Elbit Systems (NASDAQ:ESLT) Issues Quarterly Earnings Results

Elbit Systems (NASDAQ:ESLT) posted its quarterly earnings data 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. Elbit Systems had a net margin of 7.14% and a return on equity of 16.15%. The business had revenue of $2.29 billion during the quarter, compared to the consensus estimate of $2.25 billion.

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 Performance

Shares of NASDAQ:ESLT traded down $72.04 during trading on Tuesday, reaching $774.00. 87,247 shares of the stock were exchanged, compared to its average volume of 132,183. Elbit Systems has a 12 month low of $432.85 and a 12 month high of $1,016.06. The stock has a 50-day moving average price of $796.99 and a 200-day moving average price of $808.39. The company has a current ratio of 1.41, a quick ratio of 0.86 and a debt-to-equity ratio of 0.06. The firm has a market cap of $34.40 billion, a PE ratio of 62.85, a PEG ratio of 3.65 and a beta of 0.17.

Elbit Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, July 6th. Shareholders of record on Tuesday, June 23rd were given a dividend of $1.00 per share. The ex-dividend date was Tuesday, June 23rd. This represents a $4.00 annualized dividend and a yield of 0.5%. Elbit Systems’s dividend payout ratio (DPR) is 26.96%.

Analyst Upgrades and Downgrades

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

Institutional Trading of Elbit Systems

Several hedge funds have recently added to or reduced their stakes in ESLT. Captrust Financial Advisors lifted its stake in Elbit Systems by 2.5% in the 4th quarter. Captrust Financial Advisors now owns 741 shares of the aerospace company’s stock valued at $428,000 after purchasing an additional 18 shares during the last quarter. Arax Advisory Partners raised its position in Elbit Systems by 25.0% during the 4th quarter. Arax Advisory Partners now owns 150 shares of the aerospace company’s stock worth $87,000 after purchasing an additional 30 shares during the last quarter. Cibc World Market Inc. increased its stake in shares of Elbit Systems by 7.0% in the fourth quarter. Cibc World Market Inc. now owns 608 shares of the aerospace company’s stock valued at $351,000 after buying an additional 40 shares during the period. Vident Advisory LLC raised its position in shares of Elbit Systems by 2.2% during the third quarter. Vident Advisory LLC now owns 1,827 shares of the aerospace company’s stock worth $931,000 after acquiring an additional 40 shares during the last quarter. Finally, Daiwa Securities Group Inc. boosted its holdings in Elbit Systems by 6.4% in the fourth quarter. Daiwa Securities Group Inc. now owns 681 shares of the aerospace company’s stock valued at $393,000 after acquiring an additional 41 shares during the last quarter. 17.88% of the stock is owned by institutional investors and hedge funds.

Key Elbit Systems News

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

• Positive Sentiment: Elbit reported non-GAAP earnings of $4.14 per share, above the $3.69 consensus estimate and up from $3.23 a year earlier. Revenue reached approximately $2.3 billion, also exceeding the $2.25 billion estimate. Elbit Systems Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Order backlog reached a record—or near-record—$32.0 billion, supporting visibility for future revenue and reinforcing demand for the company’s defense technologies. GAAP net income was $173.6 million, while non-GAAP net income totaled $199.1 million. Elbit Systems Reports Second Quarter 2026 Results
• Positive Sentiment: The earnings and revenue beats indicate stronger-than-expected quarterly execution, with profit growth likely supported by ongoing defense demand. Elbit Systems Q2 Profit, Revenue Jump
• Neutral Sentiment: GAAP EPS was $3.61, below the $4.14 non-GAAP figure widely cited in earnings coverage, highlighting the effect of adjustments investors may examine when assessing earnings quality. Elbit Systems Second Quarter 2026 Results
• Negative Sentiment: Investors focused on a decline in aerospace sales and increased research-and-development spending, which could pressure near-term margins despite the overall earnings beat. Elbit Systems Shares Fall as Aerospace Sales Drop and R&D Spending Climbs
• Negative Sentiment: At roughly 63 times earnings, ESLT’s elevated valuation leaves less room for operational disappointments; investors may be taking profits or demanding clearer margin improvement even with the record backlog.

Elbit Systems Company Profile

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.