Elbit Systems Ltd. (ESLT) Earnings
Elbit Systems Ltd. is expected to report next earnings on August 18, 2026 (in NaN days), with a consensus EPS estimate of $3.69. ESLT has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +21.6% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 26, 2026 | $3.44 | $3.87 | +12.5% | $2.2B | +2.1% |
| Mar 17, 2026 | $2.82 | $3.56 | +26.2% | $2.2B | +7.6% |
| Nov 18, 2025 | $2.75 | $3.35 | +21.8% | $1.9B | -6.9% |
| Aug 13, 2025 | $2.57 | $3.23 | +25.7% | $2.0B | -0.6% |
| May 20, 2025 | $2.30 | $2.57 | +11.7% | $1.9B | +4.1% |
| Mar 18, 2025 | $1.95 | $2.66 | +36.4% | $1.9B | +8.4% |
| Nov 19, 2024 | $1.86 | $2.21 | +18.8% | $1.7B | -3.5% |
| Aug 14, 2024 | $1.77 | $2.08 | +17.5% | $1.6B | -0.3% |
| May 28, 2024 | $1.35 | $1.81 | +34.1% | $1.5B | -5.3% |
| Nov 28, 2023 | $1.70 | $1.65 | -2.9% | $1.5B | +4.6% |
| Aug 15, 2023 | $1.53 | $1.57 | +2.6% | $1.5B | +5.4% |
| May 30, 2023 | $1.73 | $1.70 | -1.7% | $1.4B | +1.7% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 26, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Financial Performance Highlights - The company delivered double-digit year-over-year growth in revenues, operating profit, and diluted EPS - Total backlog reached a new record of $30.2 billion as of March 31, 2026, growing by more than $7 billion year-over-year; 71% of backlog originates outside Israel, and 49% is scheduled for delivery in 2026-2027 - GAAP operating margin hit 9.4% (up from 7.9% YoY), while non-GAAP operating margin reached 10.1% (up from 8.7% YoY), hitting the company's internal 10% margin target - Free cash flow was $210 million, a 30% year-over-year increase; the board declared a $1 per share dividend, double the prior dividend ### New Contract Awards - Total new business awards in the quarter exceeded $4 billion, almost double quarterly revenue - Major awards include: a $1.4 billion five-year European military modernization contract; a $1.75 billion contract for the Hellenic Armed Forces; a $275 million advanced helicopter EW solution contract; a $212 million sole-source U.S. Army night vision binocular production contract; an F-35 extended range capability development contract with Lockheed Martin ### Production Expansion - To meet rising global demand, the company is scaling production capacity and increasing CapEx investment, with major projects in Israel, Romania, the UK, and multiple other European locations - Key operational milestones: the southern Israel production facility is advancing; a new unmanned aerial system facility launched in Romania; the acquisition of UK-based UTACS was completed ### R&D and Strategic Priorities - The company prioritizes R&D investment in cutting-edge defense technologies: counter-UAS solutions (led by high-power lasers), autonomous platforms, multispectral sensing, and advanced precision munitions, with a growing focus on AI-driven capabilities - The company's growth strategy combines a broad product portfolio with local regional presence, including dozens of local subsidiaries, local job creation, and technology sharing to integrate into local defense ecosystems; it also pursues strategic joint ventures, such as the EuroPulse rocket launcher JV with KNDS in Germany and a maritime EW partnership with TKMS
Guidance
- The company does not provide explicit long-term revenue guidance, but reaffirms its internal target for mid-teens revenue growth for 2026, and maintains this growth outlook for 2027 based on current strong demand and conversion effectiveness - Management expects the Land segment to lead revenue expansion for the remainder of 2026, with strong demand also expected for C4I and ISR segments; Elbit Systems America is expected to continue delivering solid top-line growth and expanding margins - CapEx investment is targeted at approximately 3% of annual revenue in the near future, focused on expanding production capacity for land systems, AI solutions, and adding robotics/automation to improve cost efficiency - Extending operating margins remains a key internal priority for the company
Segment performance
For Q1 2026, total company revenue was $2.189 billion, a 15.5% increase from $1.896 billion in Q1 2025. Geographic revenue contribution was: 37% from Israel, 23% from Europe, 20% from North America, and 16% from Asia Pacific. Product segment performance: 1. C4I and Cyber: 17% year-over-year revenue growth, driven by radio and command-and-control system sales in Europe. 2. ISR and EW: 17% year-over-year revenue growth, driven by increased sales of airborne high-power laser and electronic warfare systems. 3. Land: 27% year-over-year revenue growth, driven by ammunition and munition sales in Israel and Europe. 4. Helmet Systems of America: 5% year-over-year revenue growth, driven by increased night vision system sales, partially offset by lower medical device sales. 5. Aerospace: 2% year-over-year revenue growth, impacted by project mix.
Risks & headwinds
No specific material risks, operational failures, or significant supply chain/labor bottlenecks were discussed on the call. Management noted that prior supply chain issues have been resolved, and the company's vertical integration, multiple supplier sourcing, and strategic inventory holdings (including for energetics) have mitigated current bottleneck risks. On the labor front, the company is on track to hire 2,000 new employees in 2026 (matching 2025 hiring levels) and does not currently face major recruitment challenges domestically or internationally. All forward-looking statements are flagged as subject to material differences between actual results and projected outcomes per the standard safe harbor disclosure.
Analyst Q&A
Q: Seth Baseland (J.P. Morgan) asked how full-year 2026 order expectations have changed, particularly given the strong Q1 growth in Israeli orders, and how the company views its overall order potential. /
A: Butsy Maslis responded that the company's order funnel is the strongest it has ever been, with growing opportunity across regions including the U.S., multiple European markets, Israel, the Gulf, and the Far East. He noted the company's two-pillar strategy of a broad efficient product portfolio and local regional integration, and expects the backlog to continue growing.
Q: Baseland followed up on how the company will deploy its strong balance sheet cash, given healthy net cash levels. /
A: Toby Kagan outlined the priority order for capital: first increased self-funded R&D (which already equals ~7% of revenue, more than double peer averages), then increased CapEx to meet rising demand, then the recently doubled dividend to shareholders. He added that the company is actively pursuing targeted acquisitions to expand its product portfolio, following the completed UTACS acquisition in the UK.
Q: Christine Lewag (Morgan Stanley) asked for details on LB Systems' anti-UAS portfolio (beyond directed energy), cost competitiveness, and delivery timelines for new orders. /
A: Butsy Maslis explained that high-power lasers are only one component of the company's full counter-UAS solution, which also includes AI-managed multi-type sensors (radar, acoustic, electro-optical) and multiple effectors, with full systems already deployed in Israel and Europe. Toby Kagan added that cost competitiveness is a core company priority, and CapEx is being increased specifically to meet the current surge in global demand for counter-UAS solutions.
Q: Ron Epstein (Bank of America) asked if there are current supply chain, material, or labor bottlenecks as the company ramps production to meet high demand. /
A: Butsy Maslis responded that prior supply chain issues have been resolved, and there are no current bottlenecks, including for critical materials like energetics. He noted the company's vertical integration, multi-sourcing strategy, and strategic inventory holdings mitigate risk. On labor, the company is hiring 2,000 employees in 2026 matching 2025 levels, and does not face major recruitment challenges in Israel or abroad.