TLDR
- Motorola reports record revenue and earnings as its shares tick upward
- Growth in software and services fuels margin and cash flow improvements
- Yearly backlog rises to $15.7 billion, enhancing long-term visibility
- Robust cash flow supports share buybacks, dividends, and acquisitions
- Public safety contracts sustain recurring revenue momentum
Motorola Solutions (MSI) shares finished the trading day higher after the company announced record financial results and grew its backlog. The stock closed at $421.13, a 0.34% increase, and stayed near the top of its daily trading range. The uptick came on the heels of a strong earnings report that emphasized growth in hardware, software, and long-term service contracts.
Motorola Solutions Posts Record Revenue And Earnings Growth
Motorola Solutions disclosed fourth-quarter sales of $3.4 billion, with revenue up 12% from the year-ago period. Full-year sales hit $11.7 billion, and total revenue rose 8% versus 2024. The company achieved record annual earnings and cash flow, and management attributed the results to robust global demand.
GAAP fourth-quarter earnings per share hit $3.86, a figure that increased 8% year over year. Full-year GAAP earnings rose to $12.75 per share, jumping 38% from the prior year. Non-GAAP earnings also improved, with fourth-quarter EPS reaching $4.59 and annual EPS rising to $15.38.
Operating margins widened during the quarter, with higher sales driving better leverage across business segments. GAAP operating margin hit 27.9%, while non-GAAP margin rose to 32.1%. Growth stemmed from a favorable product mix, though higher tariffs partially offset those gains.
Software And Systems Segments Drive Broad Expansion
The products and systems integration segment produced $2.16 billion in quarterly sales, with revenue up 11% from the previous year. Annual segment sales reached $7.25 billion, a 5% year-over-year increase. Growth mirrored demand for mission-critical networks and video security systems.
The software and services segment recorded $1.22 billion in quarterly sales, with revenue up 15% from the year-ago period. Full-year segment sales hit $4.43 billion, expanding 13% versus 2024. Operating earnings in this segment rose significantly, and margins improved across recurring service contracts.
Cash generation improved during the quarter, with operating cash flow reaching $1.3 billion. Full-year operating cash flow totaled $2.8 billion, a 19% increase. Strong earnings bolstered liquidity, allowing the company to fund dividends, share buybacks, and acquisitions.
Backlog Surge And Capital Allocation Support Outlook
Motorola Solutions concluded the year with a record backlog of $15.7 billion, $1 billion higher than the prior year. The increase reflected strong order volume, with software services accounting for most of the growth. The backlog offered revenue visibility and reinforced long-term contract momentum.
During the quarter, the company bought back $490 million in shares and paid out $182 million in dividends. It also invested in acquisitions and capital projects, with management balancing debt repayment and expansion plans. These actions supported shareholder returns while preserving operational flexibility.
Notable wins included major public safety network contracts in the U.S. and international system deployments. Service renewals and long-term infrastructure deals bolstered recurring revenue streams. These agreements expanded Motorola Solutions’ presence and supported sustained demand heading into 2026.
