Elbit Systems Ltd. (NASDAQ:ESLT) shares are trading higher on Tuesday after the Israel-based company reported upbeat first-quarter results and won a $1.4 billion contract.

Earnings Snapshot

  • Revenue of $2.19 billion, beating the consensus of $2.16 billion.
  • Adjusted EPS of $3.87, beating the consensus of $3.37.
  • Adjusted gross margin expanded to 25.5% from 24.3% a year ago. Also, adjusted operating margin expanded to 10.1% from 8.7% in the same quarter last year.
  • As of March 31, 2026, the order backlog stood at $30.2 billion. Of this, 71% are from outside Israel and 49% scheduled for 2026 and 2027.
  • Operating cash flow for the first quarter totaled $281.0 million, versus $183.6 million in the same quarter a year ago.

Segment Revenues

Aerospace revenue rose 2% year over year (Y/Y), primarily driven by project mix.

C4I and Cyber revenue increased 17% Y/Y, supported by stronger demand for radio and command-and-control systems in Europe.

ISTAR and EW revenue also climbed 17% Y/Y on higher sales of airborne and land-based high-power laser and electronic warfare systems.

Land segment revenue advanced 27% Y/Y, fueled by increased ammunition and munitions sales in Israel and Europe.

Elbit Systems of America posted 5% Y/Y revenue growth, led by higher night-vision system sales.

Dividend

The board declared a dividend of $1.00 per share, payable on July 6 to the shareholders of record on June 23, 2026.

Military Modernization Contract

In a separate release today, Elbit Systems disclosed winning a $1.4 billion contract from a European customer to support broad military modernization initiatives over a five-year period.

The program includes advanced capabilities aimed at enhancing battlefield mobility and survivability across multiple domains.

This includes autonomous unmanned systems, networked land electronic warfare solutions, precision-guided artillery and air-to-ground munitions, electro-optical targeting and reconnaissance systems, and software-defined radios.

ESLT Price Action: Elbit Systems shares were up 7.75% at $827.35 at the time of publication on Tuesday, according to Benzinga Pro data.

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