General Dynamics (NYSE:GD) Announces Earnings Results

General Dynamics (NYSE:GD) issued its quarterly earnings results on Friday. The aerospace company reported $4.49 earnings per share for the quarter, beating analysts’ consensus estimates of $4.12 by $0.37, Zacks reports. The company had revenue of $14.57 billion during the quarter, compared to the consensus estimate of $13.72 billion. General Dynamics had a net margin of 8.18% and a return on equity of 17.43%. General Dynamics’s revenue was up 12.9% on a year-over-year basis. During the same period in the prior year, the company earned $3.88 EPS.

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

• General Dynamics raised its 2026 EPS guidance to $17.20–$17.30, up nearly 7% from its initial outlook, supported by expected revenue of $56.5–$56.8 billion and an operating margin around 10.5%.
• The company booked nearly $99 billion in new orders, driving record backlog to $220 billion—double the year-ago level—with major awards for additional Columbia- and Virginia-class submarines.
• Third-quarter revenue rose 12.9% year over year to $14.57 billion, while operating earnings increased 14.7% and diluted EPS grew 15.7% to $4.49; Aerospace and Marine Systems led profit growth.
• Cash generation remained strong, with $1.7 billion of quarterly operating cash flow and $1.2 billion of free cash flow; management expects approximately 105% free-cash-flow conversion for 2026 despite increased shipyard investment.
• Phebe Novakovic will step down as CEO after 14 years and remain Executive Chair, with President Danny Deep succeeding her; management said it expects continued investment in Gulfstream, shipyard capacity, munitions, and differentiated defense technologies.

General Dynamics Price Performance

NYSE GD opened at $372.72 on Friday. The stock’s 50-day moving average price is $351.44 and its two-hundred day moving average price is $355.06. The company has a current ratio of 1.44, a quick ratio of 0.96 and a debt-to-equity ratio of 0.23. The company has a market cap of $100.84 billion, a PE ratio of 21.92, a PEG ratio of 2.18 and a beta of 0.33. General Dynamics has a 1 year low of $306.77 and a 1 year high of $400.00.

General Dynamics Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 9th will be issued a dividend of $1.59 per share. This represents a $6.36 annualized dividend and a yield of 1.7%. The ex-dividend date is Friday, October 9th. General Dynamics’s payout ratio is presently 38.80%.

Wall Street Analyst Weigh In

A number of analysts recently commented on GD shares. Royal Bank Of Canada dropped their target price on shares of General Dynamics from $410.00 to $360.00 and set a “sector perform” rating on the stock in a report on Thursday, October 15th. Susquehanna raised their target price on shares of General Dynamics from $420.00 to $455.00 and gave the stock a “positive” rating in a report on Thursday, July 30th. Bank of America lifted their price target on shares of General Dynamics from $400.00 to $415.00 and gave the stock a “buy” rating in a research report on Monday, July 6th. Sanford C. Bernstein dropped their price target on General Dynamics from $407.00 to $365.00 and set a “market perform” rating on the stock in a report on Wednesday, October 14th. Finally, Wells Fargo & Company increased their price objective on General Dynamics from $400.00 to $440.00 and gave the company an “overweight” rating in a research report on Tuesday, August 4th. Eleven research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, General Dynamics has an average rating of “Moderate Buy” and an average price target of $402.44.

Insider Transactions at General Dynamics

In other news, Director Robert K. Steel sold 7,440 shares of General Dynamics stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $346.05, for a total value of $2,574,612.00. Following the transaction, the director directly owned 3,096 shares of the company’s stock, valued at $1,071,370.80. This trade represents a 70.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Phebe N. Novakovic sold 51,568 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $382.58, for a total transaction of $19,728,885.44. Following the sale, the chief executive officer owned 766,457 shares in the company, valued at $293,231,119.06. This represents a 6.30% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.40% of the stock is currently owned by corporate insiders.

Key Stories Impacting General Dynamics

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

• Positive Sentiment: Q3 results exceeded expectations. General Dynamics reported diluted EPS of $4.49, up 15.7% year over year and ahead of the roughly $4.12–$4.14 analyst consensus. Revenue rose 12.9% to $14.57 billion, exceeding estimates near $13.72 billion. General Dynamics Reports Third-Quarter 2026 Financial Results
• Positive Sentiment: Growth was broad-based. Performance improved across all four operating segments, with Gulfstream business-jet demand and marine bookings helping drive the beat. Operating earnings increased 14.7% to $1.5 billion, while operating margin expanded to 10.5%. General Dynamics tops quarterly results as Gulfstream, marine drive bookings
• Positive Sentiment: Backlog reached a record level. Quarterly orders totaled approximately $98.8 billion, including $93.8 billion in defense orders, producing a 6.8-to-1 book-to-bill ratio. Ending backlog was about $220.3 billion, supporting future revenue visibility and reinforcing the company’s exposure to sustained defense spending. General Dynamics Q3 Revenue Rises 12.9% to $14.6 Billion
• Positive Sentiment: Cash generation and outlook were supportive. General Dynamics generated $1.7 billion in operating cash flow, equal to 139% of net earnings, and management raised its guidance, providing an additional catalyst for investors. General Dynamics CEO Signs Off After 14 Years With Record $220 Billion Backlog
• Neutral Sentiment: Chief Executive Officer Phebe Novakovic is signing off after 14 years, with the transition occurring as the company reports record backlog. The strong operating results reduce immediate concern, but investors may watch for continuity under new leadership. General Dynamics Q3 2026 Earnings Call Transcript
• Negative Sentiment: Recent insider-trading data shows multiple executives, including the CEO, selling shares and no reported insider purchases over the past six months. This is a secondary concern compared with the earnings beat but could limit some investor enthusiasm.

General Dynamics Company Profile

General Dynamics Corporation (NYSE: GD) is a global aerospace and defense company that develops, manufactures and supports products and services for government and commercial customers. Its operations serve the U.S. government, allied nations and other customers worldwide, with a significant focus on national security, military modernization and mission support.

The company operates through four primary business areas. Aerospace provides Gulfstream business jets and related aircraft services through Gulfstream Aerospace, as well as aircraft management, charter, maintenance and completions services through Jet Aviation.