MS

Motorola Solutions, Inc. stock research

Dec 31, 2025

FY2025 Q4

Motorola Solutions (MSI) Gross Margin — Quarter Ended Dec 31, 2025

In the current quarter, revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier. The gross margin improved as well, reflecting that revenue increased at a faster pace than the cost of revenue.

Gross margin takeaway

Quarter ended Dec 31, 2025 · FY2025 Q4

In the current quarter, revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier. The gross margin improved as well, reflecting that revenue increased at a faster pace than the cost of revenue.

  • The most observable driver of the margin improvement is the greater increase in revenue compared to the cost of revenue, which enabled gross profit to rise and the gross margin to strengthen.
  • Compared to the prior quarter, revenue, gross profit, and gross margin all were higher. Compared to the same quarter last year, the same direction of change was observed across all three metrics.

Gross margin snapshot

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

Gross margin

52.3%

Gross profit

$1.8B

Revenue

$3.4B

Cost of revenue

$1.6B

Quarter-over-quarter change

+0.7 pts

Year-over-year change

+0.9 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 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%
Dec 31, 2025$3.4B$1.8B$1.6B52.3%

Quarterly comparisons

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

Previous-quarter change

Sep 27, 2025

+0.7 pts

Year-over-year change

Dec 31, 2024

+0.9 pts

What the margin says

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

The most observable driver of the margin improvement is the greater increase in revenue compared to the cost of revenue, which enabled gross profit to rise and the gross margin to strengthen.

Compared to the prior quarter, revenue, gross profit, and gross margin all were higher. Compared to the same quarter last year, the same direction of change was observed across all three metrics.

Monitor the trend in operating cash flows, as detailed in the liquidity and capital resources section, for indications of the company’s ability to sustain its operations.