Motorola to Report Q4 Earnings: Can Strong Revenues Drive Growth?

Motorola Solutions, Inc. MSI is scheduled to report fourth-quarter 2025 results on Feb.11, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 5.45%. It pulled off a trailing four-quarter earnings surprise of 5.5%, on average, beating estimates in all the previous occasions.

The Chicago, IL-based company is expected to have reported year-over-year revenue growth, driven by steady demand across its core businesses, disciplined cost management, and diligent execution of operational plans.

Factors at Play

During the to-be-reported quarter, the launch of Silvus’ StreamCaster NEXUS strengthened Motorola’s tactical networking portfolio and is likely to have supported near-term revenues through early customer adoption, pilot deployments, and initial defense orders. 

During the fourth quarter, Motorola’s advancement of AI-assisted policing tools is likely to have supported near-term revenues by driving higher adoption of software subscriptions and upgrades from public safety agencies. Increased demand for AI-driven dispatch, reporting, and response solutions might have boosted the company’s bookings and recurring software revenues in the quarter.

The acquisition of Blue Eye adds AI-powered remote video monitoring services to its portfolio. Early cross-sell opportunities, subscription integrations, and new customer contracts can drive immediate bookings and recurring service revenues, supporting its software and services growth in the quarter. 

During the quarter, the U.S. Department of Defense's approval of the Silvus StreamCaster 4400 Enhanced MANET radio as a secure and reliable communication tool strengthens Motorola’s defense portfolio and supports near-term revenues by enabling participation in secure U.S. military drone programs. This certification might have driven early orders and contract activity from defense customers, generating revenues in the current quarter.

Riding on a strong product portfolio, ongoing investment in innovation and efficiency should have helped Motorola maintain healthy margins, supported by a strong order pipeline and improving market conditions.

Overall Expectations

The Zacks Consensus Estimate for the Products and Systems Integration segment’s revenues is pegged at $2.13 billion. The figure indicates a rise from $1.95 billion recorded in the year-ago quarter. The Zacks Consensus Estimate for the Services and Software segment’s revenues is pegged at $1.21 billion compared with $1.06 billion recorded in the year-earlier quarter. 

For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $3.34 billion, which indicates growth from the year-ago quarter’s reported figure of $3.01 billion. The consensus estimate for adjusted earnings per share is $4.36, up from $4.04, driven by top-line growth.

Earnings Whispers

Our proven model does not predict an earnings beat for Motorola for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% with both pegged at $4.36 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Motorola carries a Zacks Rank #2 at present. 

Motorola Solutions, Inc. Price and EPS Surprise

Motorola Solutions, Inc. price-eps-surprise | Motorola Solutions, Inc. Quote

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Akamai Technologies, Inc. AKAM is set to release its fourth-quarter 2025 numbers on Feb. 19. It has an Earnings ESP of +1.97% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for IPG Photonics Corporation IPGP is +15.08%, and it sports a Zacks Rank of 1 at present. The company is scheduled to report fourth-quarter 2025 numbers on Feb. 12.

The Earnings ESP for Applied Materials, Inc. AMAT is +2.99%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report first-quarter fiscal 2026 numbers on Feb. 12.

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This article originally published on Zacks Investment Research (zacks.com).

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