06:37 AM EDT, 03/17/2026 (MT Newswires) -- Elbit Systems' ( ESLT ) fourth-quarter results rose year over year, while the Israeli defense electronics company said demand for its products has increased amid ongoing conflicts in the Middle East.

The company on Tuesday reported adjusted earnings of $3.56 a share for the December quarter, up from $2.66 the year before. Four analysts surveyed by FactSet expected non-GAAP EPS of $3.14. Revenue improved 11% to $2.15 billion, compared with $2.1 billion expected by three analysts polled by FactSet.

Shares of the firm listed on Nasdaq were up 5.8% in the most recent premarket activity.

"We continued to invest heavily in disruptive (research and development) programs, including (artificial intelligence) enhancements across multiple platforms for a total sum of over $500 million," Chief Executive Bezhalel Machlis said in a statement. "We are making significant strategic (capital expenditure) investments to address growing global capacity constraints."

Elbit ( ESLT ) said it has seen a continued material increase in demand for its products and solutions from the Israel Ministry of Defense amid ongoing conflicts in the Middle East. The US and Israel launched joint airstrikes on Tehran last month, while Israel and Hezbollah in Lebanon have engaged in attacks on each other since early March.

The company expects high demand for its products to persist and potentially generate additional orders. However, the firm highlighted business disruptions due to supply chain and operational constraints, including elevated transportation costs, component shortages and higher prices.

"In light of the recent escalation of conflicts involving Iran and Hezbollah, such effects on the company's performance could increase again," according to Elbit ( ESLT ).

For the fourth quarter, revenue in the command, control, communications, computers and intelligence and cyber business gained 19% year over year to $240.8 million, primarily due to sales of radio systems and command and control systems in Europe and Israel. Aerospace revenue declined to $548.2 million from $641 million in the prior-year quarter.

The land segment jumped 22% to $581.1 million, buoyed by ammunition and munition sales growth in Israel and Europe. Intelligence, surveillance, target acquisition and reconnaissance and electronic warfare revenue climbed 39% to $456.6 million, while the Elbit Systems ( ESLT ) of America division inclined 9% to $473.1 million.

Elbit's ( ESLT ) backlog totaled $28.1 billion at the end of December. Roughly 72% of the current backlog consists of orders outside of Israel.