Aug 5, 2026 earnings call — Strong device, Silvus, and D-Series momentum
Raised full-year revenue to approximately $12.975 billion after a strong Q2 with revenue up 13% and record $15.6 billion backlog.
Revenue $3.1B (est $3.0B) · EPS $4.41 (est $3.85)
Key quotes
"The $175 million raise in our full-year revenue expectations is driven by MCN, including approximately $100 million from Silvus, which we now expect to generate approximately $850 million in full-year revenue."
"there are some specific ship acceptance and product releases around the infrastructure D-Series that are coming in Q4 that marry up with the conversion expectations of Jack's sales team, which informs that strong Q4."
"100% of our VESTA emergency call handling solutions in Q2 were at the assist tier, which is effectively the tier of our solution that includes all the AI capabilities."
Analyst Q&A 13
Silvus capacity and Video product mix
Q (Timothy Long · Barclays): Analyst asked about capacity increases at Silvus and whether capacity still limits growth. He also asked about the Video business mix between products and software and its future.
A: Management said they added capacity at the Los Angeles site and are building a new Salt Lake City facility that will start helping in 2027. They noted the raised Silvus guide reflects current capacity and that software and services are growing double digits in Video while products are strong.
"But the increased guide for Silvus this year takes into account our current capacity, and we'll live within that." — John Molloy (COO)
Drivers of Q4 acceleration and gross margins
Q (Joseph Cardoso · JPMorgan): Analyst asked what is driving the implied Q4 acceleration in the guide and whether acquisitions not closed are included. He also asked for a bridge between Q2 gross margin improvement and the stable full-year guide.
A: Management said the guidance reflects only assets they already own today and the full-year raise is driven by better conversion and strong demand, including specific product releases in Q4. They also said memory costs are a headwind and will be higher in the second half, but favorable mix and offsets let them maintain comparable gross margins for the year.
"So Joe, to answer the last part first, the guidance we're providing for the full year and the beat and the raise reflect the assets we have today." — Gregory Brown (CEO·CHAIR)
LMR demand drivers and D-Fend
Q (Andrew Spinola · UBS): Analyst wanted to know what can drive medium-term LMR growth after the backlog shift and whether products or markets (officers, international, infrastructure D-Series) can accelerate growth.
A: Management said public safety LMR (MCN excluding Silvus) is strong with order strength and a planned second-half ramp tied to D-Series deployments and product releases, including UHF in Q4. They also described APX NEXT device refresh and new infrastructure as drivers, and highlighted the D-Fend asset for counter-drone capability once approvals are complete.
"And I just think that more and more customers see the criticality of LMR." — Gregory Brown (CEO·CHAIR)
Industry acceptance of AI
Q (Joseph Cardoso · JPMorgan): Analyst asked how the industry is accepting AI products and whether Motorola's AI is performing to expectations compared with peers.
A: Management said AI is performing well and is being embedded across products for different public safety personas (responders, dispatchers, real-time centers). They noted on-prem and hybrid solutions are in place and that traction has been good.
"I think Mahesh has done a great job of building it out both on-prem as well as hybrid solutions, and I think our traction is quite good." — Gregory Brown (CEO·CHAIR)
AI integration in emergency products
Q (Mahesh Saptharishi): Analyst asked how AI is embedded and whether it is raising prices or being accepted by customers.
A: Management said AI is now a need-to-have and is deeply embedded across platforms, raising ASPs. They noted 100% of VESTA emergency call handling solutions in Q2 were at the assist tier, which includes AI capabilities, and emphasized transparency on data and free training for customers.
PSI margin rebound and pricing levers
Q (Adam Tindle · Raymond James): Analyst asked what drove the big sequential PSI operating margin improvement and how management thinks about pricing as a lever given rising memory costs.
A: Management said stronger conversion and a device-heavy mix that they could turn inside the quarter drove margin improvement. They also said memory costs are higher, they've taken targeted price increases on high-memory Video items, and they'll consider pricing as an offset while securing supply.
"So part of the improvement in op margin quarter-over-quarter had to do with the mix towards devices, which we were able to turn within the quarter." — Jason Winkler (CFO)
Where Silvus demand is coming from
Q (George Notter · Wolfe): Analyst asked where Silvus is seeing opportunities by geography and application and what underlies the strong demand.
A: Management said demand is driven by international defense modernization, led by NATO and EU countries, Germany, Ukraine, the U.S., and Indo-Pacific. They noted a doubled sales force, a new Salt Lake City facility coming online, strong anti-jam test results, and continued R&D and go-to-market investment.
"Yes. The only thing I'd build on is, listen, the secret sauce here is Spectrum Dominance 2.0 software." — John Molloy (COO)
APX NEXT subscriptions and SPX traction
Q (Meta Marshall · Morgan Stanley): Analyst asked about the subscription attach for APX NEXT (previously around $300/year) and which apps have traction, plus SPX adoption.
A: Management said they expect about 300,000 subscribers by year-end '26, up from about 200,000 at end '25, and app pricing is around $300 and has risen a bit with new apps. They said APX NEXT apps like SmartConnect, Smart Programming and Location are popular, SPX has 150 customers operational and many competitive flips internationally, and APX NEXT and SPX wins are often paired.
"You're right. We expect 300,000 subscribers by the year-end '26." — Jason Winkler (CFO)
APX NEXT's role in LMR growth
Q (Tomer Zilberman · BofA): Analyst asked whether APX NEXT is driving a new refresh cycle similar to past cycles and whether there is an updated share figure for APX NEXT in shipments.
A: Management said infrastructure (D-Series) and device conversion/quick turn remain key second-half drivers, and customers choosing APX NEXT support higher upfront pricing plus recurring subscriptions. They also announced APX NEXT entering the fire market with NFPA 1930 certification via APX NEXT XN.
"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 APX NEXT, which comes to us at a premium at the time of sale and also with the ARR subscription that Meta just asked about." — Jason Winkler (CFO)
D-Fend role and public safety budgets
Q (Ryan Abbott · Piper Sandler): Analyst asked about pipeline pickup for drones after the World Cup and how D-Fend and Silvus fit into mitigation strategies; also asked how state and local budgets look for 2026.
A: Management said D-Fend provides detection, tracking, identification and surgical cyber takeover mitigation, making it best-in-class for public safety and critical venues; D-Fend was widely used at FIFA. They also said 2026 state and local budgets continue to be very good and public safety funding is growing faster than general government budgets.
"What we loved about D-Fend and their creativity and ingenuity is they do it through surgical cyber takeover." — Gregory Brown (CEO·CHAIR)
Orders guidance and memory/supply visibility
Q (Matthew Niknam · Truist): Analyst asked whether double-digit order growth refers to Products and SI or total business, and about supplier visibility for meeting demand and upside to guidance.
A: Management said the double-digit growth reference is for Products and SI in the second half. They added memory availability has been good because they are working with vendors to secure continuity of supply, carrying higher inventory, and they can substitute simpler RAM in LMR to maintain supply despite higher costs.
"The availability has been good and continues to be good because we're working with our vendors to secure the continuity of supply." — Jason Winkler (CFO)
Is Silvus growth TAM or share driven?
Q (Jyhhaw Liu · Evercore): Analyst asked whether Silvus growth reflects a larger TAM than previously stated or primarily share gains, and whether D-Series unlocks a multiyear infrastructure cycle.
A: Management said Silvus performance is driven more by share gains and execution rather than a material TAM change to the previously stated figure. They also said infrastructure (D-Series) is under 1/4 of LMR but is a growth driver tied to long-term multi-year software and services contracts and customer multiyear plans.
"We don't have any information that would materially change the TAM that you just outlined that we have quantified." — Gregory Brown (CEO·CHAIR)
D-Series longevity and D-Fend synergy
Q (Louie Dipalma · William Blair): Analyst asked if D-Series is a one-time lift or will carry into next year and beyond, and whether D-Fend can be similarly scaled by Motorola.
A: Management said D-Series and infrastructure are multiyear, slower-moving drivers that will refresh networks into the 2030s and are not just a Q4 event. They also said Motorola's brand, sales motion, manufacturing scale, and go-to-market can accelerate growth for elite assets like Silvus and D-Fend, making them scale faster than on their own.
"So think of D-Series and infrastructure as a slower-moving building part of our growth story." — John Molloy (COO)