It's been a good week for Motorola Solutions, Inc. (NYSE:MSI) shareholders, because the company has just released its latest yearly results, and the shares gained 9.3% to US$462. It was a credible result overall, with revenues of US$12b and statutory earnings per share of US$12.75 both in line with analyst estimates, showing that Motorola Solutions is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the current consensus from Motorola Solutions' eleven analysts is for revenues of US$12.7b in 2026. This would reflect a meaningful 8.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 5.8% to US$13.76. In the lead-up to this report, the analysts had been modelling revenues of US$12.6b and earnings per share (EPS) of US$13.42 in 2026. So the consensus seems to have become somewhat more optimistic on Motorola Solutions' earnings potential following these results.

There's been no major changes to the consensus price target of US$497, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Motorola Solutions analyst has a price target of US$525 per share, while the most pessimistic values it at US$450. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Motorola Solutions'historical trends, as the 8.7% annualised revenue growth to the end of 2026 is roughly in line with the 9.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Motorola Solutions is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Motorola Solutions following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$497, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Motorola Solutions analysts - going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.