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Core Insights - The company achieved record revenue and operating margins in Q4, with a 26% increase in orders and a backlog of $15.7 billion, up $1 billion year-over-year [2][16] - Full-year revenue increased by 8% and EPS by 11%, marking the fifth consecutive year of double-digit EPS growth [2][8] - The company expects continued strong revenue and earnings growth in 2026, driven by a robust backlog and strong demand [1][18] Financial Performance - Q4 revenue grew by 12%, exceeding guidance, with double-digit growth across all segments and technologies [5] - GAAP operating earnings were $944 million, representing 27.9% of sales, an increase from 27% in the previous year [6] - Non-GAAP operating earnings reached $1.1 billion, up 19% year-over-year, with a record non-GAAP operating margin of 32.1%, up 170 basis points [6][8] Cash Flow and Capital Allocation - The company generated record operating cash flow of $2.8 billion for the full year, up 19% year-over-year, and free cash flow of $2.6 billion, up 21% [10] - Capital allocation included $4.9 billion in acquisitions, $1.2 billion in share repurchases, and $728 million in cash dividends [11] - The board approved an 11% increase in dividends, marking the fourteenth consecutive year of double-digit increases [11] Segment Performance - In the Products and SI segment, Q4 sales increased by 11%, with operating earnings of $667 million, or 30.9% of sales [12] - The Software and Services segment saw Q4 revenue up 15%, with operating earnings of $419 million and margins of 34.3% [14] - For the full year, Software and Services revenue was $4.4 billion, up 13%, with operating earnings of $1.4 billion, or 32.5% of sales [15] Backlog and Orders - The ending backlog for Q4 was a record $15.7 billion, driven by strong orders in both segments [16][17] - The company expects double-digit product orders in Q1 and for the full year in 2026, indicating strong demand [50] Outlook and Growth Expectations - The company anticipates Q1 sales growth of 6%-7% and non-GAAP EPS between $3.20 and $3.25 [17] - For the full year, revenue is expected to be approximately $12.7 billion, with non-GAAP EPS between $16.70 and $16.85 [18] - Segment growth expectations include 10%-11% growth in Software and Services and 7%-8% in Products and SI [19] AI and Product Innovations - The company launched its first AI-powered Assist Suites aimed at enhancing public safety operations, priced at $99 per user per month [20][22] - The Assist Suites are designed to improve efficiency in emergency response, with capabilities for transcription, translation, and incident management [23][62] - The company is focused on integrating AI across its product offerings to enhance operational efficiency and situational awareness for first responders [79][80]

Core Insights - Motorola (MSI) reported quarterly earnings of $4.59 per share, exceeding the Zacks Consensus Estimate of $4.36 per share, and showing an increase from $4.04 per share a year ago, resulting in an earnings surprise of +5.40% [1] - The company achieved revenues of $3.38 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.09% and up from $3.01 billion year-over-year [2] - Motorola has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Motorola's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $3.18 on revenues of $2.75 billion, and for the current fiscal year, it is $16.19 on revenues of $12.59 billion [7] Industry Context - The Wireless Equipment industry, to which Motorola belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - Q4 revenue grew by 12%, exceeding guidance, with double-digit growth in both segments and all three technologies [9] - Full-year revenue reached $11.7 billion, an 8% increase, with GAAP EPS at $12.75, up 38% from the previous year [11] - Operating cash flow for Q4 was $1.3 billion, compared to $1.1 billion in the prior year, and full-year operating cash flow was a record $2.8 billion, up 19% year-over-year [12] Business Line Data and Key Metrics Changes - In the Products and SI segment, Q4 sales increased by 11%, with operating earnings at $667 million, or 30.9% of sales, up from 30.5% in the prior year [13] - Software and Services segment saw Q4 revenue up 15%, with operating margins at 34.3%, up from 30.3% last year [16] - Full-year revenue for Software and Services was $4.4 billion, up 13%, with operating earnings at $1.4 billion, or 32.5% of sales [17] Market Data and Key Metrics Changes - North America revenue for Q4 was $2.4 billion, up 7%, while international revenue was $1 billion, up 26% [17] - Full-year international revenue was $3.3 billion, up 11%, with strong growth in both segments and double-digit growth in all three technologies [17] Company Strategy and Development Direction - The company plans to leverage its record backlog of $15.7 billion and strong demand environment for continued growth in 2026 [8] - The introduction of AI-powered Assist Suites aims to enhance public safety operations and is expected to drive recurring revenue growth [20][21] - The company is focused on expanding its product and services portfolio, particularly in the defense and unmanned systems market following the acquisition of Silvus [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for integrated mission-critical technologies, highlighting the importance of safety and security for public safety and defense customers [26] - The company anticipates continued strong cash conversion and expects approximately $3 billion in operating cash flow for 2026 [19] - Management noted that the effective tax rate for 2026 is expected to be approximately 22.5% [19] Other Important Information - The company achieved record operating cash flow and free cash flow for the year, with significant capital allocation towards acquisitions and shareholder returns [12] - The board approved an 11% increase in dividends, marking the 14th consecutive year of double-digit increases [12] Q&A Session Summary Question: Update on Silvus and its growth potential - Management reported strong performance from Silvus, raising revenue expectations for 2026 to $675 million, driven by demand in Ukraine and unmanned systems [30][31] Question: Outlook for margins in 2026 - Management expects operating margin expansion of 100 basis points in 2026, despite anticipated tariff headwinds [36][37] Question: Acceleration in the command business and outlook for the 911 market - The command center business saw 15% growth last year, with expectations for similar growth this year, supported by the uptake of APX NEXT applications [44] Question: Insights on the Assist Suites and future product introductions - Management indicated a rapid cadence of new product launches, with plans to expand capabilities within the dispatcher and responder suites [67][70] Question: Silvus's potential in public safety and commercial markets - Management acknowledged that while Silvus primarily focuses on defense, there are incremental opportunities in public safety and commercial markets [75]

Financial Data and Key Metrics Changes - Q4 revenue grew by 12%, exceeding guidance, with double-digit growth in both segments and all three technologies [9] - Full-year revenue for 2025 was $11.7 billion, up 8%, with GAAP EPS at $12.75, a 38% increase from the prior year [11] - Operating cash flow for Q4 was $1.3 billion, compared to $1.1 billion in the prior year, and full-year operating cash flow reached a record $2.8 billion, up 19% [12] Business Line Data and Key Metrics Changes - In the Products and SI segment, Q4 sales increased by 11%, with operating earnings at $667 million, or 30.9% of sales [13] - Software and Services segment revenue rose by 15% in Q4, with operating margins at 34.3%, up from 30.3% the previous year [16] - Full-year revenue for Software and Services was $4.4 billion, up 13%, with operating earnings at $1.4 billion, or 32.5% of sales [17] Market Data and Key Metrics Changes - North America revenue for Q4 was $2.4 billion, up 7%, while international revenue was $1 billion, up 26% [17] - Full-year international revenue was $3.3 billion, up 11%, with growth in both segments and double-digit growth in all three technologies [17] Company Strategy and Development Direction - The company aims for continued strong revenue and cash flow growth in 2026, supported by a record backlog of $15.7 billion and strong demand [7][18] - The introduction of AI-powered Assist Suites is expected to drive recurring revenue growth and expand the software total addressable market (TAM) [20][24] - Significant investments in AI and cloud-native solutions are being made to enhance public safety offerings and improve operational efficiencies [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the company's ability to execute on key product initiatives [21] - The company anticipates revenue growth in the Software and Services segment of 10%-11% and 7%-8% in the Products and SI segment for 2026 [19][20] - Management highlighted the importance of integrating AI into workflows to improve efficiency and situational awareness for public safety personnel [24][90] Other Important Information - The company achieved record operating cash flow and free cash flow, marking the third consecutive year of double-digit cash flow growth [12] - Capital allocation for 2025 included $4.9 billion for acquisitions, $1.2 billion for share repurchases, and an 11% increase in dividends [12] Q&A Session Summary Question: Update on Silvus and its growth potential - Management reported strong performance from Silvus, with expectations for $675 million in revenue for 2026, driven by demand in defense and unmanned systems [30][31] Question: Outlook for margins in 2026 - Management expects operating margin expansion of 100 basis points in 2026, despite tariff headwinds, driven by customer adoption of feature-rich devices [36][37] Question: Acceleration in the command business and 911 market outlook - The Command Center segment saw 19% growth in Q4, supported by the uptake of APEX Next applications, with expectations for continued strong growth [40][41] Question: Insights on backlog and product orders - Management expressed confidence in maintaining double-digit product orders and expects product backlog to increase in 2026 [51][52] Question: Early adoption of AI solutions and competition - Management highlighted successful early adoption of AI capabilities, emphasizing the integration of applications across workflows to enhance efficiency [89][90]

Financial Data and Key Metrics Changes - Q4 2025 was exceptional with record revenue in both segments, record operating earnings, and record operating margins, with orders growing by 26% and a backlog of $15.7 billion, up $1 billion year-over-year [5][7] - Full-year revenue increased by 8%, with EPS up by 11%, marking the fifth consecutive year of double-digit EPS growth, and operating cash flow reached a record $2.8 billion, up 19% [5][9] - GAAP operating earnings for Q4 were $944 million, or 27.9% of sales, up from 27% in the year-ago quarter, while non-GAAP operating earnings were $1.1 billion, up 19% [7][9] Business Line Data and Key Metrics Changes - In the Products and SI segment, Q4 sales were up 11%, with operating earnings at $667 million, or 30.9% of sales, driven by higher sales and improved operating leverage [11][12] - Software and Services segment revenue grew by 15% in Q4, with operating earnings of $419 million and operating margins at 34.3%, up from 30.3% last year [13][14] Market Data and Key Metrics Changes - North America revenue for Q4 was $2.4 billion, up 7%, while international revenue was $1 billion, up 26% [15] - For the full year, international revenue was $3.3 billion, up 11%, with growth in both segments and double-digit growth in all three technologies [15] Company Strategy and Development Direction - The company anticipates strong demand in 2026, supported by a record backlog and expanding product and services portfolio, with expectations for another year of revenue, earnings, and cash flow growth [6][17] - The launch of the Assist Suites aims to integrate AI-powered applications for public safety, enhancing operational efficiency and driving recurring revenue growth [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the prioritization of safety and security from public safety and defense customers worldwide [22] - The company expects Q1 sales to increase by 6% to 7%, with non-GAAP EPS guidance between $3.20 and $3.25 per share, and full-year revenue guidance of approximately $12.7 billion [16][17] Other Important Information - The company achieved an 11% increase in dividends, marking the 14th consecutive year of double-digit increases [10] - The effective tax rate for Q4 was 23.6%, compared to 22% in the year-ago quarter, driven by lower benefits from share-based compensation [8] Q&A Session Summary Question: Update on Silvus and its growth potential - Management highlighted strong performance from Silvus, with expectations for revenue of $675 million in 2026, driven by demand in Ukraine and unmanned systems [25][28] Question: Outlook for margins in 2026 - Management expects another good year for margins, with an anticipated 100 basis points of operating margin expansion despite tariff headwinds [34][35] Question: Acceleration in the command business and competition - The command center segment saw 15% growth, with expectations for continued strong performance driven by the APEX Next applications [41][43] Question: Insights on backlog and product orders - Management expressed confidence in product backlog growth, expecting it to be up from $3.8 billion exiting 2025, supported by strong order performance [47][51] Question: Early adoption of AI solutions and competition - Management noted significant early adoption of AI solutions, emphasizing the integration of applications across workflows to enhance efficiency [84][88]

Earnings Presentation Q4 and Full-Year 2025 Results | February 11, 2026 Safe Harbor A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These forward-looking statements are based on the current expectations of Motorola Solutions, and we can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today ...

Core Viewpoint - Motorola Solutions projects annual sales and profit to exceed Wall Street expectations, driven by its public safety technology sector benefiting from ongoing government expenditure [1] Group 1: Financial Forecast - The company anticipates higher annual sales and profit figures compared to Wall Street estimates [1] Group 2: Business Segment Performance - The public safety technology business is expected to be a key driver of growth due to sustained government spending [1]

Financial Performance - Fourth-quarter sales reached $3.38 billion, an increase of 12% year-over-year; full-year sales were $11.68 billion, up 8% from the previous year[5] - GAAP operating earnings for Q4 were $944 million, a 16% increase from Q4 2024; full-year operating earnings were $2.99 billion, up 11%[5] - Non-GAAP Q4 EPS was $4.59, up 14%; full-year non-GAAP EPS was $15.38, an increase of 11%[5] - The company generated $1.3 billion in operating cash flow during Q4, with full-year operating cash flow totaling $2.8 billion, a 19% increase[5] - Net earnings attributable to Motorola Solutions, Inc. grew from $611 million in 2024 to $649 million in 2025, a rise of 6.2%[39] - Net earnings for the three months ended December 31, 2025, increased to $650 million, up from $612 million in the same period of 2024, representing a growth of 6.2%[43] - Total non-GAAP net earnings attributable to Motorola Solutions, Inc. for the year ended December 31, 2025, was $2,599 million, compared to $2,366 million in 2024, reflecting an increase of 9.8%[48] Sales and Revenue Growth - The Products and Systems Integration segment saw sales growth of 11% in Q4 and 5% for the full year, while the Software and Services segment grew 15% in Q4 and 13% for the full year[9] - Net sales increased from $3,010 million in Q4 2024 to $3,380 million in Q4 2025, representing a growth of 12.3%[37] - Organic revenue for Q4 2025 was $3.19 billion, marking a 6% increase from $3.01 billion in Q4 2024[61] - Net sales for the year ended December 31, 2025, totaled $11.68 billion, an 8% increase from $10.82 billion in 2024[61] Cash Flow and Investments - Free cash flow is defined as net cash provided by operating activities less capital expenditures, which the company believes is useful for investors to compare performance across the industry[20] - Net cash provided by operating activities for the year ended December 31, 2025, was $2,837 million, compared to $2,391 million in 2024, reflecting an increase of 18.6%[45] - Free cash flow for the three months ended December 31, 2025, was $1,142 million, up from $983 million in the same period of 2024, indicating a growth of 16.2%[47] - The company reported a net cash used for investing activities of $5,164 million for the year ended December 31, 2025, compared to $507 million in 2024, indicating a significant increase due to acquisitions and investments[45] Acquisitions and Stock Repurchase - The company closed four acquisitions in 2025 for a total of $4.9 billion and repurchased $1.2 billion of its common stock[10] - The company repurchased $490 million of common stock during the three months ended December 31, 2025, compared to $106 million in the same period of 2024[43] Tax and Legal Matters - The GAAP effective tax rate for 2025 was 23.2%, compared to 19.8% in the previous year, influenced by foreign tax credit carryovers[10] - In 2025, Hytera made payments of $157 million, of which the company received $141 million net of withholding taxes, related to court-ordered amounts for I-Series products[26] - The District Court ordered Hytera to pay approximately $70 million for unpaid royalties and interest due to continued misuse of the company's trade secrets in H-Series products[28] - The company has excluded Hytera-related legal expenses from its GAAP operating income since 2020, as these are not considered part of normal operating expenses[29] - The company continues to seek collection of the judgment against Hytera through ongoing legal processes, with additional hearings scheduled[26][28] Future Outlook - For Q1 2026, the company expects revenue growth between 6% and 7% compared to Q1 2025, with non-GAAP EPS projected between $3.20 and $3.25[13] - For full-year 2026, the company anticipates revenue of approximately $12.7 billion and non-GAAP EPS in the range of $16.70 to $16.85[13] - The company anticipates that the impact of changes in the global trade environment and geopolitical events may affect its financial outlook for 2026[32] Operational Metrics - Gross margin improved from 51.4% in Q4 2024 to 52.3% in Q4 2025, indicating enhanced profitability[37] - Operating earnings rose from $814 million in Q4 2024 to $944 million in Q4 2025, a growth of 15.9%[37] - Operating earnings for the year ended December 31, 2025, were $2.99 billion, up from $2.69 billion in 2024, indicating a growth of 11.2%[58] - The operating earnings as a percentage of net sales for 2025 was 25.6%, compared to 24.8% in 2024[58] - Non-GAAP operating earnings after adjustments for 2025 were $3.54 billion, compared to $3.14 billion in 2024[58] Research and Development - Research and development expenditures increased from $246 million in Q4 2024 to $270 million in Q4 2025, reflecting a focus on innovation[37] Shareholder Value - Earnings per share (diluted) increased from $9.23 in 2024 to $12.75 in 2025, reflecting improved shareholder value[39] - Earnings per share attributable to Motorola Solutions, Inc. (MSI) increased to $3.86 for Q4 2025, up from $3.56 in Q4 2024, representing an increase of 8.4%[52] - Non-GAAP earnings per share attributable to MSI rose to $4.59 in Q4 2025, compared to $4.04 in Q4 2024, reflecting a growth of 13.6%[52]

Earnings Report - Motorola Solutions is set to release its fourth-quarter earnings results on February 11, with expected earnings of $4.35 per share, an increase from $4.04 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $3.34 billion, compared to $3.01 billion a year earlier [1] Security Authorization - On February 10, Motorola Solutions received security authorization from the Federal Risk and Authorization Management Program (FedRAMP) for its SVX and CommandCentral DEMS [2] - Following this announcement, Motorola Solutions shares fell by 0.7%, closing at $419.69 on Tuesday [2] Analyst Ratings - Recent ratings from analysts indicate a focus on Motorola Solutions, with various metrics available for readers to assess the stock [3]