Modest 2Q26 Beat, Led by Elbit Systems of America

Research evidence excerpt

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M

Update

August 11, 2026 12:26 PM GMT

Morgan Stanley & Co. LLC

Elbit Systems Ltd | Europe

Kristine T Liwag

Equity Analyst

Modest 2Q26 Beat, Led by Elbit

Systems of America

Justin M Lang

Equity Analyst

Jason T Holcomb

Research Associate

Gabrielle Knafelman

AlphaSignals Earnings Reaction

Research Associate

Unchanged

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Shaina C Zuber

Source: Company data, Morgan Stanley Research

Research Associate

Kyle Benvenuto

ESLT Reports Adj. EPS of $4.14, 9% Above Cons. and 5% Above MSe

Research Associate

ESLT reported a modest top- and bottom-line beat, with adj. EPS of $4.14, 9% above

cons. of $3.81 and 5% above MSe of $4.14. This bottom-line beat was driven by

modest revenue and operating income beats, further increased by below-the-line

items. Elbit reported 2Q26 revenue of $2.28bn, 1.2% ahead of cons. of $2.25bn and

1.3% ahead of MSe of $2.25bn. The revenue beat was primarily led by strength in

Elbit Systems of America (ESA), as well as the Land and ISTAR & EW segments,

partially offset by below-expectations results in Aerospace and C4I & Cyber. ESLT

Elbit Systems Ltd (ESLT.O, ESLT US)

Aerospace & Defence | Israel

Stock Rating

Industry View

Price target

Shr price, close (Aug 10, 2026)

Mkt cap, curr (mm)

52-Week Range

Equal-weight

Attractive

$845.00

$846.04

$40,715

$1,016.06-432.85

reported Adj. Operating profit of $238mn, 4% ahead of consensus and 3% ahead of

MSe. Lower-than-anticipated interest expense ($22mn vs. MSe of $30mn) also

widened the bottom-line beat. Backlog grew ~6% quarter-over-quarter to $32bn,

which represents an all-time-high level for the company and a ~3.7x backlog to LTM

revenue ratio. We look forward to hearing more around segment-level results and

drivers of the quarter on the 9 AM ET call with management.

ESLT Above Estimates on Revenue, Adj. Net Income, Operating Margin; Below

Estimates on Operating Cash Flow

Elbit reported total revenues of $2.28bn, above consensus of $2.25bn by 1.2% and

above MSe of $2.25bn by 1.3%. Adj.…