Matrix Shares Surge 9% After Strong Q2 Earnings and Merger Completion

Matrix, Israel's largest IT company, reported significant financial growth for the second quarter of 2026, marking the first full quarter following its merger with Magic completed in February. The company's revenue rose 6.3% year-over-year to approximately 2.119 billion shekels, while net profit surged 36% to about 136 million shekels despite a weakening dollar exchange rate.

The merger resulted in former Magic shareholders owning around 31% of the combined entity, with original Matrix shareholders holding 69%. This report reflects the consolidated performance of both companies under one roof. Following the positive earnings announcement, Matrix's stock jumped roughly 9%.

In addition to the strong results, Matrix declared an exceptional dividend payout of 96 million shekels, representing about 70% of the quarterly net profit, significantly higher than its usual dividend policy. However, despite the recent stock increase, Matrix shares have declined over 30% since the start of the year, mainly due to heavy selling pressure and dilution from the merger, which increased the number of shares by approximately 46%. The company's market capitalization has fallen from over 11 billion shekels at the time of the merger to around 8.3 billion shekels currently.