General Dynamics (NYSE:GD – Get Free Report) updated its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 16.800-16.900 for the period, compared to the consensus estimate of 16.670. The company issued revenue guidance of $55.7 billion-$55.7 billion, compared to the consensus revenue estimate of $55.2 billion.
Wall Street Analyst Weigh In
GD has been the topic of several recent analyst reports. Bank of America increased their target price on General Dynamics from $400.00 to $415.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Morgan Stanley raised their price objective on General Dynamics from $410.00 to $435.00 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. The Goldman Sachs Group cut their price target on General Dynamics from $327.00 to $313.00 and set a “sell” rating for the company in a research note on Monday, May 4th. BNP Paribas Exane reduced their price objective on shares of General Dynamics from $430.00 to $390.00 and set an “outperform” rating on the stock in a research report on Thursday, April 30th. Finally, Wells Fargo & Company started coverage on General Dynamics in a report on Wednesday, April 1st. They set an “overweight” rating and a $400.00 price objective on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $393.32.
General Dynamics Price Performance
General Dynamics (NYSE:GD – Get Free Report) last issued its earnings results on Wednesday, July 29th. The aerospace company reported $4.24 earnings per share for the quarter, topping the consensus estimate of $3.96 by $0.28. General Dynamics had a return on equity of 17.41% and a net margin of 8.07%.The business had revenue of $14.09 billion for the quarter, compared to analysts’ expectations of $13.52 billion. During the same period in the previous year, the firm posted $3.74 EPS. The business’s revenue for the quarter was up 8.1% compared to the same quarter last year. General Dynamics has set its FY 2026 guidance at 16.800-16.900 EPS. Equities analysts expect that General Dynamics will post 16.66 earnings per share for the current fiscal year.
General Dynamics Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Investors of record on Thursday, July 2nd will be paid a dividend of $1.59 per share. The ex-dividend date is Thursday, July 2nd. This represents a $6.36 dividend on an annualized basis and a yield of 1.6%. General Dynamics’s dividend payout ratio is currently 40.03%.
Insider Buying and Selling
In related news, Director Mark Malcolm sold 5,480 shares of General Dynamics stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $365.00, for a total transaction of $2,000,200.00. Following the completion of the transaction, the director directly owned 10,643 shares of the company’s stock, valued at approximately $3,884,695. The trade was a 33.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Mark Lagrand Burns sold 36,480 shares of the business’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $345.29, for a total transaction of $12,596,179.20. Following the completion of the sale, the executive vice president owned 38,975 shares in the company, valued at $13,457,677.75. This represents a 48.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 78,190 shares of company stock valued at $27,041,022. Company insiders own 1.40% of the company’s stock.
General Dynamics News Roundup
Here are the key news stories impacting General Dynamics this week:
- Positive Sentiment: Second-quarter results exceeded expectations. General Dynamics reported $4.24 in diluted EPS versus the approximately $3.96 consensus estimate, while revenue rose 8.1% year over year to $14.1 billion, ahead of expectations near $13.5 billion. Operating earnings increased 11.9%, and operating margin expanded 40 basis points to 10.4%. General Dynamics Reports Second-Quarter 2026 Financial Results
- Positive Sentiment: Growth was broad-based. Revenue increased across all four business segments, led by Aerospace and Marine Systems. The company cited strong defense orders and ended the quarter with a $136.5 billion backlog. Companywide book-to-bill was 1.4-to-1, including 1.5-to-1 in Aerospace, supporting future revenue visibility. General Dynamics posts higher quarterly profit on aerospace and marine strength
- Positive Sentiment: Management raised confidence in its full-year outlook. FY 2026 EPS guidance of $16.80-$16.90 and revenue guidance of $55.7 billion are above consensus expectations of approximately $16.67 EPS and $55.2 billion revenue. Cash from operations reached $1.9 billion, or 162% of net earnings. General Dynamics Reports Second-Quarter 2026 Financial Results
- Neutral Sentiment: General Dynamics also received favorable attention from reports that the Pentagon cleared a path toward its next Virginia-class submarine contract, although the available information does not indicate that a final award has been made. Pentagon clears path for General Dynamics’ next Virginia-class submarine contract
- Negative Sentiment: The broader market backdrop is unfavorable: U.S. stocks, including the Dow Jones Industrial Average, fell sharply during the session while crude oil surged, encouraging risk reduction across equities. Crude Oil Surges 7%; General Dynamics Posts Upbeat Earnings
- Negative Sentiment: Recent insider-trading data show company insiders made no open-market purchases and completed multiple sales over the past six months, a potential sentiment headwind, though these transactions may reflect compensation or diversification rather than a change in business fundamentals.
Institutional Trading of General Dynamics
Several institutional investors have recently made changes to their positions in the stock. Ankerstar Wealth LLC bought a new position in General Dynamics in the fourth quarter valued at about $37,000. JPL Wealth Management LLC bought a new position in General Dynamics in the 3rd quarter valued at about $40,000. Chapman Financial Group LLC acquired a new position in General Dynamics during the 2nd quarter valued at about $43,000. Advocate Investing Services LLC purchased a new stake in shares of General Dynamics in the fourth quarter worth approximately $44,000. Finally, Rakuten Securities Inc. lifted its holdings in shares of General Dynamics by 53.1% in the second quarter. Rakuten Securities Inc. now owns 173 shares of the aerospace company’s stock valued at $50,000 after purchasing an additional 60 shares in the last quarter. 86.14% of the stock is currently owned by institutional investors and hedge funds.
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.
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