Motorola Solutions' fourth quarter results were positively received by the market, reflecting the company’s ability to deliver double-digit revenue growth and surpass consensus expectations. Management attributed this performance to robust demand across both the Products and SI, and Software and Services segments, with notable order strength in mission-critical communications, video security, and cloud-based Command Center offerings. CEO Gregory Q. Brown emphasized that the company ended the year with a record backlog of $15.7 billion, driven by “record orders in both segments.” The successful integration of recent acquisitions and the launch of new AI-powered products, such as the SVX body-worn assistant, further supported quarterly momentum.
Is now the time to buy MSI? Find out in our full research report (it’s free for active Edge members).
Motorola Solutions (MSI) Q4 CY2025 Highlights:
- Revenue: $3.38 billion vs analyst estimates of $3.34 billion (12.3% year-on-year growth, 1.1% beat)
- Adjusted EPS: $4.59 vs analyst estimates of $4.35 (5.4% beat)
- Adjusted EBITDA: $1.16 billion vs analyst estimates of $1.13 billion (34.3% margin, 2.6% beat)
- Operating Margin: 27.9%, in line with the same quarter last year
- Market Capitalization: $75.83 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Motorola Solutions’s Q4 Earnings Call
- Timothy Patrick Long (Barclays): asked how Silvus’ growth outlook is evolving with the rise in unmanned systems demand. CEO Gregory Q. Brown replied that international markets, especially Ukraine and NATO countries, are driving higher expectations for Silvus, with revenue guidance raised accordingly.
- Andrew Carl Spinola (UBS): probed margin outlook amidst tariff and memory cost increases. CFO Jason J. Winkler explained that margin expansion will be achieved through product mix, increased software adoption, and prudent cost management, aiming for 100 basis points of improvement.
- Adam Tindle (Raymond James): questioned the sustainability of backlog growth and order momentum as pandemic-era supply chain effects subside. Brown described a transition to a normalized “quick-turn” model and forecasted continued double-digit product orders throughout the year.
- Meta A. Marshall (Morgan Stanley): inquired about the impact of memory price increases and the strongest business areas for the year. Management clarified that memory is a small cost component, and growth is broad-based across LMR, cloud video, and Command Center software.
- Keith Michael Housum (Northcoast Research): explored early results and competitive positioning of AI Assist Suites. CTO Mahesh Saptharishi highlighted extensive adoption in 911 workflows and emphasized the integration and cost advantages over competitor offerings.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the adoption pace and monetization of the new AI Assist Suites and SVX device, (2) continued execution in international and defense markets, particularly with Silvus integration, and (3) margin resilience in the face of tariffs and component cost pressures. Success in expanding recurring revenue streams and integrating cloud-based solutions will also be important signposts for future performance.
Motorola Solutions currently trades at $457.82, up from $421.13 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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