The record backlog and strong cash flow provide multi-year revenue visibility. Traders should watch for continued order flow from Europe and Israel, and monitor the impact of the OECD Pillar II tax rules on future net income. The stock may re-rate higher if the company sustains double-digit revenue growth and margin expansion.
Price Chart
Executive Summary
Elbit Systems reported Q2 2026 GAAP diluted EPS of $3.61 on revenue of $2.287B, a 16% YoY revenue increase. Non-GAAP EPS of $4.14 beat the consensus estimate of $3.68 by 12.5%. The record $32B backlog and strong cash flow from operations ($517.8M in H1 2026) signal robust demand, though the ongoing Middle East conflict and a higher effective tax rate (16.4% vs 5.6%) introduce uncertainty.
Key Financial Metrics
Key Facts
- Revenue of $2.287B in Q2 2026, up 16% YoY from $1.973B.
- GAAP diluted EPS of $3.61, up 34% YoY from $2.69.
- Non-GAAP diluted EPS of $4.14, beating consensus of $3.68 by 12.5%.
- Order backlog reached a record $32.0B, with 73% from outside Israel.
- Cash flow from operations was $517.8M in H1 2026, up 70% from $304.0M in H1 2025.
- Gross margin improved to 25.3% (GAAP) from 24.0% a year ago.
- Operating margin expanded to 9.6% (GAAP) from 8.0%.
- Dividend declared of $1.00 per share, payable Oct 26, 2026.
- Recent contract awards: $350M for MBT upgrades and $370M+ from U.S. Customs and Border Protection.
- Effective tax rate rose to 16.4% from 5.6% due to OECD Pillar II global minimum tax rules.
Financial Impact
Revenue +16% YoY to $2.287B; Non-GAAP EPS +28% YoY to $4.14; backlog +$32B record
Risk Factors
- Escalation of Middle East conflict disrupting operations and supply chain.
- Higher effective tax rate from OECD Pillar II rules compressing net income growth.
- Execution risk on the $32B backlog conversion to revenue.
- Geopolitical tensions limiting engagement from certain countries.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302848083 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 11, 2026 7w ago | 6-K | $776.08 $714.40 | ▼ −7.95% | ▼ −6.89% | $696.23 (−10.29%) |
Aug 11, 2026 7w ago | Press Release | $776.08 $714.40 | ▼ −7.95% | ▼ −6.89% | $696.23 (−10.29%) |
Aug 6, 2026 8w ago | Press Release | $857.00 $701.22 | ▼ −18.18% | ▼ −18.78% | $696.23 (−18.76%) |
Jul 20, 2026 10w ago | 6-K | $754.85 $782.84 | ▲ +3.71% | ▼ −0.41% | $696.23 (−7.77%) |
Jul 20, 2026 10w ago | Press Release | $754.85 $782.84 | ▲ +3.71% | ▼ −0.41% | $696.23 (−7.77%) |
Jul 13, 2026 11w ago | 6-K | $735.40 $846.04 | ▲ +15.04% | ▲ +11.86% | $696.23 (−5.33%) |
Jul 13, 2026 11w ago | Press Release | $735.40 $846.04 | ▲ +15.04% | ▲ +11.86% | $696.23 (−5.33%) |
Jul 1, 2026 13w ago | 6-K | $759.98 $769.10 | ▲ +1.20% | ▲ +3.39% | $696.23 (−8.39%) |
May 28, 2026 18w ago | 6-K | $892.63 $715.72 | ▼ −19.82% | ▼ −16.67% | $696.23 (−22.00%) |
May 27, 2026 18w ago | GOVT-CONTRACT | $828.81 $732.71 | ▼ −11.59% | ▼ −9.69% | $696.23 (−16.00%) |
US Market Status
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