MS

Motorola Solutions, Inc. stock research

Mar 29, 2025

FY2025 Q1

Motorola Solutions (MSI) Gross Margin — Quarter Ended Mar 29, 2025

In the most recent quarter, revenue and gross profit both decreased compared to the preceding quarter, while cost of revenue also decreased, resulting in a stable gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, and cost of revenue was similar, leading to an improved gross margin.

Gross margin takeaway

Quarter ended Mar 29, 2025 · FY2025 Q1

In the most recent quarter, revenue and gross profit both decreased compared to the preceding quarter, while cost of revenue also decreased, resulting in a stable gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, and cost of revenue was similar, leading to an improved gross margin.

  • The strongest observable margin driver was the relationship between revenue and cost of revenue. Year over year, revenue increased while cost of revenue remained relatively unchanged, which expanded gross margin. Sequentially, revenue and cost both declined, keeping the margin steady.
  • When compared to the preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin was stable. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was similar, and gross margin improved.

Gross margin snapshot

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

Gross margin

51.4%

Gross profit

$1.3B

Revenue

$2.5B

Cost of revenue

$1.2B

Quarter-over-quarter change

-0.0 pts

Year-over-year change

+1.5 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Mar 29, 2025$2.5B$1.3B$1.2B51.4%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2024

-0.0 pts

Year-over-year change

Mar 30, 2024

+1.5 pts

What the margin says

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

The strongest observable margin driver was the relationship between revenue and cost of revenue. Year over year, revenue increased while cost of revenue remained relatively unchanged, which expanded gross margin. Sequentially, revenue and cost both declined, keeping the margin steady.

When compared to the preceding quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin was stable. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue was similar, and gross margin improved.

Monitor the trend of cost of revenue relative to revenue, as its stability or change directly influences gross margin.