What did Elbit Systems (NASDAQ:ESLT) report in Q1 2026 earnings?

Elbit Systems reported Q1 2026 revenue of $2.19 billion, up 15.4% year over year. GAAP net income rose to $160.8 million, while diluted EPS increased to $3.34 from $2.35 a year earlier. The company also reported record order backlog growth and stronger operating margins.

Why are investors focused on Elbit Systems’ (NASDAQ:ESLT) $30 billion backlog?

Elbit’s order backlog reached a record $30.2 billion for the first time, giving the company strong long-term revenue visibility. A backlog represents signed contracts that are expected to generate future revenue over time. In defense industries, large backlogs are often viewed positively because they support predictable multi-year cash flows.

What is driving Elbit Systems’ (NASDAQ:ESLT) growth right now?

Growth is being fueled by increased global military procurement, especially across Europe, Israel, and parts of Asia. Rising geopolitical tensions and defense spending have increased demand for ammunition, electronic warfare systems, surveillance technologies, and precision-guided munitions. Elbit appears to be benefiting directly from this broader defense spending cycle.

Which Elbit Systems (NASDAQ:ESLT) business segments performed strongest in Q1 2026?

The land systems division was one of the strongest performers, with revenue rising 27%, largely due to ammunition demand from Israel and Europe. The ISTAR and electronic warfare segment also grew 17% year over year. These areas are increasingly important in modern military procurement strategies focused on surveillance and precision warfare.

How profitable is Elbit Systems (NASDAQ:ESLT) now?

Profitability improved meaningfully during the quarter. Non-GAAP operating margin expanded to 10.1%, while gross margin increased to 25.2% from 24% a year earlier. Higher-margin product deliveries and better operational scale helped support earnings growth.

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Elbit Systems backlog tops $30B as rising demand lifts earnings

Written by Isaac FrancisPublished May. 26 2026Last Updated May. 26 2026

Elbit Systems (NASDAQ:ESLT) reported double-digit revenue growth for the first quarter and an order backlog that surpassed $30 billion for the first time, fueled by a global acceleration in military procurement that has offset localized operational challenges.

The Haifa, Israel-based defense technology company announced Tuesday that its net revenue for the three months ended March 31, 2026, rose 15.4% to $2.19 billion, up from $1.90 billion in the corresponding prior-year period.

The results, paired with a landmark $1.4 billion European contract win announced earlier in the day, sent the company's Nasdaq-listed shares up as much as 8% in morning trading.

The company's order backlog expanded to a record $30.2 billion, up from $28.1 billion at the end of fiscal year 2025.

The accumulation of new business provides long-term revenue visibility as governments in Europe, Asia, and Israel adjust spending priorities amid ongoing geopolitical instability.

Profitability metrics tracked higher on improved operational scale and efficiency.

GAAP net income for the quarter advanced to $160.8 million, or $3.34 per diluted share, compared with $106.8 million, or $2.35 per share, in the opening quarter of 2025.

On an adjusted basis, non-GAAP net income reached $186.4 million, yielding a diluted EPS of $3.87.

Elbit’s non-GAAP operating margin expanded to 10.1%, surpassing the company's long-term internal baseline threshold.

The improvement was supported by higher gross profit margins, which rose to 25.2% from 24% year-over-year, driven by favorable product mix dynamics—particularly higher-volume deliveries of ammunition, precision-guided munitions, and electronic warfare systems.

Operationally, revenue growth was broad-based across core divisions.

Land systems revenue climbed 27%, primarily on ammunition sales to Israel and Europe, while the intelligence, surveillance, target acquisition, reconnaissance (ISTAR), and electronic warfare (EW) segment recorded a 17% sales increase.

The financial performance significantly boosted cash generation.

Cash flow provided by operating activities reached $281 million during the first quarter, representing a sharp reversal from net outflows in previous quarters, supported by higher upfront customer deposits and milestone collections on contract liabilities.

In tandem with the financial results, the board of directors declared a cash dividend of $1 per share for the first quarter, maintaining its established capital allocation strategy.