Motorola Solutions (MSI) MSI Q4 Financial Results Summary
QuoteReporter
Motorola Solutions (MSI) Q4 2025 Financial Results Summary
Release Date: February 11, 2026
Motorola Solutions, Inc. (NYSE: MSI) reported its financial results for the fourth quarter and full year of 2025, revealing strong growth in key metrics, driven by robust demand across its product and service segments.
Key Financial Results
- Sales:
- Q4 2025: $3.38 billion, up 12% from Q4 2024 ($3.01 billion).
-
Full Year 2025: $11.68 billion, up 8% from 2024 ($10.82 billion).
-
Earnings Per Share (EPS):
- GAAP Q4 2025: $3.86, up 8% from Q4 2024 ($3.56).
- Non-GAAP Q4 2025: $4.59, up 14% from Q4 2024 ($4.04).
- Full Year 2025 GAAP EPS: $12.75, up 38% from 2024 ($9.23).
-
Full Year 2025 Non-GAAP EPS: $15.38, up 11% from 2024 ($13.84).
-
Operating Cash Flow:
- Q4 2025: $1.3 billion, up 19% from Q4 2024 ($1.1 billion).
-
Full Year 2025: $2.8 billion, reflecting continued strong cash generation.
-
Share Repurchase and Dividends:
- In Q4 2025, Motorola Solutions repurchased $490 million of shares and paid $182 million in dividends.
-
Total share repurchases for the full year amounted to $1.2 billion.
-
Operating Earnings:
- GAAP Q4 2025: $944 million, and 27.9% of sales (up from 27.0% in Q4 2024).
- Non-GAAP Q4 2025: $1.086 billion, or 32.1% of sales (up from 30.4% in Q4 2024).
Segment Performance
- Products and Systems Integration:
- Q4 2025 sales: $2.16 billion, up 11% from Q4 2024 ($1.95 billion).
- GAAP operating earnings: $588 million, 27.2% of sales (down from 27.8% in Q4 2024).
-
Non-GAAP operating earnings: $667 million, 30.9% of sales (up from 30.5% in Q4 2024).
-
Software and Services:
- Q4 2025 sales: $1.22 billion, up 15% from Q4 2024 ($1.06 billion).
- GAAP operating earnings: $356 million, 29.1% of sales (up from 25.7% in Q4 2024).
- Non-GAAP operating earnings: $419 million, 34.3% of sales (up from 30.3% in Q4 2024).
Operational Highlights
- Ending Backlog:
-
Q4 2025 backlog reached a record $15.7 billion, increasing by $1 billion compared to the previous year, driven by increased orders.
-
Market Dynamics:
- The company is observing strong growth in its markets, with particularly significant performance noted in both its Products and Systems Integration as well as Software and Services segments.
Business Outlook
- First-quarter 2026 Guidance:
- Revenue growth is expected to be between 6% and 7% compared to the first quarter of 2025.
-
Non-GAAP EPS anticipated in the range of $3.20 to $3.25.
-
Full-year 2026 Forecast:
- Projected revenue around $12.7 billion, with non-GAAP EPS anticipated in the range of $16.70 to $16.85.
Macroeconomic Environment
- The company is navigating a complex global trade environment and remains vigilant regarding the impacts of tariffs and trade regulations on its operations and costs.
- Changes in government policy, such as the “One Big Beautiful Bill Act”, are expected to provide additional funding to federal customers.
Conclusion
Motorola Solutions closed 2025 with robust performance across key financial metrics, demonstrating resilience amid challenging economic conditions. The company’s strong finishing quarter positions it well for continued growth in 2026, supported by a solid backlog and strategic investments.
| Fourth Quarter | Full Year | |||||
|---|---|---|---|---|---|---|
| Q4 2025 | Q4 2024 | % Change | 2025 | 2024 | % Change | |
| Net sales from products | $2,038 | $1,815 | $6,770 | $6,454 | ||
| Net sales from services | $1,342 | $1,195 | $4,912 | $4,363 | ||
| Net sales | $3,380 | $3,010 | $11,682 | $10,817 | ||
| Costs of products sales | $828 | $733 | $2,776 | $2,674 | ||
| Costs of services sales | $784 | $729 | $2,871 | $2,631 | ||
| Costs of sales | $1,612 | $1,462 | $5,647 | $5,305 | ||
| Gross margin | $1,768 | $1,548 | $6,035 | $5,512 | ||
| Selling, general and administrative expenses | $499 | $487 | $1,870 | $1,752 | ||
| Research and development expenditures | $270 | $246 | $970 | $917 | ||
| Other charges | -$37 | -$38 | -$27 | $3 | ||
| Intangibles amortization | $92 | $39 | $234 | $152 | ||
| Operating earnings | $944 | $814 | $2,988 | $2,688 | ||
| Other income (expense): | ||||||
| Interest expense, net | -$110 | -$56 | -$302 | -$227 | ||
| Other, net | $27 | $29 | $126 | -$489 | ||
| Total other expense | -$83 | -$27 | -$176 | -$716 | ||
| Net earnings before income taxes | $861 | $787 | $2,812 | $1,972 | ||
| Income tax expense | $211 | $175 | $652 | $390 | ||
| Net earnings | $650 | $612 | $2,160 | $1,582 | ||
| Less: Earnings attributable to | $1 | $1 | $6 | $5 | ||
| noncontrolling interests | ||||||
| Net earnings attributable to Motorola Solutions, Inc. | $649 | $611 | $2,154 | $1,577 | ||
| Earnings per common share: | ||||||
| Basic | $3.90 | $3.66 | $12.93 | $9.45 | ||
| Diluted | $3.86 | $3.56 | $12.75 | $9.23 | ||
| Weighted average common shares outstanding | ||||||
| Basic | 166.2 | 167.1 | 166.6 | 166.8 | ||
| Diluted | 168.1 | 171.4 | 169.0 | 170.8 |
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $1,165 | $2,102 |
| Accounts receivable, net | $2,200 | $1,952 |
| Contract assets | $1,574 | $1,230 |
| Inventories, net | $983 | $766 |
| Other current assets | $378 | $429 |
| Total current assets | $6,300 | $6,479 |
| Property, plant and equipment, net | $1,165 | $1,022 |
| Operating lease assets | $581 | $529 |
| Investments | $187 | $135 |
| Deferred income taxes | $761 | $1,280 |
| Goodwill | $6,800 | $3,526 |
| Intangible assets, net | $3,104 | $1,249 |
| Other assets | $491 | $375 |
| Total assets | $19,389 | $14,595 |
| Liabilities and Stockholders’ Equity | ||
| Current portion of long-term debt | $— | $322 |
| Short-term borrowings | $749 | $— |
| Accounts payable | $1,134 | $1,018 |
| Contract liabilities | $2,265 | $2,072 |
| Accrued liabilities | $1,930 | $1,643 |
| Total current liabilities | $6,078 | $5,055 |
| Long-term debt | $8,413 | $5,675 |
| Operating lease liabilities | $471 | $427 |
| Other liabilities | $2,000 | $1,719 |
| Total Motorola Solutions, Inc. stockholders’ equity | $2,410 | $1,703 |
| Noncontrolling interests | $17 | $16 |
| Total liabilities and stockholders’ equity | $19,389 | $14,595 |