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 (Basic)
$12.93
++36.83% YoY
Gross Margin
51.7%
++0.70% YoY
Operating Income
$2.99B
++11.16% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K 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: 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: 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: Source: 10-K Cash Flow Statement
2 more insights available
Upgrade to unlockLong-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: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $4.59 versus the $4.39 analyst consensus — a +4.6% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $11.68B | $10.82B | +8.00% |
Cost of Revenue | $5.65B | $5.3B | +6.45% |
Gross Profit | $6.04B | $5.51B | +9.49% |
Operating Income | $2.99B | $2.69B | +11.16% |
Net Income | $2.15B | $1.58B | +36.59% |
EPS (Basic) | $12.93 | $9.45 | +36.83% |
EPS (Diluted) | $12.75 | $9.23 | +38.14% |
R&D Expense | $970M | $917M | +5.78% |
SG&A Expense | $1.87B | $1.75B | +6.74% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $19.39B | $14.6B | +32.85% |
Current Assets | $6.3B | $6.48B | -2.76% |
Current Liabilities | $6.08B | $5.05B | +20.24% |
Stockholders' Equity | $2.41B | $1.7B | +41.51% |
Cash & Equivalents | $1.17B | $2.1B | -44.58% |
Long-Term Debt | $8.41B | $5.67B | +48.25% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.84B | $2.39B | +18.65% |
Investing Cash Flow | $-5.16B | $-507M | -918.54% |
Financing Cash Flow | $1.31B | $-1.45B | +190.40% |
Share Buybacks | $1.15B | $244M | +372.95% |
D&A | $425M | $336M | +26.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 51.7% | 51.0% | +0.70% |
Operating Margin | 25.6% | 24.8% | +0.73% |
Net Margin | 18.4% | — | — |
ROE | 89.4% | — | — |
ROA | 11.1% | — | — |
Current Ratio | $1.037 | — | — |
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MSI grew revenue 8.0% to $11.68B in FY2025, while net income surged 36.6% to $2.15B. Diluted EPS rose 38.1% to $12.75, partly aided by a significant increase in share buybacks totaling $1.15B during the year.
The key takeaways are strong profitability growth with net income up 36.6%, margin expansion with gross margin at 51.7% and operating margin at 25.6%, and a major strategic investment that drove investing cash outflows to -$5.16B and long-term debt up 48.2% to $8.41B. Total assets grew 32.8% to $19.39B, signaling a significant business expansion.
Based on the financial data, the most prominent risks include elevated financial leverage with long-term debt of $8.41B against equity of only $2.41B, a tight current ratio of 1.04 indicating limited short-term liquidity, and significant integration risk from what appears to be a major acquisition reflected in -$5.16B of investing cash outflows. Cash and equivalents also declined 44.6% to $1.17B.
MSI's long-term debt rose 48.2% to $8.41B in FY2025, coinciding with investing cash outflows of -$5.16B (compared to only -$507M the prior year), strongly suggesting the company made a large acquisition or major capital investment. Financing cash flows turned positive at $1.31B, confirming new debt was raised to fund this activity.
MSI's profitability and cash generation are strong, with operating cash flow of $2.84B and net margins of 18.4%, but its balance sheet carries elevated risk with a high debt load of $8.41B, a thin current ratio of 1.04, and cash that declined 44.6% to $1.17B. The company's ability to service its debt and integrate its new investments will be key factors to watch going forward.