MSI — Motorola Solutions, Inc.
NYSE
Q4 2025 Earnings Call Summary
February 11, 2026
Summary of Motorola Solutions, Inc. Q4 2025 Earnings Call
1. Key Financial Results and Metrics
- Q4 Revenue: $3.4 billion, up 12% year-over-year, exceeding guidance.
- Full Year Revenue: $11.7 billion, an 8% increase.
- GAAP Operating Earnings: $944 million (27.9% of sales), up from 27% YoY.
- Non-GAAP Operating Earnings: $1.1 billion, up 19% YoY; non-GAAP operating margin reached a record 32.1%.
- GAAP EPS: $3.86, up from $3.56 YoY; Non-GAAP EPS: $4.59, up 14%.
- Operating Cash Flow: $1.3 billion in Q4; record $2.8 billion for the full year, a 19% increase.
- Backlog: Record $15.7 billion, up $1 billion YoY.
2. Strategic Updates and Business Highlights
- Strong Demand: Orders grew by 26% in Q4, contributing to record backlog.
- Acquisitions: $4.9 billion spent on acquisitions, including Silvus, enhancing capabilities in defense and unmanned systems.
- Product Innovations: Launched AI-powered Assist Suites for public safety, aimed at improving efficiency and reducing response times.
- Segment Performance:
- Products and SI: Q4 revenue up 11%, full-year revenue at $7.3 billion (5% increase).
- Software and Services: Q4 revenue up 15%, full-year revenue at $4.4 billion (13% increase).
- Market Position: Achieved FedRAMP approval for key products, enhancing federal market opportunities.
3. Forward Guidance and Outlook
- Q1 2026 Guidance: Expected revenue growth of 6%-7%, with non-GAAP EPS between $3.20 and $3.25.
- Full Year 2026 Guidance: Revenue projected at approximately $12.7 billion, with non-GAAP EPS between $16.70 and $16.85.
- Segment Growth Expectations: Software and Services expected to grow 10%-11%, Products and SI to grow 7%-8%.
4. Bad News, Challenges, or Points of Concern
- Tariff Headwinds: Anticipated $60 million impact from tariffs in 2026, alongside rising memory costs.
- Operational Expenses: Q4 OpEx increased by $48 million YoY, primarily due to acquisitions.
- Market Risks: Potential impacts from federal budget uncertainties and competition in the AI space.
5. Notable Q&A Insights
- Silvus Performance: Strong growth in international markets, particularly Ukraine; revenue expectations for Silvus raised to $675 million for 2026.
- Federal Market Potential: Increased traction expected in federal contracts due to recent product approvals and integrations.
- AI Solutions: Early adoption of AI Assist Suites has shown promise, with competitive pricing positioning against rivals.
- LMR Business Growth: Consistent demand noted, with expectations for continued double-digit order growth in 2026.
Overall, Motorola Solutions reported a strong Q4 and full-year performance, driven by robust demand across segments, strategic acquisitions, and innovative product launches, while also facing challenges related to tariffs and operational costs. The company remains optimistic about its growth trajectory in 2026.