Motorola Solutions, Inc. stock research
FY2026 Q1
Motorola Solutions (MSI) Gross Margin — Quarter Ended Apr 4, 2026
Revenue decreased from the immediately preceding quarter, while cost of revenue declined less, resulting in a lower gross margin. Compared to the same quarter last year, revenue was higher but cost of revenue grew in tandem, leading to a slightly weakened gross margin.
Gross margin takeaway
Quarter ended Apr 4, 2026 · FY2026 Q1
Revenue decreased from the immediately preceding quarter, while cost of revenue declined less, resulting in a lower gross margin. Compared to the same quarter last year, revenue was higher but cost of revenue grew in tandem, leading to a slightly weakened gross margin.
- The most observable driver in the current quarter is the relative movement of cost of revenue: although revenue dropped sequentially, cost of revenue did not fall proportionally, putting pressure on gross margin.
- Sequentially, gross margin weakened as revenue fell and cost of revenue remained comparatively high. On a year-over-year basis, gross margin also declined moderately, with revenue growth accompanied by a slightly larger increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.2%
Gross profit
$1.4B
Revenue
$2.7B
Cost of revenue
$1.4B
Quarter-over-quarter change
-2.1 pts
Year-over-year change
-1.2 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 |
|---|---|---|---|---|
| Jun 28, 2025 | $2.8B | $1.4B | $1.4B | 51.1% |
| Sep 27, 2025 | $3.0B | $1.6B | $1.5B | 51.6% |
| Dec 31, 2025 | $3.4B | $1.8B | $1.6B | 52.3% |
| Apr 4, 2026 | $2.7B | $1.4B | $1.4B | 50.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-2.1 pts
Year-over-year change
Mar 29, 2025
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver in the current quarter is the relative movement of cost of revenue: although revenue dropped sequentially, cost of revenue did not fall proportionally, putting pressure on gross margin.
Sequentially, gross margin weakened as revenue fell and cost of revenue remained comparatively high. On a year-over-year basis, gross margin also declined moderately, with revenue growth accompanied by a slightly larger increase in cost of revenue.
Monitor the cost structure, particularly services cost, which increased in the current quarter relative to the prior year period.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Motorola Solutions, Inc. (MSI) | 50.2% |