Is ESLT a Buy? What to Consider in 2026
Short answer
The bull case for Elbit Systems Ltd (ESLT) rests on Record backlog and revenue visibility: Elbit's order backlog surpassed $30 billion for the first time in Q1 2026, up from $28.1 billion at the end of 2025 and $22.6 billion a year earlier. Revenue (FY2025) is ~$7.9B. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: The most cited risk is valuation: ESLT trades at a trailing price-to-earnings ratio around the low-to-mid 60s, far above the industrials-sector average, so disappointing execution could compress the multiple sharply. Whether ESLT is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
Elbit Systems Ltd (Nasdaq and Tel Aviv: ESLT) is an Israel-based defense technology company that develops, manufactures, integrates and sustains military systems across land, sea, air, cyber and space domains. Its portfolio spans C4ISR (command, control and intelligence systems), electro-optics and thermal imaging, unmanned aerial and ground systems, precision munitions and artillery rockets (including its PULS launcher), helmet-mounted displays for pilots, and electronic warfare. The company employs more than 20,000 people across five continents and generates a large share of sales from export customers, with roughly 72% of its order backlog attributable to orders from outside Israel as of the end of 2025. The investment picture centers on a multi-year surge in global defense spending, especially in Europe, that has driven Elbit's order backlog to record levels. Revenue reached nearly $8 billion in 2025, up double digits year over year, and the backlog crossed $30 billion for the first time in early 2026, giving multi-year revenue visibility. The counterweight is valuation: after a large stock run, ESLT trades at a premium price-to-earnings multiple well above the broader industrials sector, meaning much of the growth is already priced in. Investors also weigh Israel-specific reputational and export risks alongside the durability of the current arms-buying cycle.
What's the case for buying ESLT?
1. Record backlog and revenue visibility
Elbit's order backlog surpassed $30 billion for the first time in Q1 2026, up from $28.1 billion at the end of 2025 and $22.6 billion a year earlier. That backlog represents several years of revenue and provides unusual visibility for an industrial company. It reflects a wave of new contracts, including large European and Israeli defense awards booked through early 2026.
2. European rearmament tailwind
European governments have sharply increased defense budgets, and Elbit has won sizable orders there, including a roughly $1.4 billion European modernization contract and a $750 million PULS artillery deal with Greece. With about 72% of backlog coming from outside Israel, the company is positioned as a supplier to the broader NATO-aligned rearmament cycle rather than a purely domestic contractor.
3. Margin and cash-flow improvement
Non-GAAP operating margins moved past the 10% mark in Q1 2026, and full-year 2025 free cash flow rose about 73% to roughly $553 million. Rising volume, operating leverage and disciplined execution have improved profitability. Stronger cash generation supports the dividend and reinvestment in capacity to fulfill the growing backlog.
4. Diversified defense product breadth
Elbit spans C4ISR, electro-optics, unmanned systems, precision munitions, airborne systems and land platforms, which reduces reliance on any single program. This breadth lets it participate across the land, sea and air modernization budgets of many governments. Its US subsidiary, Elbit Systems of America, also gives it access to the world's largest defense market.
What are the risks to ESLT?
The most cited risk is valuation: ESLT trades at a trailing price-to-earnings ratio around the low-to-mid 60s, far above the industrials-sector average, so disappointing execution could compress the multiple sharply. Israel-specific geopolitical and reputational exposure is real, as some European governments have at times restricted or scrutinized arms purchases from Israeli suppliers, and ESG-driven divestment pressure has surfaced. The company also carries currency exposure to the Israeli shekel and depends on sustained elevated global defense spending, which could soften if conflicts de-escalate or budgets are reprioritized. Program delays, supply-chain constraints and heavy reliance on government customers add execution and concentration risk.
How is ESLT valued? (as of JULY 2026)
Snapshot for ESLT as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Revenue (FY2025): ~$7.9B
- Revenue growth (YoY): ~16%
- GAAP EPS (FY2025): ~$11.39
- Order backlog (Q1 2026): ~$30.2B
- Market cap: ~$34-38B
- P/E (trailing): ~63x
- Dividend yield: ~0.4%
As of July 2026, ESLT traded around $800 per share with a market cap in the mid-$30 billion range, valuing the company at roughly 63 times trailing earnings, well above the industrials-sector average near 30. The premium reflects a record backlog, double-digit revenue growth and strong free cash flow. The small dividend (about $2.70 per share annually) signals a growth-and-reinvestment profile rather than an income story.
How do you decide if ESLT is a buy?
Rather than asking whether ESLT is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold ESLT indirectly through an index or sector ETF before adding more.
For the full picture, see the ESLT stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about ESLT against your real portfolio and see your actual exposure before deciding.
The bottom line on ESLT
The bottom line: Elbit Systems Ltd's story right now is Record backlog and revenue visibility, with revenue (fy2025) at ~$7.9B. If you believe that narrative continues, the call is about sizing ESLT sensibly and checking overlap with what you own; if you doubt it (the risk: the most cited risk is valuation: ESLT trades at a trailing price-to-earnings ratio around the low-to-mid 60s, far above the industrials-sector average, so disappointing execution could compress the multiple sharply.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
Build a basket around ESLT with Walnut
Use Elbit Systems Ltd as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is ESLT a good stock to buy right now?
+
The case for Elbit Systems Ltd right now is Record backlog and revenue visibility, with revenue (fy2025) at ~$7.9B. If you believe that thesis holds, ESLT is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is the most cited risk is valuation: ESLT trades at a trailing price-to-earnings ratio around the low-to-mid 60s, far above the industrials-sector average, so disappointing execution could compress the multiple sharply. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does Elbit Systems Ltd do?
+
Elbit Systems Ltd (Nasdaq and Tel Aviv: ESLT) is an Israel-based defense technology company that develops, manufactures, integrates and sustains military systems across land, sea,
What are the main risks of ESLT?
+
The most cited risk is valuation: ESLT trades at a trailing price-to-earnings ratio around the low-to-mid 60s, far above the industrials-sector average, so disappointing execution could compress the multiple sharply. Israel-specific geopolitical and reputational exposure is real, as some European governments have at times restricted or scrutinized arms purchases from Israeli suppliers, and ESG-driven divestment pressure has surfaced. The company also carries currency exposure to the Israeli shekel and depends on sustained elevated global defense spending, which could soften if conflicts de-escalate or budgets are reprioritized. Program delays, supply-chain constraints and heavy reliance on government customers add execution and concentration risk.
What does Elbit Systems do?
+
Elbit is an Israeli defense-technology company that builds military electronics and systems, including C4ISR, electro-optics and thermal imaging, unmanned aircraft and ground vehicles, precision munitions, artillery rockets, helmet-mounted displays and electronic warfare gear, for customers around the world.
Is ESLT a US or foreign stock?
+
Elbit is headquartered in Haifa, Israel, and its shares trade on both the Nasdaq (ticker ESLT) and the Tel Aviv Stock Exchange. US investors can buy the Nasdaq-listed shares directly through a standard brokerage account.
How big is Elbit Systems?
+
Elbit reported nearly $7.9 billion in revenue for 2025 and employs more than 20,000 people across five continents. As of July 2026 its market capitalization was in the mid-$30 billion range, making it one of the larger pure-play defense companies outside the US primes.
Why has ESLT stock risen so much?
+
The stock has climbed alongside a global surge in defense spending, particularly European rearmament, which has driven Elbit's order backlog to a record above $30 billion and pushed revenue and free cash flow higher. Its shares roughly doubled over the trailing year into mid-2026.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell ESLT; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.