Motorola Solutions, Inc. reported record fourth‑quarter and full‑year 2025 results, with Q4 revenue of $3.38 billion, up 12% year‑over‑year, and full‑year revenue of $11.68 billion, an 8% increase from 2024.
GAAP operating earnings for the quarter rose 8% to $944 million, while non‑GAAP operating earnings climbed 19% to $1.09 billion. For the full year, GAAP operating earnings were $3.0 billion, a 38% year‑over‑year gain, and non‑GAAP operating earnings reached $3.5 billion, up 11%. Operating margins expanded to a record 32.1% in Q4 and 30.3% for the year, driven by a higher mix of high‑margin software and services and improved operational leverage.
GAAP earnings per share were $3.86, and non‑GAAP EPS was $15.38. The non‑GAAP EPS beat the consensus estimate of $4.35 by $0.24, a 5.5% overrun, while revenue surpassed the $3.34 billion estimate by $0.04 billion. Management raised its outlook for 2026, projecting Q1 revenue growth of 6‑7% and non‑GAAP EPS of $3.20‑$3.25, and guiding full‑year revenue to approximately $12.7 billion with non‑GAAP EPS of $16.70‑$16.85.
The company’s backlog reached a record $15.7 billion, up $1 billion year‑over‑year, providing strong visibility into future revenue. Recent acquisitions, including Silvus Technologies for $4.4 billion and Blue Eye for $79 million, have broadened Motorola’s portfolio and contributed to the revenue growth. Continued investment in AI‑powered solutions, such as the AI Assist Suite and the SVX body‑worn assistant, is expected to drive recurring revenue and expand market share in public‑safety and enterprise security segments.
"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," said Greg Brown, Chairman and CEO. "Q4 was an exceptional quarter across the board with record revenue in both segments, record operating earnings and record operating margins. We also grew orders by 26% and ended the year with our highest ever backlog of $15.7 billion, up $1 billion year over year."
Headwinds include a projected $60 million tariff impact in the first half of 2026 and higher interest and tax rates, which partially offset EPS growth. However, the company’s cost‑control discipline, pricing power in high‑margin software and services, and operational leverage have mitigated these pressures, supporting the record margin expansion and the optimistic guidance for the coming year.
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