Despite the dollar's impact: Israeli tech giant shows a dramatic leap
An exceptionally strong financial report reveals how the company managed to beat preliminary forecasts, record a net profit of millions, and earn a warm recommendation from a Bank Hapoalim analyst.
The information technology company Matrix presented a strong financial report for the second quarter of 2026, beating preliminary profit forecasts. According to an analysis by Shai Ziegelman, an equity analyst in the research unit of Bank Hapoalim, the company showed prominent positive performance, despite a negative headwind from the exchange rate, a 17.6% decrease in the average dollar rate, and a slight 1.7% decrease in the number of working hours compared to the corresponding quarter.
Following the results, Bank Hapoalim maintains its stock picking recommendation for the share at outperform with a medium risk level.
The group grew by 6.3% and amounted to 2.12 billion shekels. Ziegelman notes that when neutralizing the effect of the dollar exchange rate, revenue growth would have reached 15.3%, and organic growth would have stood at 14.7%, compared to the 5.7% reported.
Operating profit was higher than forecasts and rose by 10.6% to 202.2 million shekels. The operating profit margin improved from 9.2% to 9.5%, thanks to operational efficiency and growth in activity in Israel, which offset the erosion in the gross profit margin of 18.3%.
Net profit attributable to shareholders jumped by 36% to 122.6 million shekels; these increases were influenced, among other things, by the acquisition of minority rights in the company Magic, and the diluted earnings per share rose by 12.8% to 1.32 shekels.
Shai Ziegelman (Photo: Aviv Gottlieb)
The company recorded an 8.7% growth in revenue and a 13.5% increase in operating profit, to a rate of 9.7%. The growth was mainly due to increasing demand in the fields of AI, data, security, and core systems.
The cloud and infrastructure sector showed a 16.8% leap in revenue and a 21.4% increase in operating profit. When neutralizing currency effects, the sector recorded an impressive growth of 35.5% in revenue and 40.8% in operating profit.
Activity abroad continued to show the highest operating profitability rate in the group, 12.2%. Although the reported data were nominally affected by the dollar rate, when neutralizing the currency, a growth of 13% in revenue and 17.4% in operating profit was recorded, thanks to expert services in the USA, risk management, and regulation for financial institutions.
Bank Hapoalim concludes that Matrix's results moved in a positive direction and were even better than expected in the profit line, while the strengthening of the shekel obscured a significant part of the company's real expansion of activity.
