Motorola Solutions's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Motorola Solutions Operating Income Chart

Motorola Solutions Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,717.00 1,743.00 2,359.00 2,689.00 2,959.00

Motorola Solutions Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 594.00 693.00 766.00 905.00 581.00
MSI
94GF Score
Motorola Solutions Inc MSI
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Motorola Solutions Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,945 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $2,945 Mil mean?
Motorola Solutions (MSI) has a Operating Income of $2,945 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Motorola Solutions and its competitors.
Is Motorola Solutions' Operating Income too high?
Motorola Solutions' current Operating Income is $2,945 Mil. Overall, Motorola Solutions has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Motorola Solutions' Operating Income compare to CIEN and LITE?
Motorola Solutions' Operating Income of $2,945 Mil can be compared against companies in the Hardware industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Hardware company?
A good Operating Income depends on the Hardware industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Motorola Solutions and its competitors. Motorola Solutions's current Operating Income is $2,945 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorola Solutions stock overvalued right now?
Based on GuruFocus' analysis, Motorola Solutions (MSI) is currently considered Fairly Valued. The stock's GF Value™ is $459.94, compared to a current price of $422.88 — trading 8.1% below its estimated fair value. The current Operating Income is $2,945 Mil. Motorola Solutions' overall GF Score™ is 94/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Motorola Solutions (MSI), the current Operating Income is $2,945 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Motorola Solutions (MSI) Overvalued in 2026?

Based on GuruFocus' analysis, Motorola Solutions stock appears to be undervalued. The current stock price of $422.88 is trading 8.1% below its estimated GF Value™ of $459.94. GuruFocus considers Motorola Solutions to be Fairly Valued.

Key valuation signals for MSI:

  • Operating Income: $2,945 Mil
  • GF Value™: $459.94 vs. price of $422.88 (8.1% below fair value)
  • GF Score™: 94/100 with 1 warning sign

No single metric tells the full story. See the MSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Motorola Solutions Business Description

Address 500 West Monroe Street, Suite 4400, Chicago, IL, USA, 60661
Motorola Solutions is a leading provider of communications and analytics, primarily serving public safety departments as well as schools, hospitals, and businesses. The bulk of the firm's revenue comes from sales of land mobile radios and radio network infrastructure, but the firm also sells surveillance equipment, dispatch software, and other networking capabilities. Most of Motorola's revenue comes from government agencies, while roughly 25% comes from schools and private businesses. Motorola has customers in over 100 countries and in every state in the United States.
94GF Score

Get the complete analysis for MSI

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$422.88
Price
$459.94
GF Value