Elbit Systems (TASE: ESLT; Nasdaq: ESLT) released its first quarter results this morning, beating the analysts’ consensus on both revenue and earnings per share, and also announced a $1.4 billion contract with a European customer. The company’s share price is currently up by more than 9% on the Tel Aviv Stock Exchange.
Elbit Systems’ revenue in the first quarter of 2026 totaled $2,188.8 million, which compares with $1,895.8 million in the corresponding quarter of 2025. Net profit on a GAAP basis was $160.8 million (7.3% of revenue), up 50% from $107.1 million (5.6% of revenue) in the corresponding quarter. On a non-GAAP basis, the company posted a net profit of $186.4 million (8.5% of revenue), up 59% from $117.2 million (6.2% of revenue) in the corresponding quarter. Non-GAAP diluted earnings per share were $3.87 for the first quarter of 2026, which compares with $2.57 in the corresponding quarter.
The average analysts’ estimate was revenue of $2.14 billion and earnings per share of $3.33.
Research and development expenses, net, were $150.4 million (6.9% of revenue) in the first quarter of 2026, which compares with $114.3 million (6.1% of revenue) in the first quarter of 2025. Financial expenses, net were $32.2 million in the first quarter of 2026, down from $39.0 million in the first quarter of 2025. The company said that the decrease in financial expenses was mainly due to a reduction in the average debt.
On a GAAP basis, operating profit in the first quarter of 2026 was $205.1 million (9.4% of revenue), up from $149.7 (7.9% of revenue) in the corresponding quarter. Operating profit on a non-GAAP basis was $222.0 million (10.1% of revenue), which compares with $165.1 million (8.7% of revenue) in the corresponding quarter.
At the end of the first quarter this year, Elbit Systems had an order backlog of $30.2 billion. Approximately 71% of the backlog is attributable to orders outside of Israel, and 49% is scheduled to be performed during the remainder of 2026 and 2027.
Cash flow from operations in the first quarter of 2026 was $281.0 million, which compares with $183.6 million in the first quarter of 2025.
Asmentioned, Elbit Systems also announced this morning that it had been awarded worth at approximately $1.4 billion by a European customer. The contract is for extensive military modernization programs. It will be performed over a period of five years.
Elbit Systems president and CEO Bezhalel (Butzi) Machlis said, «We began 2026 with a strong quarter across all key metrics, including double?digit growth in revenue and profitability, with non?GAAP operating margins surpassing the 10% mark. Free Cash Flow generation remained very strong during the quarter, with backlog reaching a record level, exceeding $30 billion for the first time.
«Earlier today, we announced a significant European contract win, further strengthening our position as a trusted strategic partner to customers worldwide and reinforcing our ability to support their evolving defense needs and challenges.
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«Our proven experience working with numerous armed forces worldwide, together with our strong in-house development capabilities and leading-edge technological expertise, continue to drive growing demand for our solutions and position us as a trusted partner for long-term military modernization programs.
«Our strategic positioning reflects our evolution into a fully integrated end-to-end defense provider across land, sea and air. With demand rising well above historical levels, we continue to focus on order execution. To meet this demand and support sustainable long-term growth, we are scaling production capacity, increasing the use of automation, robotics and AI, while maintaining strict capital discipline and expanding operational margins. At the same time, we are increasing our investment in R&D and innovation to shape the company’s next-generation offering and strengthen our long-term growth platform.»
Published by Globes, Israel business news — en.globes.co.il — on May 26, 2026.
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