Elbit Systems Roars into Q1 2026 with Record Revenues and Backlog
Elbit Systems, a leading global defense electronics company, has kicked off the year on a high note. According to the company's recent conference call transcript for the first quarter of 2026, Elbit Systems has achieved double-digit growth in revenues, operating profit, and EPS.
The company's backlog has reached an impressive milestone, surpassing $30 billion for the first time. This demonstrates the strength of Elbit's execution and the outstanding performance of its global teams. The quarter's results reflect the increasing demand from key markets.
In terms of revenues, Europe contributed 23% in the first quarter of 2026, North America 20%, Asia-Pacific 16%, and Israel accounted for 37%. The European market continues to be a significant growth engine, with strengthening demand trends. The shift in Europe is substantial, and Elbit Systems is well-positioned to capitalize on this trend.
The company's segment performance was equally impressive. C4I and Cyber revenues increased by 17% due to sales of radio systems and command and control system sales in Europe. ISTAR and EW revenues also rose by 17%, mainly driven by the sale of airborne high-power laser and electronic warfare systems.
Land revenues experienced a remarkable surge, increasing by 27% primarily due to ammunition and munition sales in Israel and Europe. Elbit Systems of America saw a 5% increase in revenues, largely attributed to an uptick in night vision system sales that was partially offset by a decrease in medical device sales.
Aerospace revenues remained relatively stable, increasing by 2% in the first quarter of 2026 compared to the same period last year. This modest growth is mainly due to project mix. On a positive note, Elbit Systems' gross margins have expanded significantly, reaching 25.5% on a non-GAAP basis.
The company's operating income also saw substantial growth, increasing by 49.4% to $222 million or 10.1% of revenues in the first quarter of 2026. Elbit Systems' commitment to investing in advanced R&D initiatives is evident, with net R&D expenses totaling $150.4 million or 6.9% of revenues.
Elbit Systems continues to prioritize investment in cutting-edge battlefield technologies, including AI capabilities, counter UAS solutions, and multispectral sensing. This strategic focus positions the company for sustainable, profitable growth and strengthens its leadership position in the years ahead.
