MS

Motorola Solutions, Inc. stock research

Dec 31, 2023

FY2023 Q4

Motorola Solutions (MSI) Gross Margin — Quarter Ended Dec 31, 2023

In the current quarter, revenue increased compared to both the prior quarter and the same quarter last year, and gross profit increased more than cost of revenue, leading to an improved gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

In the current quarter, revenue increased compared to both the prior quarter and the same quarter last year, and gross profit increased more than cost of revenue, leading to an improved gross margin.

  • The expansion of gross margin was driven by gross profit growing faster than cost of revenue on a sequential and year-over-year basis.
  • Gross margin improved relative to the immediately preceding quarter and also improved compared to the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

51.1%

Gross profit

$1.5B

Revenue

$2.8B

Cost of revenue

$1.4B

Quarter-over-quarter change

+1.0 pts

Year-over-year change

+1.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 1, 2023$2.2B$1.0B$1.1B48.2%
Jul 1, 2023$2.4B$1.2B$1.2B49.5%
Sep 30, 2023$2.6B$1.3B$1.3B50.1%
Dec 31, 2023$2.8B$1.5B$1.4B51.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2023

+1.0 pts

Year-over-year change

Dec 31, 2022

+1.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The expansion of gross margin was driven by gross profit growing faster than cost of revenue on a sequential and year-over-year basis.

Gross margin improved relative to the immediately preceding quarter and also improved compared to the same quarter one year earlier.

Monitor the trend of cost of revenue relative to revenue growth.

MSI Gross Margin — Quarter Ended Dec 31, 2023