Revenue growth accelerated to 13.3% in 2026Q2 with gross margin expanding to 53.6%, but stock-based compensation surged 175% year-over-year to $204 million, potentially diluting EPS growth.
Motorola Solutions, Inc. (MSI) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 12.6B | 11.68B | 10.82B | 9.98B | 9.11B | 8.17B | 7.41B | 7.89B | 7.34B | 6.38B | 6.04B | 5.7B | 5.88B | 6.23B | 6.27B | 8.2B | 7.62B | 18.15B | 30.15B | 36.62B | 42.88B | 35.26B | 29.66B | 23.16B | 27.28B | 30.49B | 37.35B | 33.08B | 31.34B | 29.79B | 27.97B |
| Revenue Growth % | 11.4% | 8% | 8.41% | 9.5% | 11.52% | 10.21% | -6% | 7.41% | 15.09% | 5.66% | 6.02% | -3.16% | -5.56% | -0.67% | -23.58% | 7.69% | -58.03% | -39.8% | -17.68% | -14.59% | 21.6% | 18.88% | 28.11% | -15.12% | -10.52% | -18.37% | 12.91% | 5.54% | 5.19% | 6.51% | 3.46% |
| Cost of Goods Sold | 6.22B | 5.82B | 5.3B | 5.01B | 4.88B | 4.13B | 3.81B | 3.96B | 3.86B | 3.36B | 3.17B | 2.98B | 3.05B | 3.12B | 3.08B | 4.06B | 3.81B | 12.41B | 21.75B | 26.67B | 30.15B | 23.83B | 19.7B | 15.65B | 18.31B | 23.12B | 25.17B | 20.63B | 19.4B | 19.99B | 18.98B |
| COGS % of Revenue | - | 49.82% | 49.04% | 50.19% | 53.59% | 50.56% | 51.34% | 50.16% | 52.61% | 52.6% | 52.48% | 52.26% | 51.86% | 50.07% | 49.05% | 49.46% | 49.95% | 68.36% | 72.15% | 72.83% | 70.32% | 67.59% | 66.41% | 67.6% | 67.11% | 75.84% | 67.39% | 62.38% | 61.89% | 67.1% | 67.86% |
| Gross Profit | 6.38B | 5.86B | 5.51B | 4.97B | 4.23B | 4.04B | 3.61B | 3.93B | 3.48B | 3.02B | 2.87B | 2.72B | 2.83B | 3.11B | 3.19B | 4.15B | 3.81B | 5.74B | 8.39B | 9.95B | 12.73B | 11.43B | 9.96B | 7.5B | 8.97B | 7.37B | 12.18B | 12.44B | 11.94B | 9.8B | 8.99B |
| Gross Margin % | 50.62% | 50.18% | 50.96% | 49.81% | 46.41% | 49.44% | 48.66% | 49.84% | 47.39% | 47.4% | 47.52% | 47.74% | 48.14% | 49.93% | 50.95% | 50.54% | 50.05% | 31.64% | 27.85% | 27.17% | 29.68% | 32.41% | 33.59% | 32.4% | 32.89% | 24.16% | 32.61% | 37.62% | 38.11% | 32.9% | 32.14% |
| Gross Profit Growth % | - | 6.35% | 10.91% | 17.52% | 4.68% | 11.97% | -8.22% | 12.96% | 15.08% | 5.4% | 5.52% | -3.96% | -8.94% | -2.66% | -22.96% | 8.76% | -33.6% | -31.61% | -15.65% | -21.8% | 11.36% | 14.69% | 32.81% | -16.37% | 21.82% | -39.52% | -2.14% | 4.19% | 21.87% | 9.01% | -5.4% |
| Operating Expenses | 3.32B | 2.93B | 2.82B | 2.68B | 2.57B | 2.37B | 2.23B | 2.35B | 2.23B | 1.74B | 1.82B | 1.73B | 3.84B | 2.16B | 2.27B | 3.29B | 3.06B | 6.23B | 10.79B | 10.51B | 8.63B | 6.82B | 6.97B | 6.23B | 10.79B | 13.17B | 11.28B | 11.09B | 11.29B | 7.85B | 7.03B |
| OpEx % of Revenue | - | 25.06% | 26.11% | 26.82% | 28.18% | 29.04% | 30.01% | 29.8% | 30.3% | 27.27% | 30.16% | 30.29% | 65.24% | 34.72% | 36.27% | 40.08% | 40.19% | 34.35% | 35.78% | 28.68% | 20.14% | 19.35% | 23.51% | 26.91% | 39.54% | 43.19% | 30.21% | 33.53% | 36.02% | 26.36% | 25.14% |
| Selling, General & Admin | 1.94B | 1.87B | 1.75B | 1.56B | 1.45B | 1.35B | 1.29B | 1.4B | 1.25B | 1.02B | 1.04B | 1.02B | 1.18B | 1.33B | 1.47B | 1.91B | 1.87B | 3.06B | 4.33B | 5.09B | 4.5B | 3.63B | 3.51B | 3.29B | 4.47B | 4.92B | 5.73B | 5.22B | 5.81B | 5.51B | 4.71B |
| SG&A % of Revenue | - | 15.99% | 16.2% | 15.64% | 15.91% | 16.56% | 17.44% | 17.79% | 17.08% | 16.07% | 17.29% | 17.93% | 20.13% | 21.36% | 23.48% | 23.31% | 24.6% | 16.85% | 14.36% | 13.9% | 10.5% | 10.29% | 11.83% | 14.19% | 16.39% | 16.14% | 15.35% | 15.78% | 18.53% | 18.51% | 16.86% |
| Research & Development | 1.06B | 971M | 917M | 858M | 779M | 734M | 686M | 687M | 637M | 568M | 553M | 620M | 681M | 761M | 790M | 1.03B | 1.04B | 2.6B | 4.11B | 4.43B | 4.11B | 3.6B | 3.32B | 2.98B | 3.72B | 4.28B | 4.44B | 3.56B | 3.12B | 0 | 0 |
| R&D % of Revenue | - | 8.31% | 8.48% | 8.6% | 8.55% | 8.98% | 9.25% | 8.71% | 8.67% | 8.9% | 9.16% | 10.89% | 11.58% | 12.22% | 12.6% | 12.62% | 13.61% | 14.32% | 13.63% | 12.09% | 9.58% | 10.21% | 11.18% | 12.87% | 13.62% | 14.02% | 11.88% | 10.76% | 9.95% | - | - |
| Other Operating Expenses | 2M | 89M | 155M | 257M | 339M | 286M | 246M | 260M | 334M | 147M | 224M | 84M | 1.97B | 71M | 12M | 341M | 150M | 577M | 2.35B | 984M | 25M | -404M | 149M | -34M | 2.6B | 3.97B | 1.11B | 2.31B | 2.36B | 2.34B | 2.32B |
| Operating Income | 3.06B | 2.94B | 2.69B | 2.29B | 1.66B | 1.67B | 1.38B | 1.58B | 1.25B | 1.28B | 1.05B | 994M | -1.01B | 947M | 920M | 858M | 751M | -492M | -2.39B | -553M | 4.09B | 4.61B | 2.99B | 1.27B | -1.81B | -5.8B | 895M | 1.35B | 655M | 1.95B | 1.96B |
| Operating Margin % | 24.28% | 25.12% | 24.85% | 22.99% | 18.23% | 20.4% | 18.65% | 20.05% | 17.09% | 20.13% | 17.36% | 17.45% | -17.11% | 15.21% | 14.68% | 10.46% | 9.86% | -2.71% | -7.93% | -1.51% | 9.54% | 13.06% | 10.09% | 5.5% | -6.65% | -19.04% | 2.4% | 4.09% | 2.09% | 6.53% | 7.01% |
| Operating Income Growth % | - | 9.19% | 17.18% | 38.11% | -0.36% | 20.54% | -12.52% | 25.98% | -2.26% | 22.52% | 5.43% | 198.81% | -206.23% | 2.93% | 7.23% | 14.25% | 252.64% | 79.42% | -332.37% | -113.51% | -11.14% | 53.91% | 135.04% | 170.22% | 68.76% | -748.38% | -33.9% | 106.72% | -66.36% | -0.66% | -33.13% |
| EBITDA | 3.64B | 3.36B | 3.02B | 2.65B | 2.1B | 2.1B | 1.79B | 1.98B | 1.61B | 1.63B | 1.34B | 1.14B | -833M | 1.1B | 1.07B | 1.22B | 1.1B | 150M | -1.56B | 350M | 4.65B | 5.14B | 3.56B | 2.09B | 295M | -3.25B | 3.42B | 3.71B | 2.99B | 4.29B | 4.28B |
| EBITDA Margin % | 28.91% | 28.76% | 27.96% | 26.56% | 23.06% | 25.76% | 24.17% | 25.04% | 21.99% | 25.5% | 22.24% | 20.09% | -14.16% | 17.75% | 17.08% | 14.92% | 14.49% | 0.83% | -5.17% | 0.96% | 10.84% | 14.59% | 11.99% | 9.03% | 1.08% | -10.66% | 9.15% | 11.23% | 9.53% | 14.39% | 15.29% |
| EBITDA Growth % | 12.54% | 11.11% | 14.11% | 26.13% | -0.19% | 17.47% | -9.27% | 22.29% | -0.74% | 21.15% | 17.4% | 237.33% | -175.38% | 3.17% | -12.5% | 10.87% | 636% | 109.62% | -545.71% | -92.47% | -9.62% | 44.6% | 70.16% | 608.81% | 109.07% | -195.14% | -8% | 24.38% | -30.33% | 0.23% | -12.05% |
| D&A (Non-Cash Add-back) | 584M | 425M | 336M | 356M | 440M | 438M | 409M | 394M | 360M | 343M | 295M | 150M | 173M | 158M | 151M | 366M | 353M | 642M | 831M | 903M | 558M | 540M | 566M | 818M | 2.11B | 2.55B | 2.52B | 2.36B | 2.33B | 2.34B | 2.32B |
| EBIT | 3.18B | 3.07B | 2.27B | 2.4B | 1.75B | 1.77B | 1.41B | 1.24B | 1.34B | 1.29B | 1.07B | 1.1B | -1.01B | 1.01B | 989M | 870M | 881M | -292M | -2.41B | -167M | 4.09B | 4.61B | 2.97B | 1.33B | -49M | -3.94B | 1.49B | 1.42B | 764M | 1.95B | 1.96B |
| Net Interest Income | -429M | -307M | -227M | -216M | -226M | -208M | -220M | -220M | -222M | -201M | -205M | -173M | -126M | -113M | -66M | -74M | -129M | -132M | 48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 29M | 58M | 68M | 33M | 14M | 7M | 13M | 17M | 18M | 14M | 20M | 13M | 21M | 19M | 42M | 58M | 88M | 79M | 272M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 458M | 365M | 295M | 249M | 240M | 215M | 233M | 237M | 240M | 215M | 225M | 186M | 147M | 132M | 108M | 132M | 217M | 211M | 224M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -338M | -122M | -716M | -148M | -146M | -115M | -209M | -580M | -153M | -208M | -204M | -77M | -155M | -67M | -39M | -120M | -87M | -11M | -242M | 163M | 518M | 1.81B | 120M | 103M | -1.63B | 292M | 1.34B | -71M | -1.94B | -131M | -185M |
| Pretax Income | 2.72B | 2.81B | 1.97B | 2.15B | 1.51B | 1.55B | 1.17B | 1B | 1.1B | 1.08B | 844M | 917M | -1.16B | 880M | 881M | 738M | 664M | -503M | -2.63B | -390M | 4.61B | 6.41B | 3.11B | 1.38B | -3.45B | -5.51B | 2.23B | 1.28B | -1.28B | 1.82B | 1.77B |
| Pretax Margin % | 21.6% | 24.08% | 18.23% | 21.51% | 16.63% | 18.99% | 15.83% | 12.69% | 15.01% | 16.87% | 13.98% | 16.1% | -19.74% | 14.13% | 14.05% | 9% | 8.72% | -2.77% | -8.73% | -1.06% | 10.75% | 18.18% | 10.49% | 5.94% | -12.63% | -18.08% | 5.97% | 3.88% | -4.08% | 6.1% | 6.35% |
| Income Tax | 632M | 652M | 390M | 432M | 148M | 302M | 221M | 130M | 133M | 1.23B | 282M | 274M | -465M | -59M | 211M | -3M | 403M | -159M | 1.61B | -285M | 1.35B | 1.89B | 1.01B | 448M | -961M | -1.57B | 913M | 392M | -373M | 636M | 621M |
| Effective Tax Rate % | 23.22% | 23.18% | 19.78% | 20.13% | 9.77% | 19.46% | 18.82% | 12.99% | 12.07% | 114.03% | 33.41% | 29.88% | 40.05% | -6.7% | 23.95% | -0.41% | 60.69% | 31.61% | -61.03% | 73.08% | 29.26% | 29.52% | 32.55% | 32.56% | 27.89% | 28.56% | 40.92% | 30.55% | 29.14% | 35.02% | 34.99% |
| Net Income | 2.08B | 2.15B | 1.58B | 1.71B | 1.36B | 1.25B | 949M | 868M | 966M | -155M | 560M | 610M | 1.3B | 1.1B | 881M | 1.16B | 633M | -51M | -4.24B | -49M | 3.66B | 4.58B | 1.53B | 893M | -2.48B | -3.94B | 1.32B | 817M | -962M | 1.18B | 1.15B |
| Net Margin % | 16.54% | 18.44% | 14.58% | 17.13% | 14.96% | 15.24% | 12.8% | 11.01% | 13.16% | -2.43% | 9.27% | 10.71% | 22.09% | 17.65% | 14.05% | 14.12% | 8.31% | -0.28% | -14.08% | -0.13% | 8.54% | 12.98% | 5.16% | 3.86% | -9.11% | -12.91% | 3.53% | 2.47% | -3.07% | 3.96% | 4.13% |
| Net Income Growth % | -1.51% | 36.59% | -7.72% | 25.39% | 9.48% | 31.19% | 9.33% | -10.14% | 723.23% | -127.68% | -8.2% | -53.04% | 18.2% | 24.74% | -23.92% | 82.94% | 1341.18% | 98.8% | -8561.22% | -101.34% | -20.03% | 198.83% | 71.56% | 135.94% | 36.88% | -398.71% | 61.32% | 184.93% | -181.53% | 2.25% | -35.2% |
| Net Income (Continuing) | 2.09B | 2.16B | 1.58B | 1.71B | 1.37B | 1.25B | 953M | 871M | 969M | -151M | 562M | 643M | -696M | 939M | 670M | 741M | 261M | -344M | -4.24B | -105M | 3.26B | 4.52B | 2.1B | 928M | -2.48B | -3.94B | 1.32B | 891M | -907M | 1.18B | 1.15B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -30M | 2B | 166M | 3M | 411M | 379M | 0 | 0 | 0 | 400M | 59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 17M | 17M | 16M | 15M | 15M | 17M | 17M | 17M | 17M | 15M | 12M | 10M | 31M | 30M | 25M | 60M | 102M | 108M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 485M | 485M | 484M | 0 | 0 | 0 |
| EPS (Diluted) | 12.45 | 12.76 | 9.23 | 9.93 | 7.93 | 7.17 | 5.45 | 4.94 | 5.62 | -0.95 | 3.24 | 3.02 | 5.29 | 4.06 | 2.96 | 3.41 | 1.87 | -0.16 | -13.11 | -0.15 | 10.22 | 12.67 | 4.38 | 2.66 | -7.62 | -12.45 | 4.06 | 2.87 | -3.25 | 4.55 | 4.41 |
| EPS Growth % | -0.24% | 38.24% | -7.05% | 25.22% | 10.6% | 31.56% | 10.32% | -12.1% | 691.58% | -129.32% | 7.28% | -42.91% | 30.3% | 37.16% | -13.2% | 82.35% | 1268.75% | 98.78% | -8640% | -101.47% | -19.34% | 189.27% | 64.66% | 134.91% | 38.8% | -406.65% | 41.46% | 188.31% | -171.43% | 3.17% | -44.25% |
| EPS (Basic) | - | 12.93 | 9.45 | 10.23 | 8.14 | 7.36 | 5.58 | 5.21 | 5.62 | -0.95 | 3.30 | 3.06 | 5.29 | 4.13 | 3.01 | 3.47 | 1.90 | -0.16 | -13.11 | -0.15 | 10.50 | 12.95 | 4.38 | 2.67 | -7.65 | -12.50 | 4.21 | 3.39 | -3.75 | 4.62 | 4.55 |
| Diluted Shares Outstanding | 167.4M | 168.1M | 170.8M | 172.1M | 171.9M | 173.6M | 174.1M | 175.6M | 172M | 162.9M | 173.1M | 201.8M | 245.6M | 270.5M | 297.4M | 339.7M | 338.12M | 327.94M | 323.63M | 330.39M | 357.74M | 361M | 353.14M | 335.89M | 326.04M | 316.19M | 322.37M | 314.57M | 295.87M | 259.34M | 261.68M |
| Basic Shares Outstanding | 165.5M | 166.2M | 166.8M | 167M | 167.5M | 169.2M | 170M | 166.6M | 171.89M | 162.9M | 169.6M | 199.6M | 245.42M | 266M | 292.1M | 333.8M | 333.32M | 327.94M | 323.63M | 330.39M | 349.47M | 353.04M | 335.66M | 331.17M | 324.93M | 314.96M | 309.16M | 259.5M | 256.54M | 255.41M | 253.63M |
| Dividend Payout Ratio | - | 33.8% | 41.47% | 34.46% | 38.88% | 38.71% | 45.94% | 43.66% | 34.89% | - | 50% | 45.41% | 24.48% | 26.57% | 30.65% | 6.22% | 18.01% | - | - | - | 12.1% | 8.61% | 24.67% | 41.66% | - | - | 25.27% | 35.62% | - | 24.24% | 22.62% |
Quick answers to the most common questions about buying MSI stock.
For fiscal year 2025, Motorola Solutions, Inc. (MSI) reported total revenue of $11.68B. This represents a 58.2% decline compared to $27.97B in 1996.
Motorola Solutions, Inc. (MSI) is profitable, generating $2.15B in net income for the fiscal year ending 2025 with a net profit margin of 18.4%.
Motorola Solutions, Inc. (MSI) reported an operating income of $2.94B, resulting in an operating profit margin of 25.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Motorola Solutions, Inc. (MSI) generated $5.86B in gross profit for the year, representing a gross profit margin of 50.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
SBC dilution and margin sustainability
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates
MSI's revenue growth accelerated to 13.3% in 2026Q2, up from 5.2% a year earlier, according to the latest quarterly report, signaling strengthening demand across its portfolio.
The 13.3% year-over-year revenue growth in 2026Q2 marks a clear acceleration from the 5.2% growth in 2025Q2, suggesting that the company is gaining traction in its end markets. This acceleration is broad-based, with sequential growth from 2026Q1's 7.4% to 13.3%, indicating a strengthening demand environment. The durability of this growth will depend on whether it is driven by volume or pricing, but the consistent upward trend across the last four quarters points to a sustainable momentum.
Gross Margin Expansion Drives Profitability
Gross margin improved to 53.6% in 2026Q2, up from 51.1% in the year-ago quarter, as reported in the income statement, reflecting favorable product mix and pricing power.
The 250 basis point year-over-year expansion in gross margin to 53.6% in 2026Q2 indicates that MSI is successfully managing its cost structure and benefiting from a richer product mix. This margin expansion is a key driver of the company's strong profitability, with operating margin also improving to 25.8% from 25.0% in the prior year. The sustainability of these margins will be tested by competitive pressures and input costs, but the current trajectory suggests robust pricing power relative to peers.
Operating Leverage Amplifies Earnings
Operating income grew 16.9% year-over-year in 2026Q2, outpacing revenue growth of 13.3%, as per the latest financials, demonstrating strong operating leverage.
The fact that operating income growth (16.9%) exceeded revenue growth (13.3%) in 2026Q2 indicates that MSI is scaling its operations efficiently, with SG&A and R&D expenses growing at a slower pace than revenue. This operating leverage is a positive signal for future earnings potential, as incremental revenue is translating into higher operating margins. However, investors should monitor whether this efficiency can be maintained as the company continues to invest in growth initiatives.
SBC Dilution Tempers EPS Growth
Stock-based compensation surged to $204 million in 2026Q2, up from $74 million a year earlier, according to the income statement, potentially diluting EPS growth.
The sharp increase in SBC to $204 million in 2026Q2, representing a 175% year-over-year jump, raises concerns about earnings quality and shareholder dilution. While EPS grew 9.5% in the quarter, this growth would have been higher without the SBC impact. The elevated SBC levels may indicate that the company is using equity compensation to attract talent, but investors should monitor the dilution effect on future EPS and the alignment with shareholder value creation.
R&D Investment Accelerates
R&D spending rose to $260 million in 2026Q2, up 12.6% year-over-year, as reported in the financials, reflecting increased investment in innovation.
The 12.6% increase in R&D spending in 2026Q2, outpacing the 13.3% revenue growth, indicates that MSI is prioritizing innovation to drive future growth. This investment is likely focused on next-generation technologies and could support the company's competitive position. However, the rising R&D costs, combined with higher SBC, may pressure near-term margins if revenue growth does not keep pace.
Margin Sustainability and Dilution Risks
Despite strong margins, the 250 bps gross margin expansion and 175% SBC surge in 2026Q2, per the income statement, may not be sustainable, posing risks to earnings quality.
Short-sellers might argue that the gross margin expansion to 53.6% is unsustainable, as it may be driven by one-time factors or favorable mix that could reverse. Additionally, the significant increase in SBC to $204 million in 2026Q2 could signal that reported earnings are overstated, as the true cost of equity compensation is not fully reflected in net income. If revenue growth decelerates or margins revert to historical levels, the stock could face downward pressure. Investors should closely monitor these metrics in upcoming quarters.