Defense contractor Elbit Systems Ltd. (ESLT) is having a good Tuesday. The Israel-based company reported first-quarter results that beat analyst expectations and announced a massive $1.4 billion contract from a European customer. Shares were up 7.75% at $827.35 at the time of publication.

Earnings Snapshot

Here's how the numbers looked for the quarter ended March 31, 2026:

• Revenue hit $2.19 billion, topping the consensus estimate of $2.16 billion.
• Adjusted earnings per share came in at $3.87, well above the $3.37 analysts were expecting.
• Adjusted gross margin expanded to 25.5% from 24.3% a year ago, while adjusted operating margin grew to 10.1% from 8.7%.
• The order backlog stood at $30.2 billion, with 71% from outside Israel and 49% scheduled for delivery in 2026 and 2027.
• Operating cash flow was $281 million, up from $183.6 million in the same quarter last year.

Segment Revenues

Revenue growth was broad-based across Elbit's segments. Aerospace revenue rose 2% year over year, driven by project mix. The C4I and Cyber segment saw a 17% jump, thanks to stronger demand for radio and command-and-control systems in Europe. ISTAR and EW revenue also climbed 17%, fueled by higher sales of airborne and land-based high-power laser and electronic warfare systems. The Land segment led the pack with 27% growth, driven by increased ammunition and munitions sales in Israel and Europe. Elbit Systems of America posted 5% growth, led by higher night-vision system sales.

Dividend

The board declared a dividend of $1.00 per share, payable on July 6 to shareholders of record on June 23, 2026.

Military Modernization Contract

In a separate release, Elbit disclosed a $1.4 billion contract from a European customer to support broad military modernization initiatives over five years. The program includes advanced capabilities aimed at enhancing battlefield mobility and survivability across multiple domains. That means autonomous unmanned systems, networked land electronic warfare solutions, precision-guided artillery and air-to-ground munitions, electro-optical targeting and reconnaissance systems, and software-defined radios.

It's a big win for Elbit, and the market seems to agree.