Motorola Solutions, Inc.MSI
Motorola Solutions, Inc. Segments Disclosure
Information by Segment and Geographic Region
The Company conducts its business globally and manages it through the following two segments:
Products and Systems Integration: The Products and Systems Integration segment offers an extensive portfolio of infrastructure, devices, accessories, and the implementation and integration of such systems, devices and applications. Within MCN, the Company is a global leader in the two-way radio category, including the Company’s Project 25 (P25), Terrestrial Trunked Radio (TETRA), Digital Mobile Radio (DMR), as well as other professional and commercial radio (“PCR”) solutions. The Company provides LTE solutions for public safety, government, including defense, and enterprise users, including devices that operate in both low-band and mid-band frequencies. Additionally, through the Company's MANET and High Frequency (HF) and Very High Frequency (VHF) communications technologies, it supports defense, government and disaster relief agency customers that require dynamic, mobile and tactical point-to-point voice and data communications in remote or contested environments without the need for fixed infrastructure. The Company's Video technology includes network video management infrastructure, fixed security, certain mobile video equipment and access control solutions. The primary customers of the Products and Systems Integration segment are government, including defense, public safety and enterprise customers who operate private communications systems and video security solutions and typically manage a mobile workforce. In 2025, the segment’s net sales were $7.3 billion, representing 62% of the Company's consolidated net sales.
Software and Services: The Software and Services segment provides a broad range of solution offerings for government, public safety and enterprise customers. Software includes public safety and enterprise Command Center, unified communications applications, certain mobile video equipment, and video software solutions, delivered both on-premise and “as-a-service.” Services includes a continuum of service offerings beginning with repair, technical support and maintenance. More advanced technologies include monitoring, software updates and cybersecurity services. Managed services range from partial to full operation of customer-owned or Motorola Solutions-owned communications systems. In 2025, the segment’s net sales were $4.4 billion, representing 38% of the Company's consolidated net sales.
For the years ended December 31, 2025, 2024 and 2023, no single customer accounted for more than 10% of the Company's net sales.
Segment Information
The Company's chief operating decision maker, the chief executive officer, uses both segment gross margin and segment operating earnings to assess performance and allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments.
The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. See “Note 1: Summary of Significant Accounting Policies” to our consolidated financial statements in this “Part II. Item 8: Financial Statements and Supplementary Data” of this Form 10-K.
The following table summarizes Net sales, significant expenses, Gross margin and Operating earnings by segment:
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Years ended December 31 | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | Products and Systems Integration | Software and Services | Total | ||||||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 7,253 | $ | 4,429 | $ | 11,682 | $ | 6,883 | $ | 3,934 | $ | 10,817 | $ | 6,242 | $ | 3,736 | $ | 9,978 | |||||||||||||||||||||||||||||||||||
| Costs of sales | 3,338 | 2,309 | 5,647 | 3,215 | 2,090 | 5,305 | 3,115 | 1,893 | 5,008 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross margin | 3,915 | 2,120 | 6,035 | 3,668 | 1,844 | 5,512 | 3,127 | 1,843 | 4,970 | ||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 1,478 | 392 | 1,870 | 1,392 | 360 | 1,752 | 1,239 | 322 | 1,561 | ||||||||||||||||||||||||||||||||||||||||||||
| Research and development expenditures | 598 | 372 | 970 | 575 | 342 | 917 | 551 | 307 | 858 | ||||||||||||||||||||||||||||||||||||||||||||
| Other charges | 78 | 129 | 207 | 25 | 130 | 155 | 93 | 163 | 257 | ||||||||||||||||||||||||||||||||||||||||||||
| Operating earnings | $ | 1,761 | $ | 1,227 | $ | 2,988 | $ | 1,676 | $ | 1,012 | $ | 2,688 | $ | 1,244 | $ | 1,050 | $ | 2,294 | |||||||||||||||||||||||||||||||||||
Total other expense | (176) | (716) | (148) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings before income taxes | $ | 2,812 | $ | 1,972 | $ | 2,146 | |||||||||||||||||||||||||||||||||||||||||||||||
The following table summarizes the Company's capital expenditures and depreciation expense by segment:
| Capital Expenditures | Depreciation Expense | ||||||||||||||||||||||||||||||||||
| Years ended December 31 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||
| Products and Systems Integration | $ | 131 | $ | 103 | $ | 97 | $ | 92 | $ | 90 | $ | 83 | |||||||||||||||||||||||
| Software and Services | 134 | 154 | 156 | 99 | 94 | 96 | |||||||||||||||||||||||||||||
| $ | 265 | $ | 257 | $ | 253 | $ | 191 | $ | 184 | $ | 179 | ||||||||||||||||||||||||
The Company's chief operating decision maker does not review or allocate resources based on segment assets.
Geographic Area Information
| Net Sales | Assets | ||||||||||||||||||||||||||||||||||
| Years ended December 31 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||
| United States | $ | 7,929 | $ | 7,432 | $ | 6,559 | $ | 15,365 | $ | 11,456 | $ | 10,207 | |||||||||||||||||||||||
| United Kingdom | 603 | 572 | 769 | 2,538 | 2,190 | 2,034 | |||||||||||||||||||||||||||||
| Canada | 433 | 388 | 373 | 435 | 383 | 362 | |||||||||||||||||||||||||||||
| Other | 2,717 | 2,425 | 2,277 | 1,051 | 566 | 733 | |||||||||||||||||||||||||||||
| $ | 11,682 | $ | 10,817 | $ | 9,978 | $ | 19,389 | $ | 14,595 | $ | 13,336 | ||||||||||||||||||||||||
Net sales attributed to geographic area are predominately based on the ultimate destination of the Company's products and services.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
| 2018 | Feb 15, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 23, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.