Gross margins have experienced a notable contraction, falling from a peak of 51.4% in early 2024 to 47.4% as of 2026Q1, suggesting potential pressure from rising input costs or product mix shifts.
| 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 | 11.87B | 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 % | 8.31% | 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 | 6.02B | 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 | 5.85B | 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 % | 49.28% | 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 | 2.9B | 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 | 1.87B | 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 | 990M | 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 | 1000K | 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 | 2.95B | 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 % | 24.84% | 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 | 3.48B | 3.39B | 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 % | 29.28% | 28.98% | 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 % | 12.64% | 11.97% | 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) | 527M | 451M | 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 | 3.05B | 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 | -360M | -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 | 47M | 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 | 407M | 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 | -241M | -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 | 2.71B | 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 % | 22.81% | 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 | 610M | 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 % | 22.53% | 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 | 2.09B | 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 % | 17.61% | 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 % | 2.15% | 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) | 2.1B | 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 | 19M | 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) | 12.44 | 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 % | 3.59% | 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 | 168M | 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 | 165.8M | 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% |
Cyclical Hardware Revenue Exposure
According to the provided quarterly income statements, MSI's revenue growth has fluctuated between 5.2% and 12.3% over the last ten quarters, suggesting that while the company maintains a consistent baseline, its top-line trajectory remains sensitive to the timing of large-scale project deployments and municipal budget cycles.
The revenue profile appears to be heavily influenced by the lumpy nature of systems integration contracts, which can cause significant quarter-over-quarter variance. Investors should monitor whether the recent 7.4% growth in 2026Q1 represents a normalization of demand or a potential deceleration in the adoption of new mission-critical software platforms.
As reported in financial statements, MSI's gross margin has experienced a noticeable contraction, falling from a peak of 51.4% in early 2024 to 47.4% in 2026Q1, which may indicate rising input costs or a shift in the product mix toward lower-margin hardware offerings.
This downward trend in gross profitability suggests that the company's pricing power may be facing pressure, potentially from increased competition or higher component costs within the PSI segment. If this margin erosion persists, it could undermine the thesis that the software-heavy service model will structurally improve long-term profitability.
Based on MSI's reported figures, stock-based compensation has steadily climbed from $52 million in 2023Q4 to $100 million in 2026Q1, representing a significant and growing non-cash expense that investors should account for when evaluating the true quality of the company's net income and EPS growth.
The consistent increase in SBC suggests an aggressive compensation strategy that may be masking the true operational cost of talent acquisition and retention. Analysts should consider adjusting earnings metrics to reflect this dilution, as the rising expense could continue to weigh on net margins if not offset by substantial operating leverage.
Data from the income statement indicates that SG&A expenses have risen to $439 million in 2026Q1, reflecting a persistent investment in the company's global service infrastructure and sales force that appears to be scaling in tandem with revenue rather than providing significant operating leverage.
While R&D spending remains relatively stable, the upward trajectory of SG&A suggests that maintaining the company's proprietary ecosystem requires a high and growing level of overhead. This cost structure warrants further investigation to determine if the company can achieve better efficiency as its software-as-a-service revenue base matures.
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.