Motorola Solutions Reports Robust Q3 Driven by Software and Services Growth
Highlights
- Revenue: $8% growth in Q3
- Software and services revenue: 11% growth
- Products and SI revenue growth: 6%
- Operating margins: Expanded by 80 basis points
- Record Q3 operating cash flow: Nearly $800 million
- Record Q3 ending backlog: $14.6 billion, up $467 million YoY
- Orders and revenue growth in all segments
- Non-GAAP operating earnings: $918 million, up 11%
- Non-GAAP EPS: $4.06, up 9% YoY
- International revenue: $888 million, up 13% YoY
- Cash flow from operations: Record $799 million
The third quarter of 2025 has brought good news for Motorola Solutions, as the company reported strong earnings and substantial growth across various segments. Their revenue rose by an impressive 8%, exceeding guidance, largely bolstered by an 11% upswing in the software and services vertical, alongside demonstrable growth in products and SI, which climbed by 6%.
The company's efforts in expanding operating margins were met with success, increasing by 80 basis points, while Q3 also saw record operational cash flows nearing $800 million. The backlog has reached noteworthy levels, closing the quarter at $14.6 billion, marking an increase of $467 million compared to the previous year.
Motorola Solutions' operating earnings boasted a significant rise as well. Non-GAAP operating earnings increased 11% to $918 million. Earnings per share on a non-GAAP basis grew by 9% to $4.06, reinforcing the company's steady climb in profitability.
A standout performance was seen in international markets, with revenue up by 13%, contributing $888 million to the quarterly results. This should give investors a promising outlook on the company’s global reach and expansion strategy.
Cash flow, always a critical measure of a company's financial health, was impressive, with a record $799 million generated from operations, illustrating robust earnings performance throughout this period.
This combination of strong revenue, increased earnings, and solid cash flow exemplifies Motorola Solutions' successful strategic execution in expanding their software and services domain, augmented by a powerful financial and operational foundation as they progress into the next fiscal periods.