Motorola Solutions (MSI) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and full-year 2025 revenue of $11.7 billion (up 8% Y/Y) and Q4 sales of $3.4 billion (up 12%), with record operating cash flow and backlog of $15.7 billion, up $1 billion year-over-year.

• Full-year GAAP EPS rose 38% to $12.75; non-GAAP EPS was $15.38, up 11%; Q4 GAAP EPS was $3.86 (up 8%), non-GAAP EPS $4.59 (up 14%).

• Strategic investments in AI, cloud, and acquisitions, including Silvus and Blue Eye, expanded the product and services portfolio and addressable markets.

• Generated record operating cash flow of $2.8 billion (up 19%) and free cash flow of $2.6 billion (up 21%).

• Major acquisitions and strong demand across all segments and regions supported robust results and positive 2026 guidance.

Financial highlights

• Q4 revenue grew 12% year-over-year to $3.38 billion, exceeding guidance, with double-digit growth in both segments and all three technologies.

• Q4 GAAP operating earnings were $944 million (27.9% margin), non-GAAP operating margin was 32.1% (up 170 bps); full-year non-GAAP margin was 30.3% (up 130 bps).

• Q4 operating cash flow was $1.26 billion; free cash flow was $1.14 billion.

• Q4 gross margin was 52.3%, up from 51.4% last year; full-year gross margin was 51.7%.

• Record ending backlog of $15.7 billion, up $1 billion year-over-year, driven by strong orders and favorable currency.

Outlook and guidance

• Q1 2026 revenue expected to grow 6–7% year-over-year; non-GAAP EPS guidance is $3.20–$3.25.

• Full-year 2026 revenue guidance is ~$12.7 billion, non-GAAP EPS $16.70–$16.85, and operating cash flow of ~$3 billion.

• Software and Services segment revenue expected to grow 10–11%; Products and SI segment 7–8%.

• Video technology revenue projected to grow 10–11%, command center 15%, and MCN 7–8%.

• Effective tax rate projected at 20.5% for Q1 and 22.5% for FY 2026.