Motorola Solutions (MSI) Stock: Jumps on Record Sales, Earnings and Backlog Surge

TLDR

• Motorola posts record revenue and earnings as shares edge higher
• Software and services growth drives margin and cash flow gains
• Annual backlog climbs to $15.7B, boosting long-term visibility
• Strong cash flow funds buybacks, dividends, and acquisitions
• Public safety contracts support recurring revenue momentum

Motorola Solutions (MSI) shares ended the session higher after the company posted record financial results and expanded its backlog. The stock closed at $421.13, up 0.34%, and held near the upper end of its daily range. The move followed a strong earnings release that highlighted growth across hardware, software, and long-term service contracts.

Motorola Solutions, Inc., MSI

Motorola Solutions Posts Record Revenue And Earnings Growth

Motorola Solutions reported fourth-quarter sales of $3.4 billion, and revenue increased 12% from the prior year period. Full-year sales reached $11.7 billion, and total revenue grew 8% compared with 2024. The company delivered record annual earnings and cash flow, and management linked results to strong global demand.

GAAP fourth-quarter earnings per share reached $3.86, and that figure rose 8% year over year. Full-year GAAP earnings climbed to $12.75 per share, and earnings jumped 38% from the previous year. Non-GAAP earnings also improved, and fourth-quarter EPS reached $4.59 while annual EPS rose to $15.38.

Operating margins expanded during the quarter, and higher sales supported improved leverage across business lines. GAAP operating margin reached 27.9%, and non-GAAP margin increased to 32.1%. Growth came from favorable product mix, and higher tariffs partly offset those gains.

Software And Systems Segments Drive Broad Expansion

The products and systems integration segment generated $2.16 billion in quarterly sales, and revenue rose 11% from last year. Annual segment sales reached $7.25 billion, and that figure increased 5% year over year. Growth reflected demand for mission critical networks and video security systems.

The software and services segment posted $1.22 billion in quarterly sales, and revenue climbed 15% from the prior year. Full-year segment sales reached $4.43 billion, and revenue expanded 13% compared with 2024. Operating earnings in this segment rose sharply, and margins improved across recurring service contracts.

Cash generation strengthened during the quarter, and operating cash flow reached $1.3 billion. Full-year operating cash flow totaled $2.8 billion, and that result marked a 19% increase. Strong earnings supported liquidity, and the company funded dividends, buybacks, and acquisitions.

Backlog Surge And Capital Allocation Support Outlook

Motorola Solutions ended the year with a record backlog of $15.7 billion, up $1 billion from the prior year. The increase reflected strong order activity, and software services contributed most of the expansion. The backlog provided revenue visibility, and it reinforced long-term contract momentum.

During the quarter, the company repurchased $490 million in shares and paid $182 million in dividends. It also invested in acquisitions and capital projects, and management balanced debt repayment with expansion plans. These actions supported shareholder returns while maintaining operational flexibility.

Notable wins included large public safety network contracts in the United States and international system deployments. Service renewals and long-term infrastructure deals strengthened recurring revenue streams. These agreements expanded Motorola Solutions’ footprint, and they supported sustained demand entering 2026.

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