Motorola Solutions, Inc. stock research
FY2023 Q2
Motorola Solutions (MSI) Gross Margin — Quarter Ended Jul 1, 2023
Revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier, while cost of revenue increased relative to the prior quarter but was unchanged from a year ago. The resulting gross margin improved compared to both prior periods.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q2
Revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier, while cost of revenue increased relative to the prior quarter but was unchanged from a year ago. The resulting gross margin improved compared to both prior periods.
- Compared to the year-ago quarter, gross profit increased while cost of revenue remained stable, supporting a wider gross margin. The period-over-period improvement is also visible relative to the preceding quarter.
- Gross margin was higher than the preceding quarter and higher than the same quarter one year earlier. Revenue and gross profit were also higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.5%
Gross profit
$1.2B
Revenue
$2.4B
Cost of revenue
$1.2B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+3.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 1, 2023 | $2.2B | $1.0B | $1.1B | 48.2% |
| Jul 1, 2023 | $2.4B | $1.2B | $1.2B | 49.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+1.3 pts
Year-over-year change
Jul 2, 2022
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Compared to the year-ago quarter, gross profit increased while cost of revenue remained stable, supporting a wider gross margin. The period-over-period improvement is also visible relative to the preceding quarter.
Gross margin was higher than the preceding quarter and higher than the same quarter one year earlier. Revenue and gross profit were also higher in both comparisons.
Monitor the mix between product and service revenue, as disclosed in the filing, since product sales carry a higher gross margin than services and any shift could influence overall margin.