Motorola Solutions, Inc. stock research
FY2023 Q3
Motorola Solutions (MSI) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster rate than revenue, resulting in an improved gross margin, while cost of revenue remained stable year over year but rose sequentially.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew at a faster rate than revenue, resulting in an improved gross margin, while cost of revenue remained stable year over year but rose sequentially.
- The most notable observable driver of the margin improvement is the year-over-year stability of cost of revenue despite higher revenue, allowing gross profit to expand. Sequentially, revenue growth outpaced the increase in cost of revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved markedly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.1%
Gross profit
$1.3B
Revenue
$2.6B
Cost of revenue
$1.3B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+6.6 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% |
| Sep 30, 2023 | $2.6B | $1.3B | $1.3B | 50.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 1, 2023
+0.6 pts
Year-over-year change
Oct 1, 2022
+6.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable driver of the margin improvement is the year-over-year stability of cost of revenue despite higher revenue, allowing gross profit to expand. Sequentially, revenue growth outpaced the increase in cost of revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved markedly.
Monitor the cost of services sales, which decreased year over year according to the filing, as it may influence future margin trends.