Motorola Solutions (MSI) delivered a better-than-expected Q2, driven by continued outperformance from Silvus Technologies in defense markets and a surprise return to growth in its Land Mobile Radio business, Morgan Stanley said Thursday in a report.
LMR, the core public-safety radio systems business, had been expected to return to growth only in H2, supported by stronger bookings, the report said. Motorola raised its full-year outlook for Silvus revenue to $850 million from $750 million, implying 50% annual growth, Morgan Stanley said.
"We walked away encouraged, particularly with memory overhang more known for now," the report said.
Morgan Stanley raised its 2026 revenue growth forecast to 11% from 10%, reflecting management's expectation for a stronger Q4 driven by D-Series infrastructure launches, higher device shipments, and increased demand for public safety LMR products.
Silvus is also expected to remain a key growth driver, supported by strong international defense demand, expanded sales capacity, and market-share gains, the report said.
Morgan Stanley raised its price target on Motorola Solutions stock to $476 from $470 and maintained its overweight rating.
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