Safety and security are at the heart of everything we do at Motorola Solutions. We build and connect technologies to help protect people, property and places. Our solutions foster the collaboration that's critical for safer communities, safer schools, safer hospitals, safer businesses, and ultimately, safer nations. Learn more about our commitment to innovating for a safer future for us all at www.motorolasolutions.com. CHICAGO--(BUSINESS WIRE)--Motorola Solutions, Inc. (NYSE: MSI) today announced that its ...

CHICAGO--(BUSINESS WIRE)--The Motorola Solutions Foundation, the charitable and philanthropic arm of Motorola Solutions (NYSE: MSI), today announced its significant 2025 impact, including over $10 million in strategic grants and a new company record of more than 125,000 employee volunteer hours. These milestones reflect the Foundation's three core pillars: uplifting the first responder community, empowering the next generation of innovators and inspiring a global employee culture of volunteeris. ...

Financial Performance - In 2025, Motorola Solutions reported consolidated net sales of $11.7 billion, with the "Products and Systems Integration" segment contributing $7.3 billion (62%) and the "Software and Services" segment contributing $4.4 billion (38%) to total sales[22][30]. - The U.S. government was the largest customer, contributing approximately 8% of consolidated net sales in 2025, indicating the critical nature of government contracts for revenue stability[44]. - As of December 31, 2025, the company's backlog was $15.742 billion, up from $14.697 billion in 2024, with $4.8 billion expected to be recognized as revenue in 2026[49]. - The company reported a five-year cumulative total shareholder return of $239.54 as of December 31, 2025, compared to $195.98 for the S&P 500 Index[184]. Product Segments - The "Mission Critical Networks" (MCN) technology accounted for 84% of net sales within the "Products and Systems Integration" segment in 2025, highlighting its significance in the company's revenue generation[26]. - The Video technology represented 16% of the net sales in the "Products and Systems Integration" segment in 2025, indicating a growing demand for video security solutions[29]. - Within the "Software and Services" segment, MCN services made up 58% of total segment sales in 2025, emphasizing the importance of support and managed services[33]. - The Video technology within the "Software and Services" segment accounted for 21% of total segment sales in 2025, reflecting the increasing reliance on video analytics and security solutions[38]. - The Command Center technology also represented 21% of the net sales in the "Software and Services" segment in 2025, showcasing its role in enhancing public safety workflows[41]. Research and Development - Research and Development expenditures increased to $970 million in 2025, compared to $917 million in 2024 and $858 million in 2023, with approximately 40% of employees engaged in R&D[52]. - The company made several acquisitions, including Blue Eye for $79 million, Silvus Technologies for $4.4 billion, and Theatro for $240 million, enhancing its capabilities in AI, video security, and communication technologies[50]. - The company holds approximately 6,630 granted patents and had about 690 pending patent applications as of December 31, 2025, with 295 patents granted in 2025 alone[57]. Workforce and Culture - The workforce consisted of approximately 23,000 employees globally, with 51% in North America and 49% internationally, and 40% engaged in R&D and engineering[71]. - The company is committed to a "people first" philosophy, focusing on employee growth and engagement through mentorship and development programs[72]. Market and Competition - The competitive landscape includes major players such as Airbus, L3Harris Technologies, and Axon Enterprise, highlighting the need for continuous innovation and adaptation in the market[48]. - Motorola Solutions faces increased competition from both incumbents and emerging competitors, particularly in AI technologies, which may increase research and development costs[84]. Regulatory and Compliance Risks - The company is subject to various regulations regarding environmental impacts and worker health and safety, which are expected to increase in the coming years[66]. - Compliance with new legal and regulatory requirements may increase costs and limit the range of new products and services offered[85]. - The company is exposed to compliance obligations in various jurisdictions, which could lead to fines and reputational harm if not met[122]. - The company is subject to complex and changing laws regarding cybersecurity and data protection, which could lead to increased costs and potential liabilities[112]. Supply Chain and Operational Risks - The company has experienced increased costs for materials and components due to a dynamic global supply chain environment, which could negatively impact its results of operations[93]. - The company is exposed to risks from supply chain disruptions and price increases, which could impact its ability to meet customer demand[94]. - A significant portion of manufacturing and R&D occurs outside the U.S., which could negatively impact business if operations are disrupted[97]. Cybersecurity - Cybersecurity threats are managed through a comprehensive program that includes monitoring, incident response procedures, and third-party assessments[152]. - The company conducts an annual enterprise risk management assessment to identify and mitigate principal risks, including cybersecurity[155]. - As of the filing of the Form 10-K, there were no known cybersecurity attacks that materially affected the company since the beginning of 2025[158]. Strategic Acquisitions and Growth - The company expects to continue making strategic acquisitions to position itself for growth, which introduces significant risks related to integration and achieving anticipated benefits[88]. - The company is expanding its ecosystem through organic investments and acquisitions in safety and security technologies[189]. Financial Obligations and Liabilities - The company has underfunded pension obligations, which could require additional large contributions if financial markets perform poorly[149]. - Government contracts and grants are subject to changes in funding availability, spending levels, and priorities, which could negatively impact the company's business[118].

Core Insights - Motorola Solutions, Inc. (MSI) achieved record revenues, operating earnings, and operating margin in Q4 2025, driven by effective operational execution and strong growth dynamics supported by solid order trends [1][10] Financial Performance - GAAP earnings for Q4 2025 were $649 million or $3.86 per share, up from $611 million or $3.56 per share in Q4 2024, while non-GAAP earnings were $771 million or $4.59 per share compared to $693 million or $4.04 per share a year earlier, reflecting top-line growth [3][4] - For the full year 2025, GAAP earnings reached $2.15 billion or $12.75 per share, an increase from $1.58 billion or $9.23 per share in 2024, with non-GAAP earnings improving to $2.6 billion or $15.38 per share from $2.37 billion or $13.84 per share [4] Revenue Growth - Quarterly net sales were $3.38 billion, a 12% increase year over year, surpassing the consensus estimate of $3.34 billion, with strong performance across all regions and segments [5][10] - North American revenues rose 7% to $2.36 billion, while international revenues surged 26% to $1.02 billion, driven by video security and command center software sales [6] Segment Performance - Products and Systems Integration segment reported net sales of $2.16 billion, up 11% year over year, with a decrease in backlog to $3.8 billion [7] - Software and Services segment saw net sales increase by 15% to $1.22 billion, with backlog rising to $11.9 billion, indicating strong demand across technologies [8] Operating Metrics - GAAP operating earnings increased to $944 million from $814 million in the prior year, while non-GAAP operating earnings rose to $1.09 billion from $916 million [9] - Overall GAAP operating margin improved to 27.9% from 27%, and non-GAAP operating margin reached a record 32.1%, up from 30.4% [11] Cash Flow and Liquidity - Motorola generated $1.26 billion in cash from operating activities in Q4 2025, compared to $1.07 billion a year ago, with free cash flow of $1.14 billion [12] - The company repurchased $490 million worth of stock during the quarter and ended with $1.16 billion in cash and cash equivalents [12] Guidance - For Q1 2026, Motorola expects non-GAAP earnings between $3.20 and $3.25 per share, with revenue growth of 6-7% [13] - For the full year 2026, the company anticipates non-GAAP earnings of $16.70-$16.85 per share on revenues of approximately $12.7 billion, supported by healthy growth in both segments [13] Strategic Outlook - Motorola is positioned for growth through disciplined capital deployment and a strong balance sheet, with expectations of robust demand across LMR products, video security, services, and software [14]

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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]

Core Viewpoint - Tyler Technologies has forecasted lower-than-expected annual revenue for 2026 due to reduced software spending by government entities amid economic uncertainty, leading to an over 8% drop in its shares during extended trading [1]. Group 1: Revenue Forecast - For 2026, Tyler Technologies expects revenue between $2.50 billion and $2.55 billion, which is below Wall Street's expectation of $2.56 billion [1]. - The company anticipates annual subscription revenue growth of 12% to 15%, while analysts had projected a growth of 15.4% [1]. Group 2: Quarterly Performance - In the fourth quarter, Tyler reported revenue of $575.2 million, missing the average analyst expectation of $591.1 million [1]. - Adjusted earnings per share for the quarter were $2.64, falling short of estimates of $2.72 [1]. Group 3: Market Conditions - The company is heavily reliant on public sector budgets, which are being tightened due to economic slowdown and funding shortfalls, potentially impacting bookings and organic growth [1]. - Concerns have risen regarding the pace of cloud migrations over the next two years, as government approvals for projects are taking longer amid budget constraints [1].