TLDR
- Elbit Systems posted Q4 non-GAAP EPS of $3.52, beating the $3.14 estimate
- Revenue hit $2.15 billion in Q4 — the first time ESLT crossed the $2 billion mark in a single quarter
- Full-year revenue rose 16% to $7.9 billion; net income climbed to $534 million
- Record backlog of $28.1 billion, up from $22.6 billion a year ago, with 72% from outside Israel
- ESLT has gained over 23% since the U.S.-Iran conflict began in late February
Elbit Systems (ESLT) reported a strong fourth quarter, sending its stock up roughly 16% on Tuesday. The Israeli defense contractor beat earnings estimates, crossed a major revenue milestone, and announced a new $1.6 billion contract — all in one day.
$ESLT Q4 2025 earnings: Record Backlog and Margin Expansion Mask Segment Divergence
Elbit Systems delivered a robust 25Q3, marking its seventh consecutive quarter of double-digit revenue growth. Total sales rose 12% YoY to $1.92B, while aggressive margin expansion pushed…
— Finsee (@Finsee_main) March 17, 2026
Q4 non-GAAP EPS came in at $3.52, topping the consensus estimate of $3.14. Revenue reached $2.15 billion, the first time the company has cleared $2 billion in a single quarter. Full-year revenue rose 16% to around $7.9 billion, with net income reaching $534 million.
CEO Bezhalel Machlis called the results “excellent,” pointing to growth in both revenue and margins. He also highlighted backlog expansion and cash flow as key contributors to the year’s performance.
The company closed the year with a record backlog of $28.1 billion, up from $22.6 billion twelve months earlier. About 72% of that backlog comes from customers outside Israel, reflecting global demand for its systems. More than half of the orders are scheduled for delivery by 2027.
Elbit also strengthened its balance sheet, moving to a net cash position of $429 million and generating over $550 million in free cash flow. The company raised its dividend to $1.00 per share, up from $0.75.
R&D Spending Reflects Shift in Defense Demand
Elbit spent over $500 million on research and development, with a focus on AI-driven systems, drones, electronic warfare, and command-and-control platforms. These categories have become central to modern defense contracts.
The new $1.6 billion deal announced alongside earnings adds to an already strong order pipeline. It was not broken down by geography or product type in the available disclosures.
ESLT Outpaces Larger Defense Peers
Since the U.S.-Iran conflict began in late February, ESLT has gained more than 23%, with most of that move coming after the earnings release. Larger U.S. defense names including RTX, Lockheed Martin, and Northrop Grumman posted gains of around 4% to 6% over the same window, but slipped slightly this week.
AeroVironment (AVAV), which is focused on drone systems, also outperformed, rising about 12% in the same period. The trend suggests investors are rotating toward companies tied to newer battlefield technology.
Over the past 12 months, ESLT is up more than 114%. The stock closed at $874.50 following the earnings release.
Despite the run, Wall Street’s consensus rating on ESLT remains a Hold. The average price target sits at $580, which would represent a 42.82% pullback from current levels.
The company saw two positive EPS revisions and one negative revision in the past 90 days heading into the print.
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