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Business Segments · Gross margin

Software and Services — Gross margin

Motorola Solutions, Inc. Software and Services — Gross margin decreased by 7.0% to $557M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 24.3%, from $448M to $557M. Over 3 years (FY 2022 to FY 2025), Software and Services — Gross margin shows an upward trend with a 10.7% CAGR. This decline may warrant attention — for this metric, higher values are generally preferred.

Analysis

StatementSegment
CategoryProfitability
SignalHigher is better
VolatilityStable
First reportedQ1 2022
Last reportedQ1 2026May 7, 2026
Rolls up toGross Profit

How to read this metric

An increase suggests better pricing power or improved cost management in service delivery.

Detailed definition

This metric represents the profit remaining after deducting the direct costs of providing software and services from the...

Peer comparison

Standard gross margin metric used across all industries to assess core product profitability.

Metric ID: msi_segment_software_and_services_gross_margin

Historical Data

17 periods
 Q1 '22Q2 '22Q3 '22Q4 '22Q1 '23Q2 '23Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Value$390.25M$390.25M$390.25M$390.25M$460.75M$460.75M$460.75M$460.75M$418M$465M$471M$492M$448M$537M$535M$599M$557M
QoQ Change+0.0%+0.0%+0.0%+18.1%+0.0%+0.0%+0.0%-9.3%+11.2%+1.3%+4.5%-8.9%+19.9%-0.4%+12.0%-7.0%
YoY Change+18.1%+18.1%+18.1%+18.1%-9.3%+0.9%+2.2%+6.8%+7.2%+15.5%+13.6%+21.7%+24.3%
Range$390.25M$599M
CAGR+9.3%
Avg YoY Growth+11.9%
Median YoY Growth+15.5%

Frequently Asked Questions

What is Motorola Solutions, Inc.'s software and services — gross margin?
Motorola Solutions, Inc. (MSI) reported software and services — gross margin of $557M in Q1 2026.
How has Motorola Solutions, Inc.'s software and services — gross margin changed year-over-year?
Motorola Solutions, Inc.'s software and services — gross margin increased by 24.3% year-over-year, from $448M to $557M.
What is the long-term trend for Motorola Solutions, Inc.'s software and services — gross margin?
Over 3 years (2022 to 2025), Motorola Solutions, Inc.'s software and services — gross margin has grown at a 10.7% compound annual growth rate (CAGR), from $1.56B to $2.12B.
What does software and services — gross margin mean?
The profit generated from software and services before accounting for operating expenses.