NYSE$MSI

Motorola Solutions, Inc. · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Motorola reported strong Q4 2024 growth with increased revenue, higher EPS, and record backlog.

Motorola Solutions delivered a solid Q4 2024, with revenue rising 6% YoY to $3.01 billion. Growth was driven by strong demand in North America and a significant 11% increase in Software & Services. Operating margin improved, and the company ended the quarter with a record $14.7 billion backlog, positioning it for continued growth in 2025.

  • Revenue increased 6% YoY to $3.01 billion.
  • Software & Services grew 11% YoY, outpacing other segments.
  • Record backlog of $14.7 billion, up 3% YoY.
  • Operating margin improved to 27.0%, driven by strong sales and cost efficiencies.

Headline financials

Total Revenue

$3.01B

Previous: $2.85B+5.7%
EPS (adj)

$4.04

Previous: $3.90+3.6%
GAAP Operating Margin

27.0%

Previous: 25.9%+4.2%
GAAP Effective Tax Rate

22.2%

Previous: 15.7%+41.4%
Ending Backlog

$14.7B

No prior period
Capital Expenditures

-$86M

Previous: -$81M-6.2%
Net Income

$611M

Previous: $596M+2.5%
Operating Income

$814M

Previous: $738M+10.3%
Gross Profit

$1.55B

Previous: $1.46B+6.5%
R&D Expense

$246M

No prior period

Revenue & EPS history

Motorola · Revenue · Quarterly

$3.01B

Q4 2024+5.7%vs Q4 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Motorola · $2.56B total across 2 segments · Q3 2023

  • Products & Systems Integration
    $1.61B+5.4%
  • Software & Services
    $944M+11.8%

Forward guidance

Motorola expects continued growth in 2025, with revenue projected to increase by approximately 5.5% and non-GAAP EPS between $14.64 and $14.74. The company sees strong demand across its portfolio, particularly in software and AI-driven solutions.

Tailwinds

  • Expected revenue growth of 5.0%-5.5% in Q1 2025.
  • Non-GAAP EPS guidance for Q1 2025 set at $2.98 - $3.03.
  • Full-year 2025 revenue forecasted to grow ~5.5%.
  • Strategic acquisitions, including Theatro, to enhance AI capabilities.
  • Continued strength in backlog supports long-term growth.

Headwinds

  • Foreign exchange headwinds expected to impact revenue by $120 million in 2025.
  • Higher tax rate projected at approximately 23% for full-year 2025.
  • Ongoing litigation in the UK related to Airwave contract.
  • Potential higher employee incentive costs affecting margins.
  • Increased competition in the software and AI communication market.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.9%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+4.2%

Avg return

30 days after

59%

43 / 73 earnings

Positive

+12.4%

Q4 2018

Best reaction

-9.3%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.1%-8.7%-5.2%
Q4 2025+7.7%+8.7%+12.3%
Q3 2025-9.3%-8.7%-14.4%
Q2 2025+1.9%+5.6%+7.6%
Q1 2025-7.6%-5.5%-5.4%
Q4 2024-6.0%-5.8%-10.3%
Q3 2024+7.6%+6.0%+4.4%
Q2 2024+2.9%+1.0%+10.8%
Q1 2024+5.3%+6.6%+8.6%
Q4 2023+0.9%-2.7%+2.3%
Q3 2023+6.7%+8.7%+16.0%
Q2 2023-3.1%-3.4%-1.4%
Q1 2023-2.4%-0.7%-2.0%
Q4 2022+5.2%+4.8%+1.3%
Q3 2022+6.2%+7.0%+13.7%
Q2 2022+4.9%+4.5%+2.2%
Q1 2022+6.6%+5.7%+3.6%
Q4 2021-6.1%-9.6%-6.2%
Q3 2021-2.1%-1.3%-1.8%
Q2 2021+2.6%+3.1%+9.9%
Q1 2021+7.2%+8.6%+13.0%
Q4 2020+1.5%+2.1%-0.3%
Q3 2020-3.9%+0.9%+5.5%
Q2 2020+4.3%+3.3%+10.6%
Q1 2020-3.0%-3.0%+15.2%
Q4 2019+1.6%+4.4%-0.4%
Q3 2019+1.0%-2.5%+1.5%
Q2 2019+2.5%+3.4%+9.0%
Q1 2019+0.6%-0.7%+5.1%
Q4 2018+12.4%+13.9%+15.3%
Q3 2018+5.1%+2.7%+7.1%
Q2 2018-2.7%+0.1%+6.2%
Q1 2018+0.4%+0.2%+1.4%
Q4 2017+4.4%+3.3%+6.9%
Q3 2017+4.1%+1.7%+2.7%
Q2 2017-0.1%-2.0%-2.8%
Q1 2017-2.2%-1.9%+0.3%
Q4 2016+2.0%-3.4%+0.6%
Q3 2016+6.1%+9.8%+11.1%
Q2 2016+6.1%+7.2%+12.5%
Q1 2016-5.0%
Q4 2015+7.2%
Q3 2015-5.5%
Q2 2015+5.9%
Q1 2015+2.4%
Q4 2014-0.0%
Q3 2014-0.3%
Q2 2014-4.5%
Q1 2014+3.0%
Q4 2013-2.6%
Q3 2013+3.4%
Q2 2013+0.7%
Q1 2013-8.7%
Q4 2012+0.9%
Q3 2012+0.5%
Q2 2012+4.8%
Q1 2012-0.0%
Q4 2011+3.0%
Q3 2011+3.6%
Q2 2011+1.3%
Q1 2011-0.2%
Q4 2010-2.3%
Q3 2010+0.4%
Q2 2010-0.7%
Q1 2009-3.2%
Q1 2010+1.4%
Q4 2009-0.6%
Q3 2009+2.5%
Q3 2008+2.5%
Q2 2009-2.5%
Q2 2008-2.5%
Q4 2007-2.5%
Q4 2008-2.5%

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