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- **Revenue Growth & Backlog**: 8% Q3 revenue growth, $14.6 billion record backlog, and 11%+ software/services growth highlight strong demand. Silvus adds $123 million, with 2026 EPS accretion of $0.30-$0.40.
- **Financial Strength**: Non-GAAP EPS up 9% to $4.60, operating margin 30.5%, and $799 million operating cash flow. Full-year EPS guidance raised to $15.09-$15.15.
- **Silvus Momentum**: Exceeding targets with $500 million+ 2025 revenue, 20%+ 2026 growth, and SVX adoption by 70+ agencies. AI-assisted features drive defense and public safety innovation.
- **Resilience to Risks**: Minimal impact from government shutdown; 2026 guidance assumes $12.6 billion revenue despite potential delays. Tariff mitigation strategies support margin expansion.

**【CEO Summary Section】**
- Q3 revenue grew 8% YoY, driven by 11% growth in software and services and 6% in Products and SI. Record Q3 orders (+11% in Products and SI, +13% in Software and Services) and ending backlog of $14.6 billion (up 3% YoY) reflect strong demand. Silvus acquisition contributed $123 million in revenue, with 2026 expectations for $500 million+ in annual revenue and $0.30-$0.40 EPS accretion.
- Gross margin expansion in both segments (30.5% non-GAAP operating margin) and record Q3 operating cash flow ($799 million) highlight operational efficiency. Federal government shutdown risks are limited, with state and local customers unaffected.

**【CFO Financial Commentary】**
- GAAP EPS: $3.33 (up 1% YoY), Non-GAAP EPS: $4.60 (up 9% YoY). Operating margin expanded 80 bps to 30.5%, driven by higher sales and operating leverage. Free cash flow of $733 million (up 4% YoY) supports capital allocation (dividends, share buybacks, M&A).
- Tariffs impacted Q3 by $70-$80 million, but software/services growth (11%) and Silvus outperformance offset headwinds. Full-year guidance raised to $15.09-$15.15 EPS (from $14.88-$14.98) reflects confidence in 2026 growth.

**【Q&A Highlights】**
- **Silvus Performance**: Exceeding expectations with $500 million+ 2025 revenue vs. $475 million prior target. 20%+ 2026 growth expected, driven by defense, border security, and unmanned systems. SVX body-worn camera adoption exceeds 70 agencies, with AI-assisted features (real-time translation, incident reporting) gaining traction.
- **Government Shutdown Impact**: Minimal impact on state/local customers; federal delays may shift revenue timing but not demand. 2026 revenue guidance of $12.6 billion assumes no shutdown resolution.
- **Product Backlog**: Ending at mid-3s of $14.6 billion, up $467 million YoY. Software and Services backlog ($11 billion) driven by multiyear contracts and cloud video solutions (Avigilon Alta growing 4x+ Q3 YoY).
- **AI and Innovation**: APX NEXT app adoption surpasses 300,000 devices (up from 200,000 prior target), enabling AI-driven incident response and digital evidence management. Silvus' software-defined radios (e.g., low-probability-of-detection capabilities) enhance defense applications.
- **Tariff Mitigation**: Dual sourcing, USMCA-compliant manufacturing, and inventory management offset $70-$80 million Q3 tariff impact. 2026 margin expansion expected despite lapping tariffs in Q1/Q2.

Motorola Solutions, Inc. (MSI) Q3 2025 Earnings Call Transcript

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