MS

Motorola Solutions, Inc. stock research

Dec 31, 2024

FY2024 Q4

Motorola Solutions (MSI) Gross Margin — Quarter Ended Dec 31, 2024

Revenue and gross profit increased compared to the prior quarter, with cost of revenue rising proportionally, so gross margin remained stable. Year over year, revenue grew and cost of revenue also increased, while gross profit was unchanged, resulting in a slight improvement in gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue and gross profit increased compared to the prior quarter, with cost of revenue rising proportionally, so gross margin remained stable. Year over year, revenue grew and cost of revenue also increased, while gross profit was unchanged, resulting in a slight improvement in gross margin.

  • The consistent gross margin between the current and preceding quarter suggests that the relationship between revenue and cost of revenue remained steady despite higher revenue. Compared to the same quarter one year earlier, the margin improved as revenue grew more than cost of revenue.
  • Sequentially, gross margin was stable. Year over year, gross margin improved modestly.

Gross margin snapshot

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

Gross margin

51.4%

Gross profit

$1.5B

Revenue

$3.0B

Cost of revenue

$1.5B

Quarter-over-quarter change

+0.1 pts

Year-over-year change

+0.4 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 30, 2024$2.4B$1.2B$1.2B49.9%
Jun 29, 2024$2.6B$1.3B$1.3B51.0%
Sep 28, 2024$2.8B$1.4B$1.4B51.4%
Dec 31, 2024$3.0B$1.5B$1.5B51.4%

Quarterly comparisons

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

Previous-quarter change

Sep 28, 2024

+0.1 pts

Year-over-year change

Dec 31, 2023

+0.4 pts

What the margin says

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

The consistent gross margin between the current and preceding quarter suggests that the relationship between revenue and cost of revenue remained steady despite higher revenue. Compared to the same quarter one year earlier, the margin improved as revenue grew more than cost of revenue.

Sequentially, gross margin was stable. Year over year, gross margin improved modestly.

Monitor whether the gross margin can sustain its level as revenue growth continues.