Motorola Solutions Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.54%.
Did MSI Beat Earnings? Q4 2025 Results
Motorola Solutions capped a record-setting year with a strong fourth quarter, posting non-GAAP EPS of $4.59 against a consensus estimate of $4.35 — a 5.52% beat — while revenue climbed 12.3% year-over-year to $3.38 billion, edging past the $3.34 billion Wall Street expected. The standout driver was broad-based segment strength: Products and Systems Integration grew 11% to $2.16 billion on Mission Critical Networks demand, while the faster-growing Software and Services segment rose 15% to $1.22 billion, pushing non-GAAP operating margins to 32.1% from 30.4% a year earlier. The company closed 2025 with a record backlog of $15.70 billion, underpinned by notable contract wins including a $201 million P25 services renewal in Maryland and a $162 million federal device order, signaling durable demand from public safety customers. Shareholders also received a continued $1.21 quarterly dividend, reflecting confidence in the company's cash generation. Looking ahead, Motorola guided for full-year 2026 revenue of approximately $12.70 billion and non-GAAP EPS of $16.70 to $16.85, with Q1 2026 revenue growth of 6-7% expected.
- Record backlog of $15.7 billion, up $1 billion year-over-year
- Growth in Mission Critical Networks and Video Security and Access Control in Products and Systems Integration
- Growth across all three technologies in Software and Services
- Higher sales, favorable mix and improving operating leverage drove margin expansion
- Revenue from acquisitions contributed $188 million in Q4
- Favorable foreign currency rates added $30 million in Q4
“Our outstanding 2025 performance demonstrates the resilience and strength of our business. We had record sales, earnings and cash flow. Our record backlog and strong demand gives us continued momentum for another excellent year.”
Motorola Solutions CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Motorola Solutions expects revenue growth of 6-7% compared to Q1 2025 and non-GAAP EPS of $3.20 to $3.25, assuming approximately 168 million fully diluted shares and a non-GAAP effective tax rate of approximately 20.5%. For full-year 2026, the company expects revenue of approximately $12.7 billion and non-GAAP EPS of $16.70 to $16.85, assuming approximately 168 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 an additional source of funding for federal government customers over a four-year period.
MSI YoY Financials
MSI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.