Jefferies: Israel Defense Budget Increased to $62.9B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 29 2026
0mins
Jefferies highlights a Calcalist report that Israel's Ministry of Finance removed its objection to an incremental $14.7B defense budget injection. This would lift Israel's 2026 defense budget to $62.9B from $48.2B, the analyst tells investors in a research note. If confirmed, Jefferies sees the budget increase as a positive for Elbit Systems (ESLT) and Next Vision (NXSNF). The proposed increase would be a "material step-up" for Israel's defense outlays and should support continued procurement of munitions, interceptors, sensors, C4ISR, unmanned aerial vehicles, electro-optics, and survivability systems, the firm contends.
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Analyst Views on ESLT
Wall Street analysts forecast ESLT stock price to fall
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 811.010
Low
531.00
Averages
553.67
High
580.00
Current: 811.010
Low
531.00
Averages
553.67
High
580.00
About ESLT
Elbit Systems Ltd. is an international technology company engaged in a range of programs across the world. The Company develops and supplies a portfolio of airborne, land, and naval systems and products for defense, homeland security, and commercial aviation applications. Its systems and products are installed on new platforms, and it also performs platform modernization programs. In addition, it provides a range of support services. The Company's activities include military aircraft and helicopter systems; helmet-mounted systems; commercial aviation systems and aerostructures; unmanned aircraft and unmanned surface vessels; land vehicle systems; command, control, communications, computer, and intelligence (C4I) systems; intelligence and cyber systems; electro-optic and countermeasure systems; electronic warfare and signal intelligence systems; and various commercial activities. It operates primarily in the defense and homeland security arenas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Kratos Defense Growth: Kratos Defense & Security Solutions experienced a stock price rise of approximately 4.3%, showcasing its competitiveness and market recognition in the defense sector, which may attract more investor interest.
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See More
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- Market Sentiment: Retail investor sentiment towards Elbit Systems has shifted from 'bullish' to 'extremely bullish', with the stock gaining over 40% year-to-date, reflecting strong market confidence in the company's future performance.
See More
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- Defined Execution Timeline: Under the contract, Elbit Systems will complete all upgrades over a four-year period, providing a stable revenue stream for the company and enhancing its long-term competitiveness in the defense sector.
- Strong Stock Performance: Elbit Systems' shares have risen by 43.4% year-to-date, reflecting strong market confidence in defense demand and indicating the company's resilience and potential in navigating industry challenges.
See More
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- System Modernization: The program will integrate advanced fire control systems, electric gun and turret drive systems, and communication solutions, enhancing the tanks' combat readiness and ensuring customers maintain battlefield superiority.
- Technological Innovation: The upgrades include lightweight, high-performance electro-optical sights with AI capabilities for day and night observation and target detection, further enhancing the combat effectiveness and survivability of the tanks.
- Long-term Support Assurance: The contract also covers the supply of spare parts and maintenance technical support to ensure long-term operational availability, demonstrating Elbit's leadership in the global defense market and commitment to customer needs.
See More
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- System Modernization: The program will integrate advanced fire control systems, electric turret drive systems, and communication solutions aimed at extending the tanks' service life and enhancing combat readiness, thereby improving the operational capabilities of its customers.
- Technological Innovation: The upgrades include lightweight, high-performance electro-optical sights with AI capabilities for day and night observation, as well as advanced target detection and tracking, which significantly enhance the combat efficiency and survivability of the tanks, ensuring a decisive advantage on the battlefield.
- Long-term Support Assurance: The contract also covers the supply of spare parts and maintenance technical support to ensure long-term operational availability, reflecting Elbit Systems' commitment to customer needs and its capability to deliver comprehensive solutions in the defense sector.
See More
