Revenue has accelerated to 15.9% growth in Q2 2026 with operating margins expanding to 9.6%, reflecting the conversion of a record $23.8B backlog into higher-scale, higher-margin execution.
Elbit Systems Ltd. (ESLT) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 8.55B | 7.94B | 6.83B | 5.97B | 5.51B | 5.28B | 4.66B | 4.51B | 3.68B | 3.38B | 3.26B | 3.11B | 2.96B | 2.93B | 2.89B | 2.82B | 2.67B | 2.83B | 2.64B | 1.98B | 1.52B | 1.07B | 939.92M | 897.98M | 827.46M | 764.5M | 591.08M | 436.03M | 414.67M | 372.34M | 307.5M |
| Revenue Growth % | 13.7% | 16.27% | 14.28% | 8.4% | 4.41% | 13.21% | 3.42% | 22.39% | 9.05% | 3.61% | 4.91% | 5.05% | 1.13% | 1.27% | 2.53% | 5.52% | -5.73% | 7.36% | 33.13% | 30.1% | 42.38% | 13.83% | 4.67% | 8.52% | 8.23% | 29.34% | 35.56% | 5.15% | 11.37% | 21.09% | - |
| Cost of Goods Sold | 6.41B | 6B | 5.19B | 4.49B | 4.14B | 3.92B | 3.5B | 3.37B | 2.71B | 2.37B | 2.29B | 2.21B | 2.13B | 2.1B | 2.07B | 2.09B | 1.87B | 1.98B | 1.87B | 1.45B | 1.15B | 786.62M | 689.63M | 673.56M | 605.31M | 529.48M | 411.71M | 297.68M | 291.3M | 263.3M | 223.8M |
| COGS % of Revenue | - | 75.62% | 75.95% | 75.18% | 75.08% | 74.27% | 75.01% | 74.79% | 73.5% | 70.3% | 70.39% | 71.13% | 72.11% | 71.8% | 71.76% | 74.02% | 70.12% | 70.01% | 70.91% | 73.42% | 75.48% | 73.52% | 73.37% | 75.01% | 73.15% | 69.26% | 69.65% | 68.27% | 70.25% | 70.71% | 72.78% |
| Gross Profit | 2.14B | 1.94B | 1.64B | 1.48B | 1.37B | 1.36B | 1.17B | 1.14B | 976.18M | 1B | 965.28M | 897.05M | 825.1M | 824.85M | 815.87M | 732.01M | 797.87M | 849.48M | 767.44M | 526.85M | 373.48M | 283.26M | 250.3M | 224.42M | 222.14M | 235.02M | 179.38M | 138.35M | 123.37M | 109.04M | 83.7M |
| Gross Margin % | 25.03% | 24.38% | 24.05% | 24.82% | 24.92% | 25.73% | 24.99% | 25.21% | 26.5% | 29.7% | 29.61% | 28.87% | 27.89% | 28.2% | 28.24% | 25.98% | 29.88% | 29.99% | 29.09% | 26.58% | 24.52% | 26.48% | 26.63% | 24.99% | 26.85% | 30.74% | 30.35% | 31.73% | 29.75% | 29.29% | 27.22% |
| Gross Profit Growth % | - | 17.87% | 10.71% | 7.99% | 1.12% | 16.56% | 2.52% | 16.42% | -2.68% | 3.91% | 7.61% | 8.72% | 0.03% | 1.1% | 11.45% | -8.25% | -6.08% | 10.69% | 45.67% | 41.07% | 31.85% | 13.17% | 11.53% | 1.02% | -5.48% | 31.02% | 29.65% | 12.15% | 13.14% | 30.28% | - |
| Operating Expenses | 1.34B | 1.25B | 1.13B | 1.12B | 1.01B | 951.25M | 839.42M | 814.86M | 683.35M | 678.62M | 660.61M | 628.48M | 578.23M | 585.46M | 612.82M | 616.35M | 590.52M | 587.03M | 518.44M | 418.89M | 281.62M | 215.95M | 184.59M | 170.94M | 164.35M | 183.03M | 192.15M | 98.33M | 85.1M | 77.9M | 60.7M |
| OpEx % of Revenue | - | 15.72% | 16.58% | 18.75% | 18.33% | 18.02% | 18% | 18.07% | 18.55% | 20.09% | 20.26% | 20.22% | 19.55% | 20.01% | 21.21% | 21.88% | 22.12% | 20.73% | 19.65% | 21.14% | 18.49% | 20.18% | 19.64% | 19.04% | 19.86% | 23.94% | 32.51% | 22.55% | 20.52% | 20.92% | 19.74% |
| Selling, General & Admin | 752.8M | 730.93M | 665.46M | 696.02M | 643.62M | 570.83M | 528.28M | 527.07M | 445.16M | 418.69M | 428.09M | 385.06M | 356.17M | 364.97M | 379.43M | 375.26M | 361.14M | 370.27M | 332.46M | 264.86M | 189.38M | 133.06M | 117.74M | 116.02M | 107.34M | 93.01M | 65.83M | 49.05M | 44.8M | 41.5M | 31.3M |
| SG&A % of Revenue | - | 9.21% | 9.75% | 11.65% | 11.68% | 10.81% | 11.33% | 11.69% | 12.08% | 12.4% | 13.13% | 12.39% | 12.04% | 12.48% | 13.14% | 13.32% | 13.53% | 13.07% | 12.6% | 13.36% | 12.43% | 12.44% | 12.53% | 12.92% | 12.97% | 12.17% | 11.14% | 11.25% | 10.8% | 11.15% | 10.18% |
| Research & Development | 582.72M | 517.14M | 466.4M | 424.42M | 435.65M | 395.09M | 359.75M | 331.76M | 287.35M | 265.06M | 255.79M | 243.42M | 228.01M | 220.48M | 233.39M | 241.09M | 234.13M | 216.75M | 184.98M | 127M | 92.23M | 71.9M | 66.85M | 54.92M | 57.01M | 60.1M | 44.27M | 32.66M | 31.6M | 27.9M | 21.8M |
| R&D % of Revenue | - | 6.51% | 6.83% | 7.1% | 7.9% | 7.48% | 7.72% | 7.36% | 7.8% | 7.85% | 7.85% | 7.83% | 7.71% | 7.54% | 8.08% | 8.56% | 8.77% | 7.65% | 7.01% | 6.41% | 6.05% | 6.72% | 7.11% | 6.12% | 6.89% | 7.86% | 7.49% | 7.49% | 7.62% | 7.49% | 7.09% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | -68.92M | -14.66M | -48.61M | -43.97M | -49.16M | -5.13M | -23.28M | 0 | -5.95M | 0 | 0 | 0 | -4.76M | 0 | 1M | 27.04M | 0 | 10.98M | 0 | 0 | 0 | 29.91M | 82.05M | 16.63M | 8.7M | 8.5M | 7.6M |
| Operating Income | 803.58M | 687.18M | 509.96M | 362.51M | 362.93M | 406.79M | 325.69M | 321.61M | 292.83M | 324.43M | 304.68M | 268.58M | 246.87M | 239.39M | 203.05M | 115.66M | 207.35M | 262.46M | 249M | 107.95M | 91.86M | 67.31M | 65.71M | 53.48M | 57.79M | 51.99M | -12.78M | 40.02M | 38.27M | 31.14M | 23M |
| Operating Margin % | 9.4% | 8.66% | 7.47% | 6.07% | 6.58% | 7.71% | 6.99% | 7.13% | 7.95% | 9.6% | 9.35% | 8.64% | 8.34% | 8.18% | 7.03% | 4.11% | 7.77% | 9.27% | 9.44% | 5.45% | 6.03% | 6.29% | 6.99% | 5.96% | 6.98% | 6.8% | -2.16% | 9.18% | 9.23% | 8.36% | 7.48% |
| Operating Income Growth % | - | 34.75% | 40.67% | -0.11% | -10.78% | 24.9% | 1.27% | 9.83% | -9.74% | 6.48% | 13.44% | 8.8% | 3.12% | 17.9% | 75.55% | -44.22% | -21% | 5.4% | 130.66% | 17.52% | 36.46% | 2.44% | 22.87% | -7.46% | 11.15% | 506.97% | -131.92% | 4.58% | 22.88% | 35.4% | - |
| EBITDA | 983.29M | 858.62M | 668.35M | 527.31M | 524.22M | 559.88M | 470.11M | 458.76M | 411.04M | 438.45M | 427.57M | 390.93M | 369.27M | 368.74M | 341.85M | 266.28M | 339.49M | 385.93M | 378.44M | 207.37M | 150.36M | 125.03M | 107.97M | 96.11M | 89.8M | 93.37M | 8.04M | 56.65M | 46.97M | 39.64M | 30.6M |
| EBITDA Margin % | 11.51% | 10.82% | 9.79% | 8.83% | 9.51% | 10.61% | 10.08% | 10.18% | 11.16% | 12.98% | 13.11% | 12.58% | 12.48% | 12.61% | 11.83% | 9.45% | 12.71% | 13.63% | 14.34% | 10.46% | 9.87% | 11.69% | 11.49% | 10.7% | 10.85% | 12.21% | 1.36% | 12.99% | 11.33% | 10.65% | 9.95% |
| EBITDA Growth % | 29.18% | 28.47% | 26.75% | 0.59% | -6.37% | 19.1% | 2.47% | 11.61% | -6.25% | 2.54% | 9.37% | 5.87% | 0.14% | 7.87% | 28.38% | -21.57% | -12.03% | 1.98% | 82.5% | 37.92% | 20.26% | 15.8% | 12.34% | 7.03% | -3.82% | 1061.04% | -85.8% | 20.63% | 18.48% | 29.55% | - |
| D&A (Non-Cash Add-back) | 179.71M | 171.43M | 158.39M | 164.8M | 161.29M | 153.09M | 144.42M | 137.15M | 118.2M | 114.02M | 122.89M | 122.35M | 122.41M | 129.35M | 138.8M | 150.62M | 132.14M | 123.47M | 129.44M | 99.41M | 58.5M | 57.72M | 42.26M | 42.63M | 32.01M | 41.38M | 20.82M | 16.63M | 8.7M | 8.5M | 7.6M |
| EBIT | 748M | 633.49M | 474.41M | 323.82M | 333.71M | 407.71M | 285.76M | 274.48M | 265.61M | 302.17M | 292.71M | 260.33M | 213.06M | 220M | 197.5M | 120.77M | 212.42M | 270.46M | 357.58M | 145.48M | 91.86M | 74.29M | 65.71M | 53.48M | 57.79M | 76.47M | 63.74M | 40.02M | 38.27M | 31.14M | 23M |
| Net Interest Income | -123.93M | -40.43M | -151.13M | -74.11M | -51.36M | -18.41M | -71.27M | -37.99M | -31.73M | -24.58M | -22.02M | -15.05M | -33.33M | -28.18M | -29.52M | -18.67M | -12.16M | -15.59M | -36.81M | -14.99M | -16.71M | -11.47M | -5.85M | -4.87M | -3.04M | -2.62M | 115K | 0 | 400K | 0 | 0 |
| Interest Income | 0 | 6.82M | -18.46M | 2.36M | 0 | 487.53K | 0 | 1.65M | 1.07M | 778.11K | 930.6K | 848.73K | 1.29M | 1.08M | 1.88M | 2.58M | 5.26M | 0 | 14.29M | 10.12M | 5.58M | 0 | 0 | 0 | 0 | 6.18M | 6.52M | 0 | 400K | 0 | 0 |
| Interest Expense | 123.93M | 47.25M | 132.67M | 76.47M | 51.36M | 18.9M | 71.27M | 39.63M | 32.8M | 25.35M | 22.95M | 15.9M | 34.63M | 29.25M | 31.41M | 16.77M | 13M | 15.59M | 21.04M | 25.11M | 22.29M | 11.47M | 5.85M | 4.87M | 3.04M | 8.79M | 6.41M | 0 | 0 | 0 | 0 |
| Other Income/Expense | -79.08M | -96.02M | -149.04M | -123.74M | -63.33M | -743K | -51.26M | -73.54M | -57.73M | -28.22M | -20.25M | -15.48M | -41.83M | -23.34M | -14.85M | 3.72M | 10.8M | 4.17M | 71.91M | -17.43M | 1.08M | -18.49M | 1.38M | 3.8M | -3.33M | -195K | -1.53M | 758K | -1.17M | -642K | 800K |
| Pretax Income | 724.5M | 591.16M | 360.92M | 238.77M | 299.6M | 406.05M | 274.43M | 248.07M | 235.1M | 296.21M | 284.43M | 253.1M | 205.04M | 216.05M | 188.2M | 119.38M | 218.16M | 266.62M | 320.92M | 90.52M | 92.94M | 48.82M | 67.09M | 57.28M | 54.46M | 51.8M | -14.3M | 40.78M | 37.1M | 30.5M | 23.8M |
| Pretax Margin % | 8.48% | 7.45% | 5.29% | 4% | 5.44% | 7.69% | 5.89% | 5.5% | 6.38% | 8.77% | 8.72% | 8.14% | 6.93% | 7.39% | 6.52% | 4.24% | 8.17% | 9.41% | 12.16% | 4.57% | 6.1% | 4.56% | 7.14% | 6.38% | 6.58% | 6.78% | -2.42% | 9.35% | 8.95% | 8.19% | 7.74% |
| Income Tax | 87.89M | 55.54M | 39.06M | 22.91M | 24.13M | 131.39M | 36.44M | 19.41M | 26.45M | 55.59M | 45.62M | 46.23M | 25.62M | 25.31M | 17.1M | 13.62M | 24.04M | 38.11M | 54.37M | 13.81M | 20.69M | 16.34M | 15.22M | 11.33M | 9.35M | 11M | 6.23M | 9.74M | 9.3M | 8.3M | 5.8M |
| Effective Tax Rate % | 12.13% | 9.39% | 10.82% | 9.6% | 8.05% | 32.36% | 13.28% | 7.83% | 11.25% | 18.77% | 16.04% | 18.27% | 12.5% | 11.72% | 9.09% | 11.41% | 11.02% | 14.29% | 16.94% | 15.26% | 22.27% | 33.46% | 22.68% | 19.79% | 17.16% | 21.24% | -43.53% | 23.89% | 25.07% | 27.21% | 24.37% |
| Net Income | 635.98M | 534.34M | 321.14M | 215.13M | 275.45M | 274.35M | 237.66M | 227.86M | 206.74M | 239.11M | 236.91M | 202.51M | 170.98M | 183.42M | 167.88M | 90.29M | 183.5M | 214.95M | 204.18M | 76.71M | 72.24M | 32.49M | 51.87M | 45.95M | 45.11M | 40.8M | -20.53M | 31.04M | 27.8M | 22.2M | 18M |
| Net Margin % | 7.44% | 6.73% | 4.7% | 3.6% | 5% | 5.2% | 5.1% | 5.05% | 5.61% | 7.08% | 7.27% | 6.52% | 5.78% | 6.27% | 5.81% | 3.2% | 6.87% | 7.59% | 7.74% | 3.87% | 4.74% | 3.04% | 5.52% | 5.12% | 5.45% | 5.34% | -3.47% | 7.12% | 6.7% | 5.96% | 5.85% |
| Net Income Growth % | 58.25% | 66.39% | 49.28% | -21.9% | 0.4% | 15.44% | 4.3% | 10.22% | -13.54% | 0.93% | 16.99% | 18.44% | -6.78% | 9.26% | 85.94% | -50.8% | -14.63% | 5.28% | 166.17% | 6.18% | 122.37% | -37.37% | 12.9% | 1.84% | 10.58% | 298.7% | -166.15% | 11.64% | 25.23% | 23.33% | - |
| Net Income (Continuing) | 636.61M | 535.62M | 321.86M | 215.86M | 275.47M | 274.66M | 237.99M | 228.66M | 208.66M | 240.62M | 238.81M | 206.86M | 179.41M | 190.74M | 171.1M | 105.76M | 194.12M | 228.51M | 266.55M | 76.71M | 72.24M | 32.49M | 51.87M | 45.95M | 45.11M | 40.8M | -20.53M | 31.04M | 27.8M | 22.2M | 18M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 681K | -616K | -15.98M | 921K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 351K | 375.08K | 3.44M | 2.76M | 2.45M | 14.63M | 13.21M | 18.43M | 21.95M | 9.66M | 7.4M | 8.05M | 12.23M | 17.16M | 33.51M | 29.38M | 38.76M | 24.33M | 76.47M | 20.09M | 6.87M | 12.91M | 4.34M | 4.12M | 4.67M | 5.99M | 4.96M | 1.78M | 2M | 0 | 0 |
| EPS (Diluted) | 13.22 | 11.39 | 7.18 | 4.82 | 5.90 | 6.44 | 5.76 | 5.36 | 4.83 | 5.59 | 5.54 | 4.74 | 4.01 | 4.34 | 3.97 | 2.09 | 4.25 | 5.00 | 4.78 | 1.81 | 1.72 | 0.78 | 1.26 | 1.14 | 1.13 | 1.04 | -0.65 | 1.16 | 1.04 | 0.92 | 0.84 |
| EPS Growth % | 51.87% | 58.64% | 48.96% | -18.31% | -8.39% | 11.81% | 7.46% | 10.97% | -13.6% | 0.9% | 16.88% | 18.2% | -7.6% | 9.32% | 89.95% | -50.82% | -15% | 4.6% | 164.09% | 5.23% | 120.51% | -38.1% | 10.53% | 0.89% | 8.65% | 260% | -156.03% | 11.54% | 13.04% | 9.52% | - |
| EPS (Basic) | - | 11.69 | 7.22 | 4.85 | 5.93 | 6.45 | 5.76 | 5.37 | 4.84 | 5.59 | 5.54 | 4.74 | 4.01 | 4.35 | 3.98 | 2.11 | 4.30 | 5.08 | 4.85 | 1.82 | 1.75 | 0.80 | 1.30 | 1.18 | 1.17 | 1.07 | -0.65 | 1.23 | 1.13 | 1.00 | 0.84 |
| Diluted Shares Outstanding | 48.12M | 46.92M | 44.71M | 44.59M | 44.58M | 44.28M | 44.22M | 43.85M | 42.79M | 42.79M | 42.75M | 42.73M | 42.68M | 42.3M | 42.28M | 43.13M | 43.22M | 42.98M | 42.76M | 42.34M | 41.88M | 41.62M | 41.17M | 40.23M | 39.92M | 39.36M | 31.57M | 26.49M | 26.73M | 24.13M | 21.43M |
| Basic Shares Outstanding | 48.1M | 45.71M | 44.48M | 44.38M | 44.32M | 44.2M | 44.2M | 43.79M | 42.75M | 42.79M | 42.74M | 42.71M | 42.65M | 42.14M | 42.19M | 42.76M | 42.65M | 42.3M | 42.08M | 42.04M | 41.34M | 40.75M | 39.9M | 39.06M | 38.56M | 37.98M | 31.57M | 25.13M | 24.6M | 22.2M | 21.43M |
| Dividend Payout Ratio | - | 22.63% | 27.7% | 41.49% | 31.52% | 28.86% | 32.9% | 27.46% | 36.43% | 31.49% | 28.89% | 34.46% | 39.93% | 41.19% | 30.15% | 68.26% | 34.41% | 35.44% | 16.05% | 35.73% | 33.67% | 66.58% | 167.12% | 32.39% | 28.19% | 29.74% | - | 28.96% | 17.63% | 15.32% | 5.56% |
Quick answers to the most common questions about buying ESLT stock.
For fiscal year 2025, Elbit Systems Ltd. (ESLT) reported total revenue of $7.94B. This represents a 2481.7% increase compared to $307.5M in 1996.
Elbit Systems Ltd. (ESLT) is profitable, generating $534.3M in net income for the fiscal year ending 2025 with a net profit margin of 6.7%.
Elbit Systems Ltd. (ESLT) reported an operating income of $687.2M, resulting in an operating profit margin of 8.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Elbit Systems Ltd. (ESLT) generated $1.94B in gross profit for the year, representing a gross profit margin of 24.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from cost inflation
Robust Acceleration Driven by Global Re-armament
Elbit's revenue growth has accelerated sharply from ~11.5% in early 2024 to nearly 16% by mid-2026, reflecting the conversion of a record $23.8 billion backlog into realized sales amid heightened global defense spending.
The acceleration from low-teens to mid-teens growth suggests the company is successfully navigating supply chain bottlenecks to meet surging demand. This trajectory appears sustainable given the multi-year backlog, which represents over three years of projected revenues at the current run rate, though future growth will increasingly depend on international export approvals.
Structural Margin Expansion Underway
Gross margins have expanded from a stable 24.0% floor to a new plateau above 25%, a meaningful improvement that appears driven by scale benefits and possibly a more favorable product mix in the current high-demand environment.
The 130+ basis point expansion in gross margin since 2024 suggests pricing power or operating efficiencies are being realized, which is notable given the company's historically lower margin profile versus US peers. However, operating margin expansion to 9.6% has been slower, indicating that SG&A and R&D growth are partially offsetting gross profit gains, a dynamic investors should monitor for signs of future operating leverage.
Modest Operating Leverage Emerging
Operating income has grown at a 92% compound rate over the last eight quarters, outpacing revenue growth of 57%, which indicates the business is beginning to scale its overhead more efficiently against a rising top line.
The inflection point occurred in late 2025, when operating margins began to expand alongside revenue growth, suggesting fixed cost absorption is improving. The leverage is present but constrained; SG&A as a percentage of revenue has not declined proportionally, likely due to the costs of supporting a more complex global operating footprint and a significant R&D investment cycle.
EPS Growth Outpaces Net Income Growth
Diluted EPS has surged by over 120% since 2024Q1, significantly outpacing the growth in reported net income, a divergence that appears partly attributable to a declining share count and minimal stock-based compensation.
The exceptionally low level of SBC, averaging just $4-7 million per quarter on a $2+ billion revenue base, makes ESLT's earnings exceptionally high quality and not diluted by non-cash charges. The EPS growth also benefits from a favorable tax rate and a low share count, though the primary driver remains the robust growth in underlying operational profitability.
The 2025 Profitability Breakout
The 2025 fiscal year marked a clear operational inflection, with operating margins expanding nearly 200 basis points and net margins expanding over 300 basis points versus the prior year, establishing a new, higher baseline for profitability.
This inflection was driven by a simultaneous acceleration in revenue growth and the stabilization of cost inflation, allowing the company to finally demonstrate operating leverage after years of flat margins. The lasting impact is a structurally higher profit base that can fund the R&D necessary to maintain its competitive position in electronic warfare and unmanned systems.
The Margin Sustainability Question
Despite top-line momentum, operating margins remain below 10%, trailing peers like L3Harris and Booz Allen Hamilton, which raises the question of whether the current profitability surge is sustainable or represents a cyclical peak tied to favorable contract mix.
Short-sellers would focus on the fact that gross margin expansion has not yet fully flowed to the bottom line due to persistent SG&A pressures, and that the current growth rate of ~16% is likely unsustainable in the long term. Furthermore, a significant portion of revenue is recognized on a percentage-of-completion basis, meaning any project delays or cost overruns in the massive backlog could lead to downward earnings revisions that would quickly erode the recent margin gains.