Matrix IT (MTRX) Q2 2026 earnings summary

Executive summary

• Completed merger with Magic, driving value through margin improvement, new products, and operational/geographic synergies.

• Achieved strong organic growth in revenues, profits, and margins, with double-digit increases on a constant currency basis despite USD depreciation and fewer working days due to war and holidays.

• Implemented Israel's largest civilian AI project, with AI positively impacting most segments.

• Maintained #1 ranking in value-added IT services in Israel for 21 consecutive years, with global activity contributing over 20% of profit.

• Continued investment in security and pursuit of high-quality acquisitions, especially globally.

Financial highlights

• Q2 2026 revenues grew 6.3% year-over-year (15.3% on a constant currency basis) to NIS 2,119M.

• Operating income rose 10.6% (20.6% CC) to NIS 202M; net income up 13.4% (32.4% CC) to NIS 135M.

• Net income attributable to shareholders increased 36% to NIS 123M.

• H1 2026 revenues up 4.3% (12.3% CC) to NIS 4,247M; operating income up 10.8% (19.2% CC) to NIS 405M.

• EBITDA for Q2 2026 was NIS 266M (5.4% growth); gross margin at 18.3%.

Outlook and guidance

• Positioned for accelerated growth post-Magic merger, with enhanced U.S. presence and cross-selling synergies.

• AI and cloud activities expected to remain key growth drivers.

• Continued focus on high-quality acquisitions and expansion in defense and international markets.