Elbit Systems: Strong Q1, But Valuation Still Looks Stretched

Elbit Systems delivered strong Q1 2026 results, with revenue up 15.5% YoY and a record $30.2B backlog, 71% international. Non-GAAP EPS beat by $0.54, margins expanded to 10.1%, and free cash flow remained robust despite increased capex and R&D investment. ESLT trades at a steep premium—51x earnings and 32x EV/EBITDA—reflecting high expectations for sustained growth, margin strength, and backlog conversion.