Elbit Systems becomes Israel’s most valuable company

Israel’s defence technology company Elbit Systems has become the most valuable Israeli-founded company on the Tel Aviv Stock Exchange (TASE), overtaking pharmaceutical giant Teva and the country’s largest banks after a dramatic rally in its share price.

The company’s market capitalisation has climbed to roughly $40 billion, following a near 5 percent jump earlier this week and a 45 percent rise since the start of the year.

Elbit is also now the most valuable Israeli company traded on Wall Street and the second-largest company listed on the TASE, behind US cybersecurity giant Palo Alto Networks, which recently began trading in Israel.

The Haifa-based defence electronics group develops drones, surveillance platforms and advanced battlefield systems used by militaries around the world. Its shares have risen about 300 percent over the past two years, propelling the company ahead of long-time Israeli market heavyweights including Teva Pharmaceutical Industries, Bank Leumi and Bank Hapoalim.

Elbit’s rise reflects a broader shift in Israel’s corporate landscape, as defence and security technology companies gain prominence amid rising geopolitical tensions and increased military spending worldwide.

Demand for the company’s systems has grown significantly since the outbreak of major conflicts in Europe and the Middle East, with governments accelerating defence budgets and seeking battlefield-tested technologies. Elbit has also benefited from increased procurement by Israel’s military following the Hamas attacks of October 7, alongside expanding orders from Europe and Asia.

Analysts expect the company’s revenue to approach $8 billion annually, supported by a large order backlog and continued international demand for advanced defence systems.

Despite the sharp rally, some analysts remain cautious. Several brokers maintain neutral ratings, suggesting the rapid rise in Elbit’s share price may already reflect much of the company’s expected growth.

The company’s ascent marks a symbolic moment for Israel’s corporate hierarchy. For decades, the country’s largest listed firms were dominated by banks, pharmaceutical groups and traditional industries.

Today, defence technology, alongside cybersecurity and artificial intelligence, is increasingly shaping Israel’s market leaders, highlighting the growing global influence of the country’s security and innovation sectors.