Elbit Systems (NASDAQ:ESLT) Shares Gap Down - What's Next?

Key Points

• Elbit Systems shares fell 8.9%, opening at $795 after previously closing at $846.04, despite the company reporting better-than-expected quarterly earnings and revenue.
• Second-quarter non-GAAP EPS was $4.14 versus the $3.69 consensus, while revenue reached about $2.3 billion. The company also reported a near-record $32 billion order backlog, supporting future revenue visibility.
• Investors remain concerned about declining aerospace sales, higher research-and-development spending and a rich valuation of roughly 63 times earnings. Analysts’ average rating is Hold, with a consensus price target of $803.75.

Elbit Systems Ltd. (NASDAQ:ESLT - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $846.04, but opened at $795.00. Elbit Systems shares last traded at $790.6570, with a volume of 43,551 shares traded.

Trending Headlines about Elbit Systems

Here are the key news stories impacting Elbit Systems this week:

• Positive Sentiment: Elbit reported non-GAAP earnings of $4.14 per share, above the $3.69 consensus estimate and up from $3.23 a year earlier. Revenue reached approximately $2.3 billion, also exceeding the $2.25 billion estimate. Elbit Systems Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Order backlog reached a record—or near-record—$32.0 billion, supporting visibility for future revenue and reinforcing demand for the company’s defense technologies. GAAP net income was $173.6 million, while non-GAAP net income totaled $199.1 million. Elbit Systems Reports Second Quarter 2026 Results
• Positive Sentiment: The earnings and revenue beats indicate stronger-than-expected quarterly execution, with profit growth likely supported by ongoing defense demand. Elbit Systems Q2 Profit, Revenue Jump
• Neutral Sentiment: GAAP EPS was $3.61, below the $4.14 non-GAAP figure widely cited in earnings coverage, highlighting the effect of adjustments investors may examine when assessing earnings quality. Elbit Systems Second Quarter 2026 Results
• Negative Sentiment: Investors focused on a decline in aerospace sales and increased research-and-development spending, which could pressure near-term margins despite the overall earnings beat. Elbit Systems Shares Fall as Aerospace Sales Drop and R&D Spending Climbs
• Negative Sentiment: At roughly 63 times earnings, ESLT’s elevated valuation leaves less room for operational disappointments; investors may be taking profits or demanding clearer margin improvement even with the record backlog.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on ESLT. Zacks Research downgraded shares of Elbit Systems from a "strong-buy" rating to a "hold" rating in a report on Wednesday, June 24th. JPMorgan Chase & Co. boosted their price target on shares of Elbit Systems from $930.00 to $950.00 and gave the stock a "neutral" rating in a report on Wednesday, May 27th. Jefferies Financial Group reduced their price objective on Elbit Systems from $950.00 to $880.00 and set a "hold" rating for the company in a report on Wednesday, June 24th. Finally, Morgan Stanley set a $845.00 target price on shares of Elbit Systems in a research report on Wednesday, July 15th. Two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $803.75.

Elbit Systems Stock Down 8.9%

The firm has a market cap of $34.28 billion, a PE ratio of 62.49, a P/E/G ratio of 3.65 and a beta of 0.17. The company has a quick ratio of 0.86, a current ratio of 1.41 and a debt-to-equity ratio of 0.06. The stock has a 50-day simple moving average of $796.99 and a two-hundred day simple moving average of $808.39.

Elbit Systems (NASDAQ:ESLT - Get Free Report) last issued its earnings results on Tuesday, August 11th. The aerospace company reported $4.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.69 by $0.45. Elbit Systems had a return on equity of 16.15% and a net margin of 7.14%.The business had revenue of $2.29 billion during the quarter, compared to analyst estimates of $2.25 billion. Analysts expect that Elbit Systems Ltd. will post 15.3 earnings per share for the current year.

Elbit Systems Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, July 6th. Stockholders of record on Tuesday, June 23rd were paid a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Tuesday, June 23rd. Elbit Systems's payout ratio is 26.96%.

Institutional Investors Weigh In On Elbit Systems

Institutional investors have recently added to or reduced their stakes in the company. Clal Insurance Enterprises Holdings Ltd grew its position in shares of Elbit Systems by 34.4% in the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,550,618 shares of the aerospace company's stock worth $893,941,000 after buying an additional 397,049 shares during the last quarter. Lazard Asset Management LLC purchased a new position in shares of Elbit Systems during the third quarter valued at approximately $172,673,000. Harel Insurance Investments & Financial Services Ltd. raised its stake in Elbit Systems by 206.1% during the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 269,599 shares of the aerospace company's stock valued at $228,914,000 after buying an additional 181,524 shares during the last quarter. Jennison Associates LLC purchased a new position in shares of Elbit Systems in the 1st quarter worth about $128,135,000. Finally, Bank of America Corp DE raised its holdings in Elbit Systems by 125.0% in the third quarter. Bank of America Corp DE now owns 166,434 shares of the aerospace company's stock worth $84,848,000 after buying an additional 92,449 shares during the last quarter. Hedge funds and other institutional investors own 17.88% of the company's stock.

About Elbit Systems

Elbit Systems Ltd. is an Israel-based defense electronics company that designs, develops and supplies a broad range of systems for military, homeland security and commercial aviation customers. The company focuses on integrated, platform-level solutions that combine sensors, communications, command-and-control software and weapons integration to support intelligence, surveillance and reconnaissance (ISR), force protection and mission management.

Its product and service portfolio spans unmanned aircraft systems, electro-optic and signal intelligence systems, electronic warfare and communications equipment, avionics and mission systems for military and commercial aircraft, and land and naval systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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