MS

Motorola Solutions, Inc. stock research

Sep 27, 2025

FY2025 Q3

Motorola Solutions (MSI) Gross Margin — Quarter Ended Sep 27, 2025

Gross margin improved compared to the prior quarter and the same quarter last year, as revenue and gross profit both increased while cost of revenue rose at a slower rate. The relationships among revenue, cost of revenue, and gross profit indicate a modest expansion in profitability.

Gross margin takeaway

Quarter ended Sep 27, 2025 · FY2025 Q3

Gross margin improved compared to the prior quarter and the same quarter last year, as revenue and gross profit both increased while cost of revenue rose at a slower rate. The relationships among revenue, cost of revenue, and gross profit indicate a modest expansion in profitability.

  • The relative pace of revenue growth versus cost growth is the most observable factor associated with the gross margin change.
  • Compared with the immediately preceding quarter, gross margin was higher, accompanied by increases in revenue and gross profit that exceeded the cost rise. Versus the same quarter one year earlier, gross margin also improved, with similar patterns.

Gross margin snapshot

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

Gross margin

51.6%

Gross profit

$1.6B

Revenue

$3.0B

Cost of revenue

$1.5B

Quarter-over-quarter change

+0.5 pts

Year-over-year change

+0.3 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$3.0B$1.5B$1.5B51.4%
Mar 29, 2025$2.5B$1.3B$1.2B51.4%
Jun 28, 2025$2.8B$1.4B$1.4B51.1%
Sep 27, 2025$3.0B$1.6B$1.5B51.6%

Quarterly comparisons

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

Previous-quarter change

Jun 28, 2025

+0.5 pts

Year-over-year change

Sep 28, 2024

+0.3 pts

What the margin says

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

The relative pace of revenue growth versus cost growth is the most observable factor associated with the gross margin change.

Compared with the immediately preceding quarter, gross margin was higher, accompanied by increases in revenue and gross profit that exceeded the cost rise. Versus the same quarter one year earlier, gross margin also improved, with similar patterns.

Monitor the trend in the mix between product and service revenues, as disclosed in the filing, which may influence future gross margin.

MSI Gross Margin — Quarter Ended Sep 27, 2025