Motorola Solutions, Inc. stock research
FY2024 Q3
Motorola Solutions (MSI) Gross Margin — Quarter Ended Sep 28, 2024
Revenue increased both sequentially and year-over-year, driving higher gross profit and gross margin. Cost of revenue also rose, but gross margin expanded compared to both the immediate prior quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q3
Revenue increased both sequentially and year-over-year, driving higher gross profit and gross margin. Cost of revenue also rose, but gross margin expanded compared to both the immediate prior quarter and the same quarter one year earlier.
- The gross margin improved compared with both the preceding quarter and the year-ago period, with revenue growth exceeding the increase in cost of revenue. This suggests the margin expansion is linked to the pace of revenue relative to costs.
- Comparatively, gross margin was higher than both the immediate prior quarter and the same quarter one year earlier. Revenue and gross profit also improved sequentially and year-over-year, while cost of revenue increased in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.4%
Gross profit
$1.4B
Revenue
$2.8B
Cost of revenue
$1.4B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+1.3 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $2.8B | $1.5B | $1.4B | 51.1% |
| Mar 30, 2024 | $2.4B | $1.2B | $1.2B | 49.9% |
| Jun 29, 2024 | $2.6B | $1.3B | $1.3B | 51.0% |
| Sep 28, 2024 | $2.8B | $1.4B | $1.4B | 51.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
+0.4 pts
Year-over-year change
Sep 30, 2023
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved compared with both the preceding quarter and the year-ago period, with revenue growth exceeding the increase in cost of revenue. This suggests the margin expansion is linked to the pace of revenue relative to costs.
Comparatively, gross margin was higher than both the immediate prior quarter and the same quarter one year earlier. Revenue and gross profit also improved sequentially and year-over-year, while cost of revenue increased in both comparisons.
Monitor the trend in service-related costs, as they represent a significant portion of total cost of revenue and could influence future margin performance.