General Dynamics (NYSE:GD) Issues Quarterly Earnings Results, Beats Estimates By $0.28 EPS

General Dynamics (NYSE:GD) released its earnings results on Wednesday. The aerospace company reported $4.24 earnings per share for the quarter, beating analysts’ consensus estimates of $3.96 by $0.28, Zacks reports. General Dynamics had a net margin of 8.18% and a return on equity of 17.43%. The business had revenue of $14.09 billion during the quarter, compared to the consensus estimate of $13.52 billion. During the same quarter last year, the firm earned $3.74 earnings per share. The firm’s revenue for the quarter was up 8.1% compared to the same quarter last year. General Dynamics updated its FY 2026 guidance to 16.800-16.900 EPS.

Here are the key takeaways from General Dynamics’ conference call:

• Strong second-quarter results: Revenue rose 8.1% year over year to $14.1 billion, while operating earnings increased nearly 12% and diluted EPS rose 13.4% to $4.24. The company also exceeded consensus EPS expectations by $0.28.
• Backlog and orders reached records: Nearly $20 billion of quarterly orders produced a 1.4 book-to-bill ratio, with all four operating segments above 1.0. Backlog grew 32% year over year to a record $136.5 billion, supported by strong aerospace demand and combat-systems awards.
• Full-year outlook increased: General Dynamics raised its 2026 adjusted EPS forecast to $16.80–$16.90 from $16.45–$16.55 and expects approximately $55.7 billion of revenue with a 10.5% operating margin.
• Marine Systems continues to improve: Revenue increased 10.4% and operating earnings rose 17.5%, aided by productivity gains, better material deliveries and progress toward higher submarine and ship build rates. Management expects continued growth, although it cautioned that the pace may moderate from the first half.
• Second-half cash flow will be lighter: Despite generating more than $4 billion of operating cash flow in the first half, the company expects higher capital expenditures, approximately $500 million of pension contributions, more than $500 million in cash taxes and the use of European Land Systems advance payments to weigh on the remainder of the year.

General Dynamics Trading Down 0.6%

Shares of NYSE:GD traded down $2.42 on Friday, hitting $379.78. The company had a trading volume of 237,283 shares, compared to its average volume of 1,353,070. General Dynamics has a 1 year low of $306.03 and a 1 year high of $400.00. The company has a quick ratio of 0.90, a current ratio of 1.44 and a debt-to-equity ratio of 0.23. The firm has a market capitalization of $102.70 billion, a price-to-earnings ratio of 23.14, a P/E/G ratio of 2.29 and a beta of 0.34. The firm’s 50-day simple moving average is $359.92 and its two-hundred day simple moving average is $352.70.

General Dynamics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Thursday, July 2nd will be paid a $1.59 dividend. This represents a $6.36 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Thursday, July 2nd. General Dynamics’s dividend payout ratio is currently 38.80%.

Insiders Place Their Bets

In related news, EVP Mark Lagrand Burns sold 36,480 shares of the firm’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $345.29, for a total value of $12,596,179.20. Following the completion of the transaction, the executive vice president owned 38,975 shares in the company, valued at $13,457,677.75. This trade represents a 48.35% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Mark Malcolm sold 5,480 shares of General Dynamics stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $365.00, for a total transaction of $2,000,200.00. Following the completion of the sale, the director owned 10,643 shares in the company, valued at approximately $3,884,695. This trade represents a 33.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 78,190 shares of company stock valued at $27,041,022. 1.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Binnacle Investments Inc increased its holdings in General Dynamics by 4.0% in the 3rd quarter. Binnacle Investments Inc now owns 878 shares of the aerospace company’s stock valued at $299,000 after purchasing an additional 34 shares in the last quarter. Kirtland Hills Capital Management LLC lifted its holdings in General Dynamics by 0.7% in the fourth quarter. Kirtland Hills Capital Management LLC now owns 4,828 shares of the aerospace company’s stock worth $1,625,000 after acquiring an additional 35 shares during the last quarter. Venture Visionary Partners LLC raised its position in shares of General Dynamics by 2.1% during the 4th quarter. Venture Visionary Partners LLC now owns 1,929 shares of the aerospace company’s stock worth $650,000 after purchasing an additional 39 shares during the period. Summit Financial LLC grew its stake in General Dynamics by 0.7% during the 4th quarter. Summit Financial LLC now owns 6,188 shares of the aerospace company’s stock worth $2,083,000 after buying an additional 43 shares during the last quarter. Finally, Abel Hall LLC boosted its holdings in shares of General Dynamics by 6.1% during the fourth quarter. Abel Hall LLC now owns 821 shares of the aerospace company’s stock valued at $276,000 after acquiring an additional 47 shares during the period. Hedge funds and other institutional investors own 86.14% of the company’s stock.

Trending Headlines about General Dynamics

Here are the key news stories impacting General Dynamics this week:

• Positive Sentiment: Strong Q2 results and raised guidance: General Dynamics reported adjusted EPS of $4.24, beating the $3.96 consensus, while revenue rose 8.1% year over year to $14.09 billion, above estimates. Growth was broad-based across all four segments, led by Aerospace and Marine Systems. Management projected fiscal 2026 EPS of $16.80–$16.90 and revenue of approximately $55.7 billion, both ahead of consensus. General Dynamics Corporation Q2 2026 Earnings Call Summary
• Positive Sentiment: Record backlog and cash generation: Orders exceeded quarterly sales, supporting future revenue visibility, while the backlog reached approximately $136.5 billion. The earnings call highlighted strong cash generation, although supply-chain constraints and margin pressure remain considerations. General Dynamics Corp Q2 2026 Earnings Call Highlights
• Positive Sentiment: Largest-ever submarine award: General Dynamics Electric Boat received $29.5 billion for five Columbia-class submarines and $42.1 billion for nine Virginia-class submarines, plus infrastructure support, as part of a $76.6 billion Navy award shared with HII. The contracts should strengthen long-term revenue and capacity utilization. General Dynamics Electric Boat Submarine Award
• Positive Sentiment: Analyst target increases: Morgan Stanley raised its target to $465 with an overweight rating, Susquehanna lifted its target to $455 with a positive rating, and BNP Paribas Exane increased its target to $430 while maintaining an outperform rating.
• Neutral Sentiment: Positive fundamentals versus spending uncertainty: William Blair maintained a Hold rating, citing strong execution and fundamentals but limited visibility into future U.S. defense spending.
• Negative Sentiment: Valuation concerns: With GD trading near its yearly high at a P/E of roughly 23, some analysts argue that substantial optimism is already reflected in the stock and have issued downgrades despite strong contract tailwinds. General Dynamics Has Run Its Course

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Wall Street Zen raised General Dynamics from a “buy” rating to a “strong-buy” rating in a research report on Saturday, June 13th. Citigroup upped their price objective on General Dynamics from $364.00 to $404.00 and gave the stock a “neutral” rating in a research note on Thursday. Robert W. Baird set a $430.00 target price on shares of General Dynamics in a report on Thursday. BNP Paribas Exane lifted their price objective on shares of General Dynamics from $390.00 to $430.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, Morgan Stanley upped their target price on shares of General Dynamics from $435.00 to $465.00 and gave the company an “overweight” rating in a report on Thursday. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $406.32.

About General Dynamics

General Dynamics is a major American aerospace and defense contractor that designs, manufactures and supports a broad range of products and services for government and commercial customers worldwide. Headquartered in the United States (Reston, Virginia), the company supplies platforms and systems used by armed forces, civil authorities and private operators across multiple domains including air, land, sea and cyber.

Its principal activities span several operating businesses: a business aviation unit that develops and supports Gulfstream business jets; land systems that produce armored combat vehicles and related logistics and sustainment services; marine systems that design and construct submarines and surface ships for navies; and mission systems and information technology operations that provide command-and-control, communications, cybersecurity and systems-integration services.