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]

Core Viewpoint - The company announced that its chairman and some directors and executives hold a total of 1.3933 million shares, representing 0.1026% of the total share capital, and plan to reduce their holdings due to personal financial needs [1] Group 1 - The planned reduction of shares will occur between March 13, 2026, and June 12, 2026 [1] - The total number of shares to be reduced is up to 348,300 [1] - Each individual will not reduce more than 25% of their total holdings as of the end of the previous year [1]

Core Insights - Smaller US companies are experiencing a strong earnings season, with 65% of Russell 2000 constituents exceeding fourth-quarter profit expectations, the highest rate since mid-2021, while the S&P 500 firms have the lowest beat rate in three quarters [1] - The trend indicates a market rotation away from technology-heavy stocks, with small caps showing the best earnings revisions breadth since August, suggesting a return of positive operating leverage [2][5] - The Russell 2000 index is outperforming the S&P 500 by over 6 percentage points this year, on track for its strongest outperformance in a decade, as the Federal Reserve cuts rates and the US avoids a recession [6] Company Performance - Solid earnings results from small-cap companies have led to significant stock price increases, such as Viavi Solutions Inc. which surged 18% after better-than-expected earnings [8] - Russell 2000 companies are experiencing a higher rate of earnings revisions compared to large-cap firms, indicating a shift in dominance from the S&P 500 [9] Market Sentiment - Investors are becoming increasingly cautious about substantial investments in artificial intelligence, contributing to volatility in tech-heavy indices like the Nasdaq 100 [6] - The market is diversifying beyond a few large tech companies, with a broader focus on stocks across various sectors driven by economic performance [7]

Core Viewpoint - ZTE Corporation has filed an international patent application for a communication system training method, with the application number PCT/CN2025/087057, set to be published on February 5, 2026 [1] Group 1: Patent Application - The patent application is titled "Training Method, Communication Method, Equipment, System, and Storage Medium for Communication Systems" [1] - This marks one of the 159 international patent applications filed by ZTE in 2023, which is a decrease of 27.4% compared to the same period last year [1] Group 2: R&D Investment - In the first half of 2025, ZTE invested 12.665 billion yuan in research and development, reflecting a year-on-year decrease of 0.48% [1]

Core Insights - ZTE Corporation (000063) has filed an international patent application titled "Information Transmission Method, Device, Storage Medium, and Program Product" with application number PCT/CN2025/089515, which is set to be published internationally on February 5, 2026 [1] Group 1: Patent Activity - ZTE has announced a total of 153 international patent applications this year, representing a decrease of 30.14% compared to the same period last year [1] Group 2: R&D Investment - In the first half of 2025, ZTE invested 12.665 billion yuan in research and development, which is a slight decrease of 0.48% year-on-year [1]

Core Viewpoint - ZTE Corporation has filed an international patent application for a mobility management method and device, indicating ongoing innovation efforts despite a decrease in patent filings this year [1] Group 1: Patent Application - The patent application is titled "A Method and Device for Perceiving Mobility Management" with application number PCT/CN2025/088624, and it is set to be published internationally on February 5, 2026 [1] - ZTE has announced a total of 153 international patent applications this year, which represents a decrease of 30.14% compared to the same period last year [1] Group 2: Research and Development Investment - In the first half of 2025, ZTE invested 12.665 billion yuan in research and development, showing a slight decrease of 0.48% year-on-year [1]

Core Insights - Ribbon Communications Inc. reported strong cash flow and bookings driven by an expanding customer base in voice modernization, with U.S. Tier 1 service provider sales projected to increase over 25% in 2025 [1][2] - The fourth quarter results were affected by delays in customer projects and budget timing, but the company achieved a record level of product and services bookings, including over $50 million from new voice modernization programs [2][4] - The company is targeting growth in high-demand AI and defense markets, anticipating increased government spending in these areas [1][2] Financial Performance - Fourth Quarter 2025 financial results showed revenue of $227 million, down from $251 million in Q4 2024, with GAAP operating income of $9 million compared to $33 million in the previous year [4][5] - Non-GAAP adjusted EBITDA for Q4 2025 was $40 million, down from $55 million in Q4 2024, while GAAP gross margin decreased to 53.3% from 55.7% year-over-year [4][5] - For the full year 2025, total revenue was $845 million, slightly up from $834 million in 2024, but GAAP operating income turned to a loss of $3 million compared to a profit of $17 million in 2024 [4][5] Business Outlook - The company projects revenue for 2026 to be between $840 million and $875 million, with non-GAAP gross margin expected to range from 52.5% to 53.5% [6] - For Q1 2026, revenue is projected to be between $160 million and $170 million, with non-GAAP gross margin anticipated to be between 48% and 49% [6] - The company expects to benefit from a new tax advantage that could reduce future cash tax payments by approximately $15-$20 million over the next several years, starting in 2026 [2][6]

Core Insights - Motorola Solutions, Inc. (MSI) is set to report its fourth-quarter 2025 results on February 11, with a history of earnings surprises averaging 5.5% over the last four quarters [1][10] Revenue Expectations - The company is expected to report year-over-year revenue growth, driven by steady demand in core businesses, disciplined cost management, and effective operational execution [2] - The Zacks Consensus Estimate for total revenues in the December quarter is $3.34 billion, up from $3.01 billion in the previous year [9][11] - Revenue estimates for the Products and Systems Integration segment are projected at $2.13 billion, an increase from $1.95 billion year-over-year [8] - The Services and Software segment is expected to generate $1.21 billion, compared to $1.06 billion in the same quarter last year [8] Factors Influencing Performance - The launch of Silvus' StreamCaster NEXUS is anticipated to enhance Motorola's tactical networking portfolio, contributing to near-term revenue through customer adoption and defense orders [3] - Advancements in AI-assisted policing tools are likely to increase software subscriptions and upgrades from public safety agencies, boosting bookings and recurring software revenues [4] - The acquisition of Blue Eye adds AI-powered remote video monitoring services, which may drive immediate bookings and recurring service revenues [5] - Approval from the U.S. Department of Defense for the Silvus StreamCaster 4400 as a secure communication tool is expected to strengthen Motorola's defense portfolio and generate early orders from defense customers [6] - Ongoing investments in innovation and efficiency are projected to help maintain healthy margins, supported by a strong order pipeline and improving market conditions [7] Earnings Outlook - The consensus estimate for adjusted earnings per share is $4.36, an increase from $4.04, driven by top-line growth [9] - The Earnings ESP indicates no predicted earnings beat for Motorola for the fourth quarter, with both the Most Accurate Estimate and the Zacks Consensus Estimate at $4.36 per share [10][12]

Core Viewpoint - The AI sector remains promising, with significant growth potential and opportunities for investment despite recent volatility in stock prices [7][40][67]. Market Overview - The AI stocks experienced a sell-off similar to previous market declines, with the S&P 500 dropping approximately 15% during a recent period [8]. - The current market is characterized by confusion, with geopolitical events influencing investor behavior and leading to volatility in both tech and safe haven sectors [17][22]. AI Sector Insights - The global AI market is projected to grow from $539 billion in 2026 to over $3 trillion by 2033, driven by investments from major tech companies and increasing demand for data centers [40][42]. - Adoption of AI technologies is expanding across various sectors, including healthcare and manufacturing, indicating a long-term trend rather than a temporary phase [15][20]. Stock Recommendations - The top 10 AI stocks recommended show an average revenue growth rate of 38% and an EPS growth rate of 99%, significantly outperforming the S&P 500 and the Magnificent Seven stocks [66][67]. - Specific stocks highlighted include: - **Lumentum Holdings (LITE)**: Up 402% in the last year, with a long-term growth rate of 61% [70]. - **Micron Technology (MU)**: Up 387% in the last year, with a long-term growth rate of 51% [72]. - **Ciena (CIEN)**: Up 215% in the last year, with a long-term EPS growth CAGR of 44% [74]. - **General Motors (GM)**: Up 76% in the last year, utilizing AI for enhanced vehicle connectivity [79]. - **Taiwan Semiconductor Manufacturing (TSM)**: Up 71% in the last year, with strong growth metrics [80]. - **Credo Technology (CRDO)**: Despite recent declines, it has strong growth potential with a forward EPS growth rate of 248% [97]. - **AppLovin (APP)**: Up almost 1000% within Alpha Picks, with a long-term growth rate of 48% [98]. - **Globus Medical (GMED)**: In the healthcare sector, showing strong growth metrics [100]. Investment Strategy - The strategy emphasizes buying on dips, particularly for stocks with strong fundamentals that have recently experienced price declines [35][106]. - The quant model used for stock selection focuses on multiple factors, including growth, value, and profitability, ensuring a diversified approach to investment [51][60].