Share-Based Compensation Plans

3 Months Ended

Apr. 04, 2026

Share-Based Payment Arrangement [Abstract]

Compensation expense for the Company’s share-based plans was as follows:


	Three Months Ended
	April 4, 2026		March 29, 2025
Share-based compensation expense included in:
Costs of sales	$	21	$	14
Selling, general and administrative expenses	54		35
Research and development expenditures	25		17
Share-based compensation expense included in Operating earnings	100		66
Tax benefit	(18)		(14)
Share-based compensation expense, net of tax	$	82	$	52
Decrease in basic earnings per share	$	(0.49)	$	(0.31)
Decrease in diluted earnings per share	$	(0.49)	$	(0.31)

During the three months ended April 4, 2026, the Company granted 0.5 million restricted stock units (RSUs), 0.1 million performance stock units (PSUs) and 0.04 million market stock units (MSUs) with an aggregate grant-date fair value of $208 million, $40 million and $20 million, respectively, and 0.1 million stock options and 0.1 million performance options (POs) with an aggregate grant-date fair value of $8 million and $20 million, respectively. The share-based compensation expense will generally be recognized over the vesting period of three years.

The Company has various defined contribution plans, in which all eligible employees may participate. In the U.S., the Motorola Solutions 401(k) Plan (the "401(k) Plan") is a contributory plan. Matching contributions are based upon the amount of the employees’ contributions. Beginning January 1, 2026, the Company's matching contribution under the 401(k) Plan was made in Company common stock. During the three months ended April 4, 2026, the Company issued 0.03 million shares of common stock with an aggregate grant-date fair value of $14 million to fund the 401(k) Plan Company matching contribution. The share-based compensation expense was recorded in the period in which the shares were issued.