Motorola Solutions, Inc.

The Software and Services segment backlog reached a record $10.7B in FY2025 against $4.4B of segment revenue, providing more than two years of contractual coverage via multi-year government CAD, 911, and managed-service agreements. Total company backlog of $15.7B is robust, though the 62% Products segment remains order-driven and less predictable.

Revenue spans Mission Critical Networks, Video Security and Access Control, and Command Center software, but all three pillars serve the same public safety and government end market. The Silvus acquisition adds defense and unmanned systems exposure, though the combined portfolio remains concentrated within a single end-market ecosystem.

North America generated $8.36B of FY2025 revenue (roughly 72%), with international at $3.32B (28%), a split that has been broadly stable in recent years. U.S. federal, state, and local budget dependency creates concentrated macro exposure that international growth at 11% in FY2025 has not yet materially offset.

The Software and Services segment, which grew 15% in FY2025, carries structurally higher margins than the hardware-intensive Products segment, and non-GAAP operating margin reached a record 32.1% in Q4 2025. Rising software and services mix provides incremental operating leverage, though the 62% Products segment limits full software-like margin economics.

Software and Services (38% of FY2025 revenue) consists of multi-year contractual recurring revenue covering mission-critical applications including CAD, 911 call handling, and managed LMR networks. The 62% Products segment involves mission-critical hardware builds that are stickier than typical industrial transactions but are project-driven rather than truly recurring.