Motorola Solutions, Inc. stock research
FY2025 Q2
Motorola Solutions (MSI) Gross Margin — Quarter Ended Jun 28, 2025
Revenue increased both sequentially and year-over-year, while cost of revenue also rose. Gross profit grew correspondingly, resulting in a gross margin that weakened compared to the prior quarter but improved against the same quarter last year.
Gross margin takeaway
Quarter ended Jun 28, 2025 · FY2025 Q2
Revenue increased both sequentially and year-over-year, while cost of revenue also rose. Gross profit grew correspondingly, resulting in a gross margin that weakened compared to the prior quarter but improved against the same quarter last year.
- The primary driver of the gross margin change is the relationship between revenue growth and cost of revenue growth. Sequentially, cost of revenue increased at a faster pace than revenue, leading to a lower margin, while year-over-year revenue growth modestly outpaced cost growth, supporting a slightly higher margin.
- Compared to the prior quarter, gross margin declined, indicating that cost growth outpaced revenue growth. Against the same quarter one year ago, gross margin increased, reflecting a more favorable balance between revenue and cost.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.1%
Gross profit
$1.4B
Revenue
$2.8B
Cost of revenue
$1.4B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Sep 28, 2024 | $2.8B | $1.4B | $1.4B | 51.4% |
| Dec 31, 2024 | $3.0B | $1.5B | $1.5B | 51.4% |
| Mar 29, 2025 | $2.5B | $1.3B | $1.2B | 51.4% |
| Jun 28, 2025 | $2.8B | $1.4B | $1.4B | 51.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2025
-0.3 pts
Year-over-year change
Jun 29, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin change is the relationship between revenue growth and cost of revenue growth. Sequentially, cost of revenue increased at a faster pace than revenue, leading to a lower margin, while year-over-year revenue growth modestly outpaced cost growth, supporting a slightly higher margin.
Compared to the prior quarter, gross margin declined, indicating that cost growth outpaced revenue growth. Against the same quarter one year ago, gross margin increased, reflecting a more favorable balance between revenue and cost.
Monitor the trajectory of cost of revenue relative to revenue in future quarters.