Motorola SolutionsMIL:1MSI -2.57%23 Operating Margin % is 21.41% as of Mar. 2026, which is 5% above its 10-year median of 20.38. GuruFocus rates MIL:1MSI with a GF Score™ of 23/100 and a GF Value™ of €405.75 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,472 Hardware companies, Motorola Solutions ranks better than 95.39% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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 Margin % Related Terms
Motorola Solutions Operating Margin % Historical Data
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The historical data trend for Motorola Solutions's Operating Margin % 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.
MIL:1MSI vs LITE, HPE, CIEN: Operating Margin % Comparison
For the Communication Equipment subindustry, Motorola Solutions's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Motorola Solutions Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Motorola Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Motorola Solutions's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Motorola Solutions's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (MIL:1MSI) has a Operating Margin % of 21.41% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Motorola Solutions and its competitors. This is near median its historical median of 20.38. Over the past decade, Motorola Solutions' Operating Margin % has ranged from 18.30 to 25.33. According to the industry distribution chart, Motorola Solutions ranks #114 out of 2472 companies in the Hardware industry, placing it in the top 4.6%.
Is Motorola Solutions' Operating Margin % too high?
Motorola Solutions' current Operating Margin % of 21.41% is near median its 10-year median of 20.38. Over the past 10 years, this metric has ranged from a low of 18.30 to a high of 25.33. The Hardware industry median Operating Margin % is 3.80. Motorola Solutions' value of 21.41% is 463.4% above this industry median. Based on the distribution chart, Motorola Solutions ranks #114 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Motorola Solutions has a GF Score™ of 23/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Motorola Solutions' Operating Margin % compare to LITE and HPE?
According to the Hardware industry distribution chart, Motorola Solutions ranks #114 out of 2472 companies for Operating Margin %. This places Motorola Solutions in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Motorola Solutions' value of 21.41% is 463.4% above this benchmark. Historically, Motorola Solutions' own Operating Margin % has ranged from 18.30 to 25.33 over the past decade. While the company's 10-year median is 20.38 vs. the industry median of 3.80, Motorola Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorola Solutions's current Operating Margin % of 21.41% is 463.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Motorola Solutions and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorola Solutions's current Operating Margin % is 21.41%, which is near median its own 10-year median of 20.38. 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 (MIL:1MSI) is currently considered Modestly Undervalued. The stock's GF Value™ is €405.75, compared to a current price of €345.30 — trading 14.9% below its estimated fair value. The current Operating Margin % is 21.41%, which is near median its 10-year median of 20.38 and 463.4% above the Hardware industry median of 3.80. Motorola Solutions' overall GF Score™ is 23/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Motorola Solutions (MIL:1MSI), the current Operating Margin % is 21.41% 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 (MIL:1MSI) Overvalued in 2026?
Based on GuruFocus' analysis, Motorola Solutions stock appears to be undervalued.
The current stock price of €345.30 is trading 14.9% below its estimated GF Value™ of €405.75.
GuruFocus considers Motorola Solutions to be Modestly Undervalued.
Key valuation signals for MIL:1MSI:
Operating Margin %: 21.41% (near median its 10-year median of 20.38)
GF Value™: €405.75 vs. price of €345.30 (14.9% below fair value)
Industry Position: 463.4% above the Hardware median (#114 of 2472)
No single metric tells the full story. See the MIL:1MSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
23GF Score
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