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FY2025 Q4
Raised
Motorola Solutions, Inc. earnings call
Buzzberg read
Record Q4 orders and backlog signal strong demand
Motorola Solutions reported a record Q4 and full-year 2025, growing revenue 12% and 8% respectively, driven by strong demand across both segments and all technologies. The company is raising its 2026 revenue outlook on the back of a record $15.7B backlog and strong order momentum, particularly highlighting the outperformance of its Sylvus defense business. Management remains confident in margin expansion despite tariff headwinds, banking on portfolio mix and AI-driven software adoption. Q4 2025 revenue grew 12% YoY with record backlog of $15.7B, up $1B YoY, and record orders in both segments.
Buzzberg read Record Q4 orders and backlog signal strong demand Motorola Solutions reported a record Q4 and full-year 2025, growing revenue 12% and 8% respectively, driven by strong demand across both segments and all technologies. The company is raising its 2026 revenue outlook on the back of a record $15.7B backlog and strong order momentum, particularly highlighting the outperformance of its Sylvus defense business. Management remains confident in margin expansion despite tariff headwinds, banking on portfolio mix and AI-driven software adoption. Q4 2025 revenue grew 12% YoY with record backlog of $15.7B, up $1B YoY, and record orders in both segments. Read full analysisCollapse analysis
Motorola Solutions reported a record Q4 and full-year 2025, growing revenue 12% and 8% respectively, driven by strong demand across both segments and all technologies. The company is raising its 2026 revenue outlook on the back of a record $15.7B backlog and strong order momentum, particularly highlighting the outperformance of its Sylvus defense business. Management remains confident in margin expansion despite tariff headwinds, banking on portfolio mix and AI-driven software adoption. Q4 2025 revenue grew 12% YoY with record backlog of $15.7B, up $1B YoY, and record orders in both segments.
- Full year 2025 revenue reached $11.7B (up 8%) with non-GAAP operating margin at record 30.3%.
- 2026 revenue guidance raised to $12.7B (from $12.6B color), with EPS guide of $16.70-$16.85 and operating cash flow of ~$3B.
- Sylvus revenue expectations for 2026 raised to $675M, up from $600M, driven by strong international and unmanned systems demand, including significant traction with partners like Anduril.
Revenue$3.38BReported
EPS$4.59Reported
Gross margin48.73%Reported
Operating margin26.01%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
AI
AI assist suites launched at $99 per user per month
Guidance
2026 guidance raised with faster second-half growth
Show 3 more callouts
Guidance
Sylvus 2026 revenue expectation raised to $675 million
Margins
Margins expansion continues despite tariff headwinds
Cash Flow
Strong cash generation funds capital allocation flexibility
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $3.38B | Reported |
| EPS | $4.59 | Reported |
| Gross margin | 48.73% | Reported |
| Operating margin | 26.01% | Reported |
| Free cash flow | $1.142B | Reported |
| Capex | $0.114B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $16.70–$16.85 | $16.77 | Maintained |
| EPS | FY2026 Q1 | $3.20–$3.25 | $3.23 | Guided |
| Free cash flow | FY2026 | $3B | $3B | Guided |
| Revenue | FY2026 | $12.7B | $12.7B | Raised |
| Revenue | FY2026 Q1 | 6%–7% | 6.5% | Guided |
AI, capex & demand read
Management read
Upbeat
Management repeatedly emphasized record results, strong demand, and raised guidance, expressing high confidence in continued growth and margin expansion.
Management AI read
Management highlighted the launch of AI 'assist suites' for dispatchers and first responders at $99/user/month, emphasizing a comprehensive AI ecosystem that ingests multi-source data to reclaim time for public safety. They noted strong adoption of APEX Next apps, with subscriber targets raised to 300k by end of 2026, and positioned AI as an integrated part of their workflow portfolio, driving rec
all 4 named companies below
Companiesreturns since call
Partners
ANDURIL
Partners
Greg Brown
Motorola (via Sylvus) is a key radio supplier to Anduril's product lineup; continued collaboration is a growth tailwind for Sylvus and validates its technology across defense platforms.
Evidence
“I think two-thirds of their products are have a or incorporate a Silvis radio into their design. So, we're really encouraged. We want to deepen that relationship”
Supply chain
Supply chain
Greg Brown
Motorola is raising Sylvus 2026 revenue expectations to $675M, up $75M from a quarter ago, driven by strong demand from Ukraine and broader unmanned systems / NATO demand. — This signals accelerating demand for mobile ad-hoc network (MANET) radios in defense drones, potentially benefiting suppliers and competitors in the unmanned systems space.
Evidence
“We're raising our expectations again for revenue this year in 2026. We expect SILVUS revenue of $675 million in 2026. That's $75 million higher from expectations a quarter ago”
Supply chain
Jason Winkler
The company expects a $60 million incremental tariff headwind in the first half of 2026 and rising memory costs, but plans to offset these with gross margin improvements and surgical price increases. — Despite memory cost increases, Motorola expects to mitigate the impact, which could signal continued pricing power but also highlights margin pressure across electronics supply chains.
Evidence
“we plan for an incremental tariff, which will present itself in the first half, and that's about $60 million. In terms of drivers for overall margin expansion and overcoming tariffs and other parts of the portfolio, like memory”
External signals
Supply-chain alpha · 2returns since call
Motorola is raising Sylvus 2026 revenue expectations to $675M, up $75M from a quarter ago, driven by strong demand from Ukraine and broader unmanned systems / NATO demand.
The company expects a $60 million incremental tariff headwind in the first half of 2026 and rising memory costs, but plans to offset these with gross margin improvements and surgical price increases.
Methodology & coverage
Management-only analysis. All 4 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.