Elbit Systems (NASDAQ:ESLT) Releases Earnings Results, Beats Estimates By $0.45 EPS

Elbit Systems (NASDAQ:ESLT) posted its quarterly earnings results on Tuesday. The aerospace company reported $4.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.69 by $0.45, FiscalAI reports. The firm had revenue of $2.29 billion during the quarter, compared to analyst estimates of $2.25 billion. Elbit Systems had a net margin of 7.14% and a return on equity of 16.15%.

Here are the key takeaways from Elbit Systems’ conference call:

• Elbit reported strong second-quarter growth, with revenue up 15.9% year over year to $2.29 billion, non-GAAP operating margin expanding to 10.4%, and non-GAAP diluted EPS rising 28% to $4.14.
• Backlog reached a record $32 billion, up 34% year over year, with 73% generated outside Israel and approximately 42% scheduled for delivery through 2027, providing significant revenue visibility.
• Management cited robust international demand, particularly in Europe and the U.S., supported by major awards including a $1.4 billion European modernization program, a $750 million Greek PULS contract, and U.S. awards totaling hundreds of millions of dollars.
• The company increased internally funded capital investment plans from $220 million to approximately $300 million to expand production, robotics, and AI capabilities; management also said customers are increasingly matching or fully funding capacity investments.
• Higher taxes, primarily from OECD Pillar Two global minimum-tax rules, lifted the effective tax rate to 16.4% from 5.6% a year earlier, while Aerospace revenue declined 8% due to unfavorable project mix and weaker European training and simulation sales.

Elbit Systems Stock Up 0.8%

Shares of NASDAQ ESLT traded up $5.92 during trading on Wednesday, hitting $782.00. The stock had a trading volume of 28,311 shares, compared to its average volume of 132,516. The firm has a fifty day moving average of $795.53 and a two-hundred day moving average of $808.84. The company has a market capitalization of $34.76 billion, a PE ratio of 63.32, a PEG ratio of 3.59 and a beta of 0.17. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.41 and a quick ratio of 0.86. Elbit Systems has a 12 month low of $447.00 and a 12 month high of $1,016.06.

Elbit Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, October 26th. Investors of record on Tuesday, October 13th will be given a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, October 13th. Elbit Systems’s dividend payout ratio is presently 26.88%.

More Elbit Systems News

Here are the key news stories impacting Elbit Systems this week:

• Positive Sentiment: Results exceeded expectations: Second-quarter non-GAAP EPS was $4.14 versus the $3.69 consensus, while revenue reached approximately $2.29 billion, ahead of the $2.25 billion estimate. Revenue increased 15.9% year over year, margins expanded and free cash flow more than doubled. Elbit Systems Reports Second Quarter 2026 Results
• Positive Sentiment: Record backlog supports longer-term growth: Orders in backlog reached $32.0 billion, driven particularly by international demand and European defense spending. The backlog provides substantial revenue visibility, although delivery timing and capacity constraints could limit near-term upside. Elbit Systems Record Backlog Makes the Pullback a Buy
• Positive Sentiment: Analyst valuation remains supportive: Reported recent analyst price targets have a median of $915, suggesting potential upside if Elbit converts its backlog into profitable deliveries.
• Neutral Sentiment: Dividend declared: Elbit announced a quarterly dividend of $1.00 per share, equivalent to an annualized yield of roughly 0.5%. The payout offers modest shareholder support but is unlikely to materially change the investment case.
• Neutral Sentiment: Short-interest data provides little signal: Reported short interest was zero, indicating no meaningful bearish positioning in the available data.
• Negative Sentiment: Mixed segment performance raised concerns: Aerospace revenue declined 8%, attributed to project mix and weaker European training and simulation sales. Investors may be focusing on this weakness rather than the headline earnings beat.
• Negative Sentiment: Higher spending and taxes may pressure near-term earnings: Elbit increased its internally funded capital investment plan to approximately $300 million and continues to raise R&D spending. The effective tax rate also rose to 16.4% from 5.6% a year earlier.
• Negative Sentiment: Insider selling adds a cautionary signal: Executives, including the CEO, reported sales and no purchases during the past six months. These transactions may weigh on sentiment, though they do not necessarily indicate deteriorating fundamentals.

Hedge Funds Weigh In On Elbit Systems

Hedge funds have recently modified their holdings of the company. Wexford Capital LP bought a new stake in Elbit Systems during the third quarter worth $63,000. Greenline Wealth Management LLC purchased a new position in Elbit Systems in the fourth quarter valued at about $85,000. Arax Advisory Partners grew its position in shares of Elbit Systems by 25.0% during the 4th quarter. Arax Advisory Partners now owns 150 shares of the aerospace company’s stock valued at $87,000 after acquiring an additional 30 shares during the period. Gen Wealth Partners Inc grew its position in shares of Elbit Systems by 72.0% during the 4th quarter. Gen Wealth Partners Inc now owns 160 shares of the aerospace company’s stock valued at $92,000 after acquiring an additional 67 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in shares of Elbit Systems during the fourth quarter worth $133,000. Institutional investors own 17.88% of the company’s stock.

Analyst Upgrades and Downgrades

ESLT has been the subject of a number of research reports. Jefferies Financial Group cut their target price on shares of Elbit Systems from $950.00 to $880.00 and set a “hold” rating for the company in a research note on Wednesday, June 24th. JPMorgan Chase & Co. upped their price objective on Elbit Systems from $930.00 to $950.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 27th. Zacks Research downgraded Elbit Systems from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, June 24th. Finally, Morgan Stanley set a $845.00 price objective on shares of Elbit Systems in a research note on Wednesday, July 15th. Two research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $803.75.

About Elbit Systems

Elbit Systems Ltd. is an Israel-based defense electronics company that designs, develops and supplies a broad range of systems for military, homeland security and commercial aviation customers. The company focuses on integrated, platform-level solutions that combine sensors, communications, command-and-control software and weapons integration to support intelligence, surveillance and reconnaissance (ISR), force protection and mission management.

Its product and service portfolio spans unmanned aircraft systems, electro-optic and signal intelligence systems, electronic warfare and communications equipment, avionics and mission systems for military and commercial aircraft, and land and naval systems.