Elbit Systems Ltd.

Q2 FY26Aerospace and Defense

Elbit Systems Ltd. Q2 FY26 Results — Earnings Call Analysis

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹893

Market cap₹41.5K Cr

P/E69.0

Published29 May 2026

What the Q2 FY26 call signalled

2 of 4 strong

RevenueRank 3

MarginRank 3

CapexYes

Order bookYes

Not discussed on this call: fundraise.

The short version

- Elbit Systems targets mid-teens revenue growth for 2026 and expects similar growth for 2027, driven by high demand and conversion effectiveness. - The company is targeting mid-teens revenue growth internally for 2026 and expects similar high demand and conversion effectiveness for 2027.

From Elbit Systems Ltd.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Rank 3

Elbit Systems targets mid-teens revenue growth for 2026 and expects similar growth for 2027, driven by high demand and conversion effectiveness.
The company sees a strong and growing funnel of new opportunities across regions including the U.S., Europe, Asia, and the Gulf.
Demand is particularly strong in the land segment with expansions also expected in ISR, C4, and electronic warfare.
Backlog has reached a record $30.2 billion, more than $7 billion higher than the previous year, supporting sustained growth.
CapEx is increasing, especially in land domain facilities, robotics, and automation to meet ramped production requirements.
Elbit is scaling production capacity mainly in Israel and Europe to convert demand into revenue growth.
Strong contracts and modernization programs in Europe and other markets underpin revenue potential.
CEO indicates continuing sizable order inflows, with incremental deliveries from new technologies soon.

Profitability & Margins

The company is targeting mid-teens revenue growth internally for 2026 and expects similar high demand and conversion effectiveness for 2027.
Elbit Systems aims to continue expanding margins as a key priority.
Operating income and EPS have shown strong growth, with Q1 2026 GAAP diluted EPS up 42% compared to Q1 2025, and non-GAAP diluted EPS up 51%.
The backlog reached a record $30.2 billion, supporting strong revenue visibility and future growth momentum.
Continued investments in R&D (around 7% of revenue), CapEx (~3% of revenue), mainly in land domain and automation, support scaling production and innovation.
The company sees a growing funnel of new opportunities and significant contracts, anticipating sustained revenue and profitability growth.
No formal long-term guidance is provided; however, management is optimistic about future orders and bottom-line improvement.

See what Elbit Systems Ltd. said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

Elbit Systems is increasing CapEx investment to meet high market demand.
Focus on expanding production capacity, mainly in Israel and Europe.
Recent investments include new ERP system (in place company-wide since 4 years ago).
Heavy investment in AI performance and solutions, a key priority.
Increasing investment primarily in land domain facilities.
Significant spending on robotics and automation to improve efficiency and cost-effectiveness.
Targeting approximately 3% of revenues for CapEx investment in the near future.
Actively pursuing acquisitions to enhance portfolio; announced acquisition of a U.S. company in the U.K.
Prioritize R&D at nearly 7% of revenue, self-funded, focusing on AI, counter-UAS, advanced autonomous platforms, multi-spectral sensing, and precision munitions.

Fundraising & Capital Structure

No explicit mention of current or future fundraising through debt or equity in the call.
The company maintains a very strong balance sheet with a healthy net cash position.
Capital deployment priorities include:
- Significant investment in R&D (~7% of revenue).
- Increased CapEx to expand production capacity.
- Doubled dividend payout to shareholders.
The company is actively looking for acquisitions to enhance its portfolio but no mention of new debt or equity issuance to finance these acquisitions.
Financial expenses decreased due to reduced average debt, indicating a cautious approach toward leverage.
Overall, Elbit Systems appears focused on internal funding and disciplined capital management without signaling current or planned fundraising through debt or equity.

See what Elbit Systems Ltd. said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Yes

Backlog of orders as of March 31, 2026, reached a record $30.2 billion, over $7 billion higher than March 31, 2025.
Approximately 71% of the backlog is generated from outside Israel.
About 49% of the backlog is scheduled for execution in the remainder of 2026 and 2027; the rest extends into 2028 and beyond.
Strong order inflow: Q1 2026 contracts totaling over $4 billion, nearly double quarterly revenue.
Notable contracts include a $1.4 billion European military modernization program over 5 years.
Strong funnel of new opportunities globally, including the US, Europe, Asia, the Gulf, and Far East.
Growing order momentum seen especially in land projects, ISR, C4, advanced defense solutions, and counter-UAS systems.
Ongoing efforts to convert the strong demand pipeline into sustained revenue growth.

How does Elbit Systems Ltd. rank vs peers in Aerospace and Defense?

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Rev 3Mar 3

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Frequently Asked Questions

What were Elbit Systems Ltd. Q2 FY26 results?

What is Elbit Systems Ltd. share price analysis?

Elbit Systems Ltd. currently shows a below-average growth signal. The stock trades at a P/E of 69.0 with a market cap of $41,515. Investors should review the full earnings analysis for detailed insights.

Is Elbit Systems Ltd. planning capital expenditure?

- Elbit Systems is increasing CapEx investment to meet high market demand. - Focus on expanding production capacity, mainly in Israel and Europe. - Recent investments include new ERP system (in place company-wide since 4 years ago). - Heavy investment in AI performance and solutions, a key priority. - Increasing investment primarily in land domain facilities. - Significant spending on robotics and automation to improve efficiency and cost-effectiveness. - Targeting approximately 3% of revenues for CapEx investment in the near future. - Actively pursuing acquisitions to enhance portfolio; announced acquisition of a U.S.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.