Revenue and Profit Growth
MSI grew total revenue 8.0% year-over-year to $11.68B in FY2025, while net income surged 36.6% to $2.15B, reflecting strong operational leverage and improved profitability across the business.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
MSI delivered strong FY2025 results with revenue growing 8.0% to $11.68B and net income surging 36.6% to $2.15B, while significantly expanding its balance sheet through a $8.41B long-term debt load tied to heavy investing activity.
Revenue
$11.68B
+8.00% YoY
EPS (Diluted)
$12.75
+38.14% YoY
Gross Margin
51.7%
+0.7 pts YoY
Operating Income
$2.99B
+11.16% YoY
Source: SEC XBRL
Motorola Solutions (MSI) reported FY2025 revenue of $11.68B, up 8.0% year over year. Operating margin was 25.6%, up 0.8 points from 24.8% a year earlier. Operating cash flow was $2.84B, up 18.7% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 4.41 | 3.89 | Beat +13.4% |
| Mar 2026 | 3.37 | 3.28 | Beat +2.8% |
| Dec 2025This filing | 4.59 | 4.39 | Beat +4.6% |
| Sep 2025 | 4.06 | 3.89 | Beat +4.4% |
Reported EPS of $4.59 versus the $4.39 analyst consensus — a +4.6% beat for Dec 2025.
Compiled by AI from this SEC filing
MSI grew total revenue 8.0% year-over-year to $11.68B in FY2025, while net income surged 36.6% to $2.15B, reflecting strong operational leverage and improved profitability across the business.
Source: 10-K Income Statement
Gross margin improved modestly to 51.7% (from 51.0%), and operating margin expanded to 25.6% (from 24.8%), demonstrating disciplined cost management even as R&D and SG&A spending grew at a slower pace than revenue.
Source: 10-K Income Statement / Key Ratios
Investing cash outflows surged to -$5.16B in FY2025 from -$507M in the prior year, a 918.5% increase, suggesting a major acquisition or capital deployment event that drove total assets up 32.8% to $19.39B.
Source: 10-K Cash Flow Statement
Long-term debt rose 48.2% to $8.41B, and financing cash flows turned positive at $1.31B (vs. -$1.45B prior year), indicating MSI raised substantial new debt to fund its large investing activities during FY2025.
Source: 10-K Balance Sheet / Cash Flow Statement
Despite heavy capital deployment, MSI repurchased $1.15B in shares during FY2025, a 373% increase from $244M in the prior year, signaling management confidence in the company's long-term value.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Long-term debt increased 48.2% to $8.41B in FY2025, significantly increasing MSI's financial leverage. This elevated debt load raises interest expense risk and could constrain financial flexibility if business conditions deteriorate. The debt-to-equity ratio is high given stockholders' equity of only $2.41B.
Source: 10-K Balance Sheet
Cash and equivalents fell 44.6% to $1.17B from $2.10B in the prior year, driven by heavy investing and buyback activity. With current liabilities of $6.08B and a current ratio of just 1.04, MSI's liquidity buffer is thin and leaves limited room for unexpected cash needs.
Source: 10-K Balance Sheet / Key Ratios
The dramatic increase in investing cash outflows (-$5.16B vs. -$507M prior year) suggests a major acquisition or capital commitment. Large acquisitions carry significant integration, operational, and financial risks that could impact future earnings if synergies are not realized.
Source: 10-K Cash Flow Statement
Current liabilities grew 20.2% to $6.08B while current assets declined 2.8% to $6.30B, resulting in a current ratio of just 1.04. This narrow liquidity cushion means MSI has limited short-term financial flexibility and could face pressure if receivables or inventory cycles lengthen.
Source: 10-K Balance Sheet / Key Ratios
R&D expenses reached $970M (+5.8%) and SG&A expenses reached $1.87B (+6.7%) in FY2025, together representing a significant portion of revenue. While growth was slower than revenue, sustained investment is necessary to maintain competitive positioning, and any revenue slowdown could compress margins.
Source: 10-K Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 11.68 $B | 10.82 $B | +8.00% |
Cost of Revenue $B | 5.65 $B | 5.31 $B | +6.45% |
Gross Profit $B | 6.04 $B | 5.51 $B | +9.49% |
Operating Income $B | 2.99 $B | 2.69 $B | +11.16% |
Net Income $B | 2.15 $B | 1.58 $B | +36.59% |
EPS (Basic) $ | 12.93 $ | 9.45 $ | +36.83% |
EPS (Diluted) $ | 12.75 $ | 9.23 $ | +38.14% |
R&D Expense $M | 970.00 $M | 917.00 $M | +5.78% |
SG&A Expense $B | 1.87 $B | 1.75 $B | +6.74% |
Answers draw on this SEC filing and the data on this page
Revenue grew 13% to $3.1 billion in Q2 FY2026 on broad-based demand and acquisitions, but higher interest and amortization costs restrained net income growth to 8.6%.
MSI reported Q1 FY2026 revenue growth of 7.4% to $2.71B, but profitability declined sharply with net income falling 14.9% to $366M as higher costs, increased debt from a major acquisition, and margin compression weighed on results.
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