Motorola Solutions Reports Record Q4 2025 Earnings and Strong Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy MSI?
Source: seekingalpha
- Record Performance: Motorola Solutions achieved a 12% revenue increase in Q4 2025, reaching $3.4 billion, with operating earnings of $944 million and an operating margin of 27.9%, reflecting strong performance across all business segments and solidifying its market position.
- Order and Cash Flow Growth: The year-end backlog reached $15.7 billion, up 10% year-over-year, while operating cash flow hit a record $2.8 billion, indicating robust financial support for future business expansion and investments.
- Product Innovation and Market Demand: The launch of Assist Suites, integrating critical AI applications priced at $99 per user per month, is expected to drive revenue growth of 10%-11% in the Software and Services segment, enhancing customer loyalty and market share.
- Optimistic Outlook: Management anticipates revenue of approximately $12.7 billion for 2026, with non-GAAP EPS projected between $16.70 and $16.85, demonstrating confidence in future growth, particularly in the rapidly expanding AI and software markets.
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Analyst Views on MSI
Wall Street analysts forecast MSI stock price to rise
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 453.440
Low
436.00
Averages
486.75
High
525.00
Current: 453.440
Low
436.00
Averages
486.75
High
525.00
About MSI
Motorola Solutions, Inc. provides public safety and enterprise security. The Company offers safety and security technologies, which include land mobile radio communications (LMR), video security, and command center. Across technologies, it offers cloud-based and hybrid software solutions, and services such as cybersecurity subscription services and managed and support services. Its segments include Products and Systems Integration, and Software and Services. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, video security devices and infrastructure, and the implementation and integration of such systems, devices, and applications. The Company's Software and Services segment provides a range of solution offerings for government, public safety and commercial customers. Its Software includes public safety and enterprise Command Center, unified communications applications, certain mobile video equipment, and video software solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Forecast Impact: The rise in shares follows positive forecasts regarding annual sales and profits exceeding estimates.
See More
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- Rating Adjustments and Market Dynamics: Piper Sandler analyst James Fish upgraded Motorola's rating from Neutral to Overweight, despite lowering the price target from $465 to $443, reflecting recognition of the company's leadership in public safety while noting strong capital allocation driven by AI in video safety.
- Order Growth and Market Demand: The resurgence in demand for drone security management has driven bookings growth for Motorola, with analysts believing this trend will further improve the company's demand backlog and enhance its competitive position in the market.
- Increased Investment Appeal: Although some AI stocks are viewed as having greater upside potential, Motorola's 15% valuation compression has made it a more attractive entry point for investors, indicating that its investment value is rising in the current market environment.
See More
