The Chicago-based company reported a fourth-quarter net income of $649 million, or $3.86 per share, up from $611 million a year prior. On an adjusted basis, earnings reached $4.59 per share, outperforming the $4.35 consensus estimate provided by FactSet. Revenue climbed 12% to $3.38 billion, driven by what CEO Gregory Brown described as record-breaking performance in both major business segments.

Investors reacted to the earnings beat by pushing the stock up 10.5% to $465.37 during Thursday morning trading. This jump represents the largest percentage increase for Motorola Solutions since 2020, effectively reversing a marginal decline over the past 12 months. The rally underscores market confidence in the company’s ability to maintain high margins despite broader macroeconomic shifts.

Future Growth and 2026 Targets

Motorola’s momentum appears set to continue into the new fiscal year. For the first quarter, management projects adjusted earnings between $3.20 and $3.25 per share, with revenue growth estimated at 6% to 7%. While the revenue growth target is slightly more conservative than some analyst models, the company's long-term targets remain aggressive.

The company’s 2026 guidance provided the most significant catalyst for the stock's upward trajectory. According to the report, Motorola expects full-year adjusted earnings to land between $16.70 and $16.85 per share on revenue of $12.7 billion. These figures surpass analyst projections of $16.26 per share and $12.6 billion in revenue, signaling a robust multi-year growth runway.