Elbit Systems Ltd. reported second-quarter 2026 non-GAAP diluted earnings per share of $4.14, beating the analyst consensus estimate of $3.69 by 12.2 percent. The company’s revenues rose 15.91 percent year-over-year to $2.287 billion, surpassing the analyst consensus estimate of $2.220 billion by 3.01 percent. This performance marks a significant improvement from the prior-year quarter, where non-GAAP EPS stood at $3.23 and sales were $1.973 billion.

The Board of Directors declared a dividend of $1.00 per share, payable on October 26, 2026, to shareholders of record on October 13, 2026. GAAP net income attributable to shareholders increased 38 percent to $173.6 million from $125.7 million in the same period last year. The company’s order backlog surged to a record $32.0 billion as of June 30, 2026, with approximately 73 percent of orders originating outside Israel, providing substantial long-term visibility.

Segment Performance

Revenues grew across three of the company’s five reportable segments during the quarter. The Land segment saw the strongest growth, with revenues increasing by 32 percent year-over-year to $749.5 million, driven mainly by ammunition and munition sales in Israel. ISTAR and EW revenues jumped 22 percent to $402.1 million, fueled by increased sales of airborne and land High Power Laser, Electronic Warfare, and Maritime systems in Asia-Pacific. C4I and Cyber revenues rose 11 percent to $241.1 million, largely due to higher radio systems and command and control system sales in Europe. Elbit Systems of America (ESA) revenues grew 17 percent to $471.7 million, benefiting from a favorable project mix and increased sales of Night-Vision and Maritime systems. Conversely, Aerospace revenues declined 8 percent to $422.7 million due to an unfavorable project mix and decreased training and simulation sales in Europe, partially offset by UAV sales in Israel.

Financial Metrics

GAAP gross profit improved to $579.0 million (25.3 percent of revenues) from $472.9 million (24.0 percent of revenues) in the prior-year quarter. Non-GAAP gross profit amounted to $586.5 million (25.6 percent of revenues). Operating income expanded to $218.8 million (9.6 percent of revenues), up from $157.8 million (8.0 percent of revenues). Research and development expenses, net, were $159.1 million (7.0 percent of revenues), compared to $129.7 million (6.6 percent of revenues) previously. GAAP diluted earnings per share rose to $3.61 from $2.69.

Cash flow provided by operating activities for the six months ended June 30, 2026, was $517.8 million, a substantial increase from $304.0 million in the corresponding period of 2025. This improvement was driven by a strong increase in net income and higher contract liabilities. Financial expenses, net, decreased to $22.0 million from $31.2 million, primarily due to a reduction in average debt. However, taxes on income rose to $32.7 million (effective tax rate of 16.4 percent) from $7.1 million (5.6 percent), mainly reflecting the implementation of OECD Pillar II global minimum tax rules.

What the Numbers Show

The divergence between the rise in net income and the sharp increase in the effective tax rate highlights the impact of regulatory changes on bottom-line profitability. While operational metrics such as gross margin and operating income expanded significantly, the effective tax rate nearly tripled year-over-year due to the OECD Pillar II implementation. Despite this headwind, the company maintained strong cash generation, evidenced by the 70 percent year-over-year increase in operating cash flow for the first half of 2026, suggesting that core business operations remain resilient against tax-related pressures.

Elbit Systems Ltd shareholders approved the election of seven new board members and the re-appointment of its independent auditor at the company's Annual General Meeting held on August 5, 2026. The resolutions, detailed in the Proxy Statement dated July 1, 2026, were passed by the required majority at the meeting held at the company's offices in Haifa. These approvals ensure continuity in governance and financial oversight for the defense technology firm, which reported $2,188.8 million in revenues for the three months ended March 31, 2026.

The shareholders elected seven members who are not classified as "External Directors" under the Israeli Companies Law, 5759-1999. These directors will serve until the close of the next Annual General Meeting of Shareholders. The newly elected non-external directors are:

In addition to the new elections, the shareholders re-elected Noaz Bar Nir to an additional three-year term as an External Director. This move maintains the balance between internal leadership and external oversight on the Board.

Governance and Auditor Approvals

The meeting also addressed key governance protections and audit continuity. Shareholders approved the extension of indemnification letters for Michael Federmann and David Federmann for an additional three years, commencing on December 1, 2026. Furthermore, exemption letters for both Federmanns were extended for three years, starting April 7, 2027.

Kost, Forer, Gabbay & Kasierer, a member of Ernst & Young Global, was re-appointed as the company's independent auditor. Their term covers the fiscal year ending December 31, 2026, and continues until the close of the next Annual General Meeting of Shareholders.

Corporate Context

Elbit Systems operates as a leading global defense technology company, developing and manufacturing advanced solutions across multiple domains. The company employs over 20,000 people in dozens of countries across five continents. As of March 31, 2026, Elbit Systems reported an order backlog of $30.2 billion, reflecting sustained demand for its defense technologies.