Motorola Solutions, Inc. (MSI) Q2 2026 Earnings Call Transcript

Good afternoon and thank you for holding. Welcome to the Motorola Solutions Second Quarter 2026 Earnings Conference Call. Today's call is being recorded. If you have any objections, please disconnect at this time. The presentation material and additional financial tables are posted on the Motorola Solutions Investor Relations website. In addition, a webcast replay of this call will be available on our website within three hours after the conclusion of this call. The website address is www.MotorolaSolutions.com forward slash investor. All participants have been placed in a listen-only mode. You will have an opportunity to ask questions after today's presentation. If you would like to ask a question, please press star 5 on your telephone keypad to be placed into the queue. You may also press star 5 again to remove yourself from the queue. I would now like to introduce Mr. Brian Petrowski, Vice President of Investor Relations. Mr. Petrowski, you may begin your conference.

Good afternoon. Welcome to our 2026 second quarter earnings call. With me today are Greg Brown, Chairman and CEO, Jason Winkler, Executive Vice President and CFO, Jack Malloy, Executive Vice President and COO, and Mahesh Saptharishi, Executive Vice President and CTO. Greg and Jason will review our results along with commentary, and Jack and Mahesh will join for Q&A. We have posted an earnings presentation and news release at motorolasolutions.com slash investors. These materials include gap to non-gap reconciliations for your reference. During the call, we referenced non-gap financial results, including those in our outlook, unless otherwise noted. A number of forward-looking statements will be made during this presentation and during the Q&A portion of the call. These statements are based on current expectations and assumptions that are subject to a variety of risks and uncertainties. Actual results could differ materially from these forward-looking statements. Information about factors that could cause such differences can be found in today's earnings news release, in the comments made during this conference call, in the risk factor section of our 2025 annual report on Form 10-K, or any quarterly report on Form 10-Q, and in our other reports and filings with the SEC. We do not undertake any duty to update any forward-looking statements. I'll now turn it over to Greg.

Thanks, Brian. Good afternoon, and thanks for joining us today. I'll start off by sharing a few thoughts about the business before Jason takes us through our results and outlook. First, Q2 was an exceptional quarter with record sales and earnings. Revenue was up 13%, driven by double-digit growth in both segments and all three technologies. Products and systems integration delivered an outstanding quarter, growing 15%, highlighted by mission-critical network sales that exceeded our expectations in public safety LMR, along with continued strength in Sylvus. And software and services also continues to perform well, growing 10% in the quarter. Additionally, Q2 included operating margin of expansion of 140 basis points, excluding the benefit of the IEFA tariff refunds. Second, our Q2 results and broad-based demand provide strong momentum for continued growth heading into the second half of this year, led by our Apex Next devices and next-generation D-series infrastructure. Our latest generation Apex Next devices continue to redefine mission-critical reliability and are increasingly integrated with new features that leverage our entire ecosystem. On the P25 network side, interest in D-Series is growing as agencies prioritize the modernization of their core mission-critical communications platforms. And finally, demand for our safety and security ecosystem remains robust, fueled by record Q2 orders in all three technologies. As a result, we achieved a record Q2 ending backlog of 15.6 billion, which is up 11% versus a year ago. As a result of the strong Q2 performance and growing momentum, we're again raising our full year guidance for both sales and EPS. And with that, I'll now turn the call over to Jason.

Thank you, Greg. Revenue for the quarter grew 13% and was above our guidance with double-digit growth in both segments and in all three technologies, primarily driven by strong LMR demand and accelerated quick-turn conversion. Revenue from acquisitions was $243 million, while foreign currency tailwinds were $35 million during the quarter, consistent with our expectations. Gap operating earnings were $809 million, or 25.8% of sales, up from 25% in the year-ago quarter. Non-gap operating earnings were just over a billion dollars, up 26% from the year-ago quarter, and non-gap operating margin was 32.9%, up 330 basis points. The increase in both gap and non-gap operating margin was driven by higher sales and improved operating leverage, inclusive of higher direct material costs, and a $60 million benefit from the IEPA refunds recorded during the quarter. Excluding the refunds, non-GAAP operating margins expanded by 140 basis points. GAAP earnings per share was $3.33, up from $3.04 in the year-ago quarter. Non-GAAP EPS was $4.41, up 84 cents, or 24%, from $3.57 last year. The growth in EPS was driven by higher operating earnings and a 25-cent benefit from the IEPA refunds, partially offset by higher interest expense in the current quarter. OPEX in Q2 was $673 million, up $58 million versus last year, primarily due to acquisitions. Turning to cash flow, Q2 operating cash flow was $469 million, up $197 million from last year, and free cash flow was $414 million, up $190 million. The increase in both operating and free cash flows was primarily driven by our higher earnings, partially offset by higher investments in inventory. Capital allocation for Q2 included $326 million in share repurchases at an average price of $413.53 per share, $201 million in cash dividends, and $55 million in CapEx. During the quarter, we also entered into a definitive agreement to acquire Defend, an industry leader in counter-drone solutions, for $1.5 billion, which we expect to close during the second half of this year. And we are targeting to close the previously announced acquisition of Bell Canada's LMR network services business in late Q4. Moving to segment results. In the products and SI segment, sales were up 15% versus last year. driven by growth in MCN and video, with MCN exceeding our expectations in public safety LMR, and continued strength in Silvis. Revenue from acquisitions was $210 million, and foreign currency tailwinds were $19 million during the quarter. Operating earnings were $599 million, or 31.4% of sales, up 470 basis points from 26.7% in the prior year, driven by higher sales and improved operating leverage, inclusive of higher direct material costs, and the IEPA refunds. Excluding the refunds, operating margin expanded 150 basis points during the quarter. Some notable Q2 wins and achievements in this segment include a $36 million P25 device and SVX order for a U.S. federal customer, a $20 million P25 device order for Atlanta, Georgia, a $17 million P25 device order for Miami-Dade Corrections in Florida. We also won three large awards for our next-generation P25 infrastructure, a $52 million order from a U.S. federal customer, a $34 million order with a state and local customer in the southeast region, and a $22 million order for St. Louis County, Missouri. All of these demonstrate the continuing customer demand for D-Series and a strong foundation for future software and services growth. In software and services, revenue was up 10% compared to last year, driven by growth across all three technologies. Revenue from acquisitions was $33 million and foreign currency tailwinds were $16 million in the quarter. Operating earnings in the segment were $433 million, or 35.3% of sales, up from 33.8% last year, driven by higher sales, inclusive of a favorable mix. Some notable Q2 highlights in this segment include a $24 million P25 services order for a North America energy company, a $20 million command center order for the state of Montana, Department of Justice, a $16 million P25 services order for Fulton County, Georgia, and a $14 million command center order for Hillsborough County, Florida. During the quarter, we also secured two large wins for our mobile video ecosystem, a $25 million order with the Florida Highway Patrol, and a $24 million order with the Kansas City Police Department. Successfully converting these two high-profile agencies, inclusive of our core responder AI assist capabilities. Looking at regional results, North America Q2 revenue was $2.2 billion, up 9%, with growth across all three technologies. And international Q2 revenue was $923 million, up 25% versus last year, driven by strong double-digit growth across all three technologies. Moving to backlog, ending backlog for Q2 was $15.6 billion, up $1.5 billion, or 11%, versus last year, driven by record Q2 orders. Sequentially, backlog declined $71 million, primarily driven by revenue recognition for the UK Home Office. In the products and SI segment, backlog increased $329 million versus last year due to strong demand in MCN and video. Sequentially backlogged decreased $99 million, driven by strong MCN shipments during the quarter. In software and services, backlogged increased $1.2 billion, compared to last year, driven by strong demand for multi-year contracts across all three technologies. Sequentially backlogged increased $28 million, primarily driven by strong demand in command center and video, partially offset by revenue recognition for the UK Home Office. Turning next to our outlook, we expect Q3 sales growth of approximately 8%, with non-GAAP earnings per share between $4.39 and $4.44 per share. This assumes a weighted average diluted share count of approximately 168 million shares and an effective tax rate of approximately 23%. For the full year, we now expect revenue of approximately $12.975 billion, up from our prior guidance of $12.8 billion, along with non-GAAP earnings per share between $17.62 and $17.72 per share, up from our prior guide of $16.87 to $16.99 per share. This full-year outlook assumes a weighted average diluted share count of approximately 168 million shares and an effective tax rate between 22 and 22.5%. It also assumes favorable FX of about $100 million, which is unchanged from our prior expectations. The $175 million raise in our full-year revenue expectations is driven by MCN, including approximately $100 million from Silvis, which we now expect to generate approximately $850 million in full-year revenue, The remainder of the increase we expect in MCN is a reflection of the continued strong demand for public safety LMR. With these increased top-line expectations, we now expect double-digit growth for both segments and all three technologies for the full year. Products in SI is expected to now grow 11%, up from our prior guidance of 8% to 9%, and software and services is expected to grow 11%, up from our prior guidance of 10% to 11%. And from a technology perspective, MCN is now expected to grow between 10% and 11%, up from our prior expectations of 8% to 9%. Video is expected to grow 11%, while in Command Center, we continue to expect approximately 15% growth. Before I turn the call back to Greg, I wanted to provide an update around tariffs and memory costs. We now expect the tariff impact to be neutral for the full year, as the IEPA refunds we recorded in Q2 offsets the $60 million in tariff headwinds that we had planned for this year. And regarding memory, we now anticipate our direct memory spend to be approximately $150 million this year, up from $50 million last year. Our teams continue to successfully navigate this challenging supply environment, carrying higher inventory and collaborating closely with our key suppliers to secure continuity of supply. We still expect gross margins to be comparable to last year, as the now-improved tariff outlook I mentioned offsets the increased memory cost expectations since our last call. And for full-year operating margins, we now expect approximately 170 basis points of expansion. up from 100 basis points previously. Finally, our balance sheet remains strong and gives us plenty of headroom and flexibility on capital allocation. As we previously highlighted, we expect to raise approximately $1 billion of incremental debt in the form of senior notes and term loans to finance the DEFEND acquisition, and we still expect to finish the year with a net debt to EBITDA leverage at approximately 2x, which is similar to where we ended last year. With that, I would now like to turn the call back to Greg.

Thanks, Jason. I'd like to conclude with a few final thoughts before we open it up for Q&A. First, Q2 was superb, and I'm extremely pleased with our execution. Revenue was up 13% with significant operating margin expansion, and we drove just under $500 million in operating cash flow. Additionally, we achieved record Q2 orders and backlog, putting us in a strong position heading into the second half of this year. Second, we're seeing strength across our safety and security ecosystem. Our video business continues to perform well, particularly in mobile video, where, as Jason mentioned, we secured two significant orders from Florida Highway Patrol and Kansas City Police Department. These deals were highly competitive, and what's most encouraging is that both of these large agencies are first-time users of our body-worn camera and in-car video solutions. In addition, Command Center continues its strong momentum as customers are increasingly adopting our software and AI-assist solutions to simplify their complex emergency response workflows. Third, Sylvis is performing exceptionally well, powering leading edge Manet connectivity for unmanned systems and battlefield communications, and pending regulatory approvals, we're also looking forward to the acquisition of Defend, an industry leader in counter drone solutions, which goes beyond simple detection and differentiating itself through non-kinetic cyber takeover mitigation capabilities that are increasingly critical for public safety. When you consider Silvis's leading-edge Manet Communications for Defense and DEFEN's leading-edge detection and mitigation for public safety, I think we're very well positioned to address our customers' rapidly growing needs for unmanned systems in defense and counter-drone solutions in public safety. And finally, in addition to our strong results and momentum. Our balance sheet and continued robust cash flow enable us to be flexible in how we deploy capital and drive long-term value both organically and through targeted acquisitions. I feel very good about where we are, and the increased guidance for the year reflects our confidence. I'll now turn the call back over to Brian.

Thank you, Greg. Before we begin taking questions, I would like to remind callers to limit themselves to one question and one follow-up to accommodate as many participants as possible. Operator, would you please remind our callers on the line how to ask a question?

The floor is now open for questions. If you have a question or comment, please press star 5 on your telephone keypad. If for any reason you would like to remove yourself from the queue, please press star 5 once again. We do ask that while you pose your question, please pick up your handset to provide optimal sound quality. Thank you. Our first question will come from Tim Long with Barclays. Your line is open. Please go ahead.

Thank you. Got a question on Silvis, and then I'll follow up with one on video. For Silvis, obviously, another raise here. That's great to see, and demand seems really strong there. Greg or Jack, could you just touch upon some of the capacity increases you guys are undertaking? What does that mean for, you know, the flow of this business? Are we still limited by capacity, and what would that mean for Silvis as we look out the next year or two? And then I'll follow up after that.

Tim, let me just dimensionalize Silvis in Q1, about $230 million in Q2.

There's specifically a second floor. And I think you read, Tim, that we announced the construction of a facility, a new manufacturing facility in Salt Lake City, which we're very, what we said before, we'll start to see the benefit of that. But the increased guide for Silvis this year takes into more balls and play for us.

Okay. That's great. And then just wanted to touch on the video business. You know, pretty strong quarter. Just looking at the complexion, it looks like a lot more product than some of the prior quarters, so not as much software service. Could you just talk a little bit about, you know, that mix and what that means in the quarter? and does that, you know, lead us towards a little bit more growth on the software side in the future? Anything on that mix and the take from that? Appreciate it.

You broke up a little bit, but I think you're asking about the mix and performance of software versus product there? A video. A video? Okay, yeah. So first of all, it grew 12% during the quarter in total, and we bumped up our guide to 11% from 10% to 11%, so even better than we had expected. In terms of the mix, you know, at the half, both performing well. We've seen striving. It reflects what we expect, the investments that the Hessian team are making in our cloud and hybrid offer that Malloy has. It's very good.

Okay. Thank you, guys. Appreciate it.

Your next question will come from Joseph Cardozo with J.P. Morgan. Your line is open. Please go ahead.

Hey, good afternoon, and thanks for the question here. Maybe for my first one, and perhaps maybe I'm jumping ahead here and looking at the fourth quarter, but, you know, when I do the back-of-the-envelope math on the implied fourth quarter revenue outlook, it embeds a pretty nice acceleration both sequentially and year-over-year. So maybe you can just help me think through the drivers behind that uptick that you guys are embedding into the guide, you know, maybe thinking about it from a demand perspective across the portfolio. Is there anything in particular that's driving kind of that acceleration here as we think about the exit trajectory for the year. And then also maybe just a quick clarification. Are you guys including acquisitions that haven't been closed yet into that guidance? And then I do have a follow-up.

So, Joe, to answer the last, we beat consensus by $130 million. Why did we do that? It's because informed by the suspected double-digit Orchard D series that are coming in Q4 that marry up with the conversion expectations of Jack's sales team. And lastly, we thought in Q2, the second half of this year, 10%.

Now, awesome color, Greg. I really appreciate all of that. And then maybe as my second one here, you know, gross margins stepped up meaningfully in the quarter, even excluding the tariff benefit. But you guys are still guiding stable gross margin outlooks for the full year. Maybe can you bridge the QQ performance against that? Like, what are the puts and takes relative to the headwinds from the cost inflation that you're highlighting versus maybe the tailwinds from mix and pricing levers? And how does that shake out as we progress through the year to kind of get us to this more stable gross margin outlook for the full year? Thanks for the question.

For us, for a number of quarters, we expect that to continue. Customers are adopting more feature-rich solutions, and that's in part what helps drive our growth. In terms of headwinds, I mentioned on the call that memory, because of timing.

Your next question will come from Andrew Spinella with UBS. Your line is open. Please ask your question.

Thank you. I think there's obviously a lot of interest in the second half ramp in the LMR business coming into this quarter. But the second question that I typically have been getting is trying to understand if you put all this COVID backlog shifting behind us and this sharp ramp in the second half, how are we looking in terms of, you know, within the LMR business? Is there anything where we can look at the product side and think, you know, increases in officers or international markets, Anything that can drive that, or infrastructure D-series, anything that can drive that business to an accelerated growth rate over the medium term.

Make it available. Changed in our expectations for first half, second half contribution. If anything, we've overperformed our expectations in the first half.

And, Andrew, I would think about the truth those platforms afford our customers. You know, historically, it was always around mission-critical voice. Now with the adoption of Apex Next, it incorporates broadband for 5G and broadband applications. Now our latest Apex Next radio is LEO compatible, adding another band for rural coverage for low-earth. You have the device refreshes with Apex Next now in this multidimensional, multimodal platform. And I'm making investments in LMR and MCN mechanically, Defend, and the announcement of that deal, that Defend leading counter-drone technology and track and identify, but surgically do cyber takeover, which very, very few people do, and we think Defend does the best. We'll work the traps on the regulatory approvals, and there's still work to be done there as well, which at the time we announced the deal. We expect it to be about $185 million in revenue. It has historically a CAGR revenue growth and the unique ecosystem we have today, but what we expect.

Appreciate that. One follow-up question, Greg. AI has been in the market now. You've had a product for maybe a couple quarters. Some of the competitors have had different types of products similar to yours, some more analytical. How is the industry accepting AI? Is it performing to expectations, both your product and across the industry, in terms of acceptance and just performance?

I think it's performing well. We talk about AI in the context of embedding it, in pretty much every aspect of public safety around the individual. How does it get implemented and productized through the lens of a public safety instantiated with a dispatcher? How does it get implemented? She's done a great job of building it out both.

What I just made is from the beginning where it's not an over-the-top solution. It is embedded deeply within each of our platforms.

Exactly. It's integrated.

And effectively the tier of our solution. So it is becoming something within each of those platforms we choose to use it for.

Your next question will come from Adam Tyndall with Raymond James. Your line is open. Please go ahead.

Okay, thanks. Good afternoon. I just wanted to maybe start this time last quarter. I think a lot of us were surprised by the PSI operating margin in Q1. S&S had an upside to offset, but I think the composition of that quarter was a little different than investors thought. Here we are 90 days later with a huge rebound in PSI margins on a sequential basis. So maybe just as a starting point, Jason, could you walk through sort of the drivers that, you know, led to this level of improvement? And you've mentioned memory costs increasing. I know in the past, as you've had cost increases, it makes sense for you to start raising price to correspond with that. I wonder how you're thinking about pricing as a lever as well going forward.

As we mentioned, was stronger conversion with orders brought in by the sales team that we were able to do with devices. And so we had more devices shipments. We have a higher inventory position, by the way, that's helping us get to strong quick-turn levels. It's helping us navigate margin quarter-over-quarter had to do with the mix towards devices, which we were able to turn within the quarter. That's a key driver as to the overperformance and the better margins. The second part of your question around levers that we have, increases on high memory content items in video, for example, like video servers. And we'll continue to look at that as an overall offset for the portfolio, but it's enabling us to meet the demand that we're seeing. We'll continue to look at it as a possibility.

Got it. Maybe just continuing that thought as a follow-up, Greg. Investors are looking at the product backlog being down sequentially, but also your positive the commentary on the outlook for the product business in particular, and I think Jason's guidance suggests that the back half is actually going to accelerate in terms of the product growth. So with product backlog down sequentially versus this acceleration implied in revenue, what are investors maybe missing if they over-fixate on the backlog trend, I think?

Look, we're thrilled. I know you're focused on the sequential, but we love the year-over-year performance. And at the end of the day, this is more about the MSI revenue story becomes more of one of in August. At the end of the day, I expect that we're digit.

And, Adam, to your point, the product backlog of the high threes is a strong place to be. Digit orders. That's in front of us and that we've been capturing and that the pipeline supports going forward. And that's the setup for how we expect things to play out in the second half of the year.

That's helpful.

Congrats on an awesome quarter.

Yeah, thank you, Adam. Appreciate it.

Your next question will come from George Nauter with Wolf Research. Your line is open. Please go ahead.

Thanks very much. I wanted to dig into the syllabus progress a bit more. Obviously, it continues to really do well. I know, I think you said, Jack, that you increased the sales force or doubled the size of the field force, but I'm just curious, like, as you look out, where are you seeing opportunities, what geos, what applications, you know, anything more you can tell us about the underlying demand trends there and customer interest would be great. Thanks.

Not only have we talked about MANA technology being high bandwidth, which enables throughput on the battlefield, but it's anti-jam. It's a low-probably intercept and detect. But just specifically, the USDOW just ran some trials scoring in terms of anti-jam testing results. And I think as we see in highly contested environments, when us versus our competition get put to the test, I think it's just further testament to what Vivek and the technical team have built there. And then we've added, as we talked about being a scale player, we're invested in additional capacity, go to market. We continue to extend and invest in R&D, not only in the waveform, but in the software aspects of it. and they're firing on all cylinders. And I think just to echo it, Greg, so we're really proud of what they've accomplished.

Super. Thank you very much. Thanks, George.

Your next question will come from Metta Marshall with Morgan Stanley. Your line is open. Please go ahead.

Great. I wanted to ask a question on APX Next and just the software subscriptions that you're seeing kind of attached to that. You know, in the past, you've noted somewhere around $300 per year. Just wanted to see what applications are either getting the most traction or if there's any update to that number. And then maybe as a follow-up question, just kind of any traction with SBX. Thanks.

And you're right.

A user who may be going out of their jurisdiction, smart programming, and then location continues to be. As we think about accountability that gets consumed, they have something you want to add. SBX traction, we're really proud. We've now got 150 customers operational with SVX. You heard Greg and Jason talk about Florida Highway Patrol in Kansas City, Missouri, secured against our competition because they love the story of our full ecosystem. What we've done internationally, we're over 20 competitive flips.

Great. Thanks so much.

The next question will come from Tomer Zilberman from Bank of America. Your line is open. Please go ahead.

Hey, guys. I wanted to go back to the LMR discussion. I think you mentioned earlier that you expect the segment to grow 10% in the second half. I mean, that's a really strong number. That's, you know, on par with, you know, the growth that you were seeing a couple of years ago when you had the benefit of both the North American refresh cycle and also the supply chain environment, which was driving up orders. So I guess the question is, as it pertains to your commentary around Apex Next, is that driving another cycle this time around? And I think a A while ago, you gave us a disclosure that Apex Nesh was about 25% of public safety shipments. Is there any update to that number you can give us?

So we talked about a growth driver of the second half ramp being infrastructure, which is D-Series, and the timing of the deployments and the new offer of UHS, which is coming to market. Conversion and quick turn for devices continues to be strong. It was stronger than we expected in Q2, and we expect it to be strong in the second half with continued momentum in customers choosing APEX Next.

His team, but, you know, in Q2, we announced the APEX 1930 certification.

So we have a question will come from James Fisher with Piper Sandler. Your line is open. Please go ahead.

Thanks for taking my question. This is Ryan on for James Fish. On the drone side, any pickup in pipeline post-World Cup? And now that you have Defend and Silvis' pillars here, How are you feeling about mitigation and prevention strategies that we could see MSI add organically or inorganically going forward?

Well, Ryan, we don't have defense context. They're kinetic and their creativity and ingenuity.

If they do it through surgical time, and security came out and announced a $1.5 billion unmanned aircraft contract for mitigation, so eloquently pointed out the drone down safely were the company selected there.

Thank you. And then a quick follow-up. How are state and local municipal budgets holding up for 2026? And are you seeing any hesitation in large-scale APX Next Upgrades, or is the funding environment still highly supportive?

The budgets have been, you know, continue to be budgets, which have now been floated in some cases approved. Public safety budget and government budgets, both state and local. And then if we think about software as it relates to public safety and the funding attributed to software for public safety, that's growing even faster than money is being allocated to public safety. So we think all in for 27 is generally conducive to our business.

Thank you very much. Thanks, Ryan.

Your next question will come from Matt Nicknam with Truist. Your line is open. Please go ahead.

Hey, thanks so much for taking the question. Congrats on the quarter. I have one follow-up and one, I guess, more main question. So the follow-up is, you talked about double-digit order growth in the second half of the year. I just want to clarify, is that for the product and SI segment or is that for the total business? And then, broadly speaking, around supply chain, just wondering if you can talk about the visibility you've got with your suppliers in terms of being able to procure what you need to accommodate demand and whether there could be upside to the guide if you're able to get access to more this year.

First, I think you're getting at memory. Memory this year, we're going to spend $100 to be good. Because we're working with our vendors to secure the continuity of supply, we are carrying higher inventory and capturing its availability. And I'd remind the CN portfolio, it does use a simpler form of RAM. It's not the latest, greatest, high-speed DRAM. And we can substitute in getting the continuity of supply we need, gross margins.

Once again, if you have a question, you may press star five on your telephone keypad to enter the queue. Your next question will come from Irvin Liu with Evercore ISI. Your line is open. Please go ahead.

Hi, thank you, and congrats on the nice set of numbers. I had one in a follow-up as well. Just given the continued outperformance of Silvis, I wanted to check whether you held an updated view on where the Silvis TAM stands today. I think most recently you indicated the TAM is currently about $3 billion and expected to double over the next four to five years. But I guess I just wanted to better understand whether your growth here on Silvis was more TAM-driven or share-driven. I mean, it sounds like the latter to me.

We don't have any information in the outline that we have quantified. I think the performance of Silvis is around share gain and execution.

And thank you. And for my follow-up, you discussed the D-Series infrastructure product as a contributor of LMR strengthening for Q4 looking ahead. Just given that this is the first infrastructure product in 12 years, are you seeing any sort of benefit of a pent-up demand for infrastructure broadly that can potentially unlock a multi-year infrastructure refresh cycle?

Just to dimensionalize the LMR business and to have mentioned that new refresh attributes they like the best, and to have them investing in it, not only for products in SI, by the way, most of the customers that are investing in this infrastructure are signing up for new five, ten-year software and services. We'll see the benefit of that over time as well. Jack, in terms of...

We've made coverage more efficient at the site, which is critically important to a lot of customers right now as they think about the redundancy of the networks. That incorporates low-Earth orbit satellites just as a backup to a backup, if you will. But as we look at it, Maryland, a 10-year renewal. It's Australian for 10 years. So I think it's a continued validation. We've had three big states, as I pointed out earlier, continue to think about the refreshing of the devices. And I think it's a testament to our product team on how they envision these things working together and then obviously the services that we provision for our customers to wrap around those things.

Your final question will come from Luke DePalma with William Blair. Your line is open. Please go ahead.

Greg, Jason, Jack, and Mahesh, good afternoon. Following up on the last question, should the D-series upgrade cycle be considered a one-time boost to the second-half growth rate for this year, or should it carry over into next year such that LMR will remain in positive growth territory?

Infrastructure is a slower move. We talked about three-step and at once.

It should be a positive catalyst also for next year, right? Yes. Question. The Silvis acquisition has been a home run, And many investors have wondered why Silvis didn't go the IPO path rather than selling to you because the growth has been so exceptionally strong. I wanted to ask about this Motorola effect and your ability to supercharge growth. So Defend has elite technology for radio frequency counter drone mitigation. And do you expect the combination of D-FEND's technology with Motorola's brand and the cross-selling and the manufacturing capacity that you can replicate with D-FEND what you've done with Silvis?

Yeah, and you hit on it. It's exactly right. It's a one to get together.

Thanks, Greg. Thank you.

This concludes our question and answer session. I will now turn the floor over to Mr. Greg Brown, Chairman and Chief Executive Officer, for any additional comments or closing remarks.

I just want to say thank you to all the Motorola people listening in, to our customers. Thank you to our partners. It was a great quarter, a great quarter with double-digit orders, strong revenue growth, operating margin expansion, generating just under $500 million just in Q2 of cash strength. That in $130 million does conclude today's teleconference.

A replay of this call will be available over the Internet within three hours. The website address is www.MotorolaSolutions.com forward slash investor. We thank you for your participation and ask that you please disconnect your lines at this time.