Defense contractor Elbit Systems becomes most valuable Israeli firm following forty five percent stock surge

Elbit Systems surpasses Teva and major banks to become Israel's most valuable domestic company in March 2026, driven by a 45 percent stock surge.

By: AXL Media

Published: Mar 6, 2026, 3:04 AM EST

Source: The information in this article was sourced from The Times of Israel

Market Leadership in Tel Aviv

Elbit Systems has officially become the largest Israeli firm by market value listed on the Tel Aviv Stock Exchange. During midday trading on March 5, 2026, the company's shares rose nearly four percent, bringing its total market capitalization to approximately 123 billion shekels. This surge allowed the defense giant to overtake longtime market leaders, including Teva Pharmaceutical Industries and the nation’s primary lenders, Bank Leumi and Bank Hapoalim. While it leads among domestic firms, Elbit remains the second most valuable entity overall on the exchange, trailing only the American cybersecurity firm Palo Alto Networks.

Drivers of Financial Growth

The company's stock has experienced a forty five percent increase since the beginning of the year, fueled by a combination of domestic military sales and expanding international contracts. Security analysts point to the ongoing multifront war involving regional proxies and the conflict in Eastern Europe as primary catalysts for this demand. These geopolitical tensions have led to a record order backlog for the firm, which reached 25.2 billion dollars by late 2025. European nations, in particular, have shown a heightened interest in acquiring Israeli defense technology to address their own regional security concerns.

Diversified Defense Operations

Led by Chief Executive Officer Bezhalel Machlis, Elbit Systems operates across a broad spectrum of defense and homeland security sectors. The firm specializes in aerospace, land and naval command systems, as well as intelligence, surveillance, and reconnaissance technologies. Controlled by billionaire Michael Federmann through Federmann Enterprises, the company maintains listings on both the Tel Aviv and Nasdaq stock exchanges. The recent market performance has significantly increased the value of the Federmann family’s forty two percent stake, which saw an accumulative rise of over five billion shekels in just two days of trading.