Elbit Systems (ESLT) Delivers Strong Q1 2026 Results with Record Backlog and +11% Stock Gain
Key Takeaways
- Elbit Systems reported Q1 2026 revenue of $2.19 billion, up 15% from $1.90 billion in the prior-year quarter.
- GAAP net income reached $160.8 million, while non-GAAP net income totaled $186.4 million.
- Non-GAAP earnings per share of $3.87 exceeded analyst consensus estimates of approximately $3.35 to $3.44.
- Order backlog expanded to a record $30.2 billion, signaling strong future revenue visibility.
- The company declared a quarterly dividend of $1.00 per share.
- Shares rose more than 11% in the session following the release.
Why These Results Matter
Elbit Systems Ltd. operates in the global aerospace and defense sector, supplying advanced systems for airborne, land, and naval applications. The first-quarter results provide investors with an early read on demand trends amid elevated geopolitical tensions and sustained defense spending. Strong backlog growth and revenue expansion highlight the company’s ability to convert orders into sales, which supports long-term visibility in a capital-intensive industry where multi-year contracts are common. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Q1 Numbers
Elbit Systems released its first-quarter 2026 results on May 26, 2026, for the period ended March 31, 2026. Revenue climbed to $2.19 billion, a 15% increase year over year. GAAP net income stood at $160.8 million, while non-GAAP net income reached $186.4 million. GAAP earnings per share were $3.34 and non-GAAP earnings per share were $3.87, surpassing consensus estimates. The order backlog grew to $30.2 billion. Operating cash flow totaled $281.0 million. The board declared a $1.00 per share dividend payable to shareholders of record on June 23, 2026.
Market Reaction
Following the release, ESLT shares advanced more than 11% in after-hours and regular trading. Investors responded positively to the revenue beat, earnings outperformance, and record backlog, which reinforced confidence in the company’s growth trajectory within the defense sector. The market interpreted the results as validation of sustained demand for the company’s technology solutions.
What to Watch Going Forward
Investors will focus on the pace of backlog conversion into revenue in coming quarters. Defense budgets and geopolitical developments remain central to order momentum, particularly for airborne and naval systems where Elbit Systems maintains a competitive position.
Supply chain stability and component availability will influence margins and delivery schedules. Management commentary on cost trends and operating leverage will help gauge profitability sustainability.
Upcoming catalysts include the next earnings release, expected in August 2026, along with any contract announcements that could further expand the backlog. Currency fluctuations and regional spending patterns also warrant attention given the company’s international operations.
Enhancing Research with AI Tools
When analyzing defense stocks like this one, I often turn to Tickeron’s AI Screener for a quick way to filter opportunities based on technical patterns, fundamentals, and AI signals. It allows scanning across industries with customizable criteria such as market cap, volatility, and performance metrics, which can help surface comparable names or breakout candidates more efficiently than manual reviews. One thing that stands out is how it integrates trend and pattern data in a single view. From what I see, this kind of tool fits naturally into a broader research process without replacing fundamental analysis. AI Screener
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Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
ESLT's RSI Indicator climbs out of oversold territory
The RSI Oscillator for ESLT moved out of oversold territory on October 01, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 12 similar instances when the indicator left oversold territory. In 9 of the 12 cases the stock moved higher. This puts the odds of a move higher at 75%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where ESLT advanced for three days, in 241 of 347 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
ESLT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 28, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ESLT as a result. In 46 of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 49%.
The Moving Average Convergence Divergence Histogram (MACD) for ESLT turned negative on September 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In 29 of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at 55%.
The 50-day moving average for ESLT moved below the 200-day moving average on September 21, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ESLT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
The Aroon Indicator for ESLT entered a downward trend on September 15, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 25 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 45 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 55 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 57 (best 1 - 100 worst), indicating steady price growth. ESLT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 90 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.485) is normal, around the industry mean (6.305). P/E Ratio (53.046) is within average values for comparable stocks, (58.116). ESLT's Projected Growth (PEG Ratio) (11.650) is slightly higher than the industry average of (2.564). Dividend Yield (0.005) settles around the average of (0.009) among similar stocks. P/S Ratio (4.143) is also within normal values, averaging (18.330).
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General Information
a manufacturer of airborne, ground and command, control and communication electronic systems
Industry AerospaceDefense
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