Motorola Solutions Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did MSI Beat Earnings? Q3 2025 Results
Motorola Solutions capped a record third quarter with $3.01 billion in revenue — up 8% year-over-year — and non-GAAP EPS of $4.06, as broad demand for its safety and security technology portfolio drove gains across both business segments. The single biggest story of the quarter was the closing of the $4.40 billion acquisition of Silvus Technologies, a maker of advanced tactical MANET radios, which immediately contributed $123 million in revenue and landed its first $10 million NATO order, signaling early commercial traction in defense communications. Non-GAAP operating margin expanded 80 basis points to 30.5%, reflecting improved operating leverage even as tariff costs created modest headwinds. Record ending backlog of $14.60 billion, up 3% year-over-year, underscores the durability of the pipeline, and analysts tracking the broader semiconductor and communications hardware space — including <a href="https://247wallst.com/investing/2025/10/27/live-earnings-will-nxp-semiconductor-soar-after-q3-results/">adjacent chip sector earnings</a> — are watching infrastructure spending trends closely. Looking ahead, Motorola raised its full-year non-GAAP EPS guidance to $15.09–$15.15 while maintaining revenue guidance of approximately $11.65 billion.
- Growth in Mission Critical Networks (MCN) and Video Security and Access Control in Products and Systems Integration
- Growth in MCN, Command Center, and Video in Software and Services
- Revenue contribution of $123 million from acquisitions (primarily Silvus Technologies)
- Record Q3 ending backlog of $14.6 billion, up $467 million year-over-year
- Non-GAAP operating margin expanded 80 basis points to 30.5% from improved operating leverage
- Record Q3 operating cash flow of $799 million, up $40 million year-over-year
- $21 million foreign currency tailwind in the quarter
“Our Q3 was outstanding, with record third-quarter revenue, earnings and cash flow. Demand for our safety and security solutions remains robust and our Silvus acquisition is off to a strong start. As a result, we're again raising our earnings expectations for the year.”
Motorola Solutions CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, the company expects revenue growth of approximately 11% year-over-year and non-GAAP EPS of $4.30 to $4.36, assuming approximately 169 million fully diluted shares and a non-GAAP effective tax rate of approximately 24%. For full-year 2025, the company maintains revenue guidance of approximately $11.65 billion (7.7% growth) and raised non-GAAP EPS guidance to $15.09–$15.15, up from the prior $14.88–$14.98 range, assuming approximately 169 million fully diluted shares and a non-GAAP effective tax rate of approximately 22.5%. The company expects the 'One Big Beautiful Bill Act' to provide additional federal funding for border and national security over four years. A prolonged U.S. government shutdown may negatively impact federal contract shipments and fulfillment.
MSI YoY Financials
MSI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.