Motorola Solutions Posts Record Results and Sets Ambitious 2026 Targets

Motorola Solutions has capped off its 2025 fiscal year with unprecedented financial performance, setting new highs for both revenue and profit. The company?s leadership is entering the new year with confidence, fueled by robust demand for its security software portfolio and an all-time high backlog of orders. The critical question for investors is whether this substantial foundation will be sufficient to meet the elevated market expectations for 2026.

The company?s final quarter results for 2025 significantly outpaced analyst forecasts. Revenue for the period advanced by 12%, reaching approximately $3.4 billion. This strong finish contributed to a full-year revenue total of $11.7 billion. Perhaps more impressively, the firm demonstrated remarkable efficiency, achieving a record full-year adjusted operating margin of 30.3%.

Profitability metrics were equally strong. Adjusted earnings per share (EPS) for Q4 came in at $4.59, bringing the annual figure to $15.38. This growth was primarily driven by the above-average expansion within the software and services segment, underscoring a successful strategic shift.

Unprecedented Order Backlog Provides Visibility

A cornerstone of the company?s optimistic outlook is its record-breaking order backlog. By the close of 2025, this backlog had grown by $1 billion to reach $15.7 billion. This substantial pipeline offers significant visibility and planning certainty for the 2026 fiscal year, for which management has projected annual revenue of about $12.7 billion.

Furthermore, the company has provided specific EPS guidance for 2026, targeting a range between $16.70 and $16.85 on an adjusted basis. Cash generation remains a key strength. Following an operating cash flow of $2.8 billion in the prior year, Motorola Solutions anticipates a further increase to around $3.0 billion in 2026.

Should investors sell immediately? Or is it worth buying Motorola?

Strategic Positioning in a Growing Market

The company?s growth is supported by sustained public sector investment in safety and security technologies worldwide. Government agencies are modernizing communication networks and increasing budgets for video surveillance and command center software. Motorola Solutions is strategically focusing on artificial intelligence (AI)-enhanced solutions within this space to improve the efficiency of threat detection and response.

Shareholders are directly benefiting from the robust cash flow. In the fourth quarter alone, the company allocated $490 million to share repurchases and distributed $182 million in dividend payments. The quarterly dividend was also recently raised to $1.21 per share.

Industry forecasts suggest the global market for public safety technology will expand to roughly $784 billion by the end of 2026. Motorola Solutions is positioning itself to capture this opportunity by integrating its hardware offerings with comprehensive AI-powered software platforms. With a clear adjusted EPS target of up to $16.85, management has set a definitive benchmark for the performance of the current fiscal year.

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