Investing.com — stock surged +7.9% to reach ILS 238,520 today after the Israeli defense technology company delivered a powerful one-two punch: a Q1 2026 earnings report that beat Wall Street expectations on both revenue and profit, released before the opening bell, paired with the announcement of a landmark $1.4 billion European military contract.
The company reported revenues of $2.19 billion, Non-GAAP net income of $186.4 million, and Non-GAAP EPS of $3.87 for the first quarter ended March 31, 2026. Critically, the order backlog expanded to $30.2 billion, up from $28.1 billion at year-end 2025, signaling robust demand visibility well into the future.
Compounding the earnings beat, Elbit Systems announced it received a contract valued at approximately $1.4 billion from an undisclosed European customer for military modernization programs. Gross profit for Q1 2026 reached $552.1 million, representing 25.2% of revenues, compared to 24.0% of revenues in Q1 2025 — a meaningful margin expansion that further impressed investors.
The earnings release also followed a strong track record: last quarter the company delivered a 31.9% earnings surprise, posting $3.56 per share against expectations of $2.70, while revenue of $2.15 billion topped forecasts by 2.9%.
From a broader context standpoint, Elbit entered 2026 with strong momentum, with results expected to benefit from its record order backlog, expanding international defense demand, and continued investment in advanced technologies and production capacity.
The index, the stock’s home benchmark, was trading modestly lower on the day, underscoring that today’s move was entirely company-specific rather than a broad market lift. U.S. equity indices were mildly positive, providing a supportive but not decisive macro backdrop.
The convergence of a Q1 earnings beat, a record backlog expansion to $30.2 billion, and a fresh $1.4 billion European contract created a rare simultaneous catalyst event that validated both near-term execution and long-term revenue visibility. Defense industry backlogs across the sector reached record levels in Q1 2026, driven by heightened security concerns and modernization programs, and Elbit’s exposure across multiple geographies — from Europe to the U.S. to the Middle East — positions it to benefit.
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