General Dynamics (NYSE:GD) Announces Earnings Results

Posted by Brian Himes on Oct 31st, 2026

General Dynamics (NYSE:GD – Get Free Report) announced its earnings results on Friday. The aerospace company reported $4.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.12 by $0.37, Zacks reports. General Dynamics had a return on equity of 17.43% and a net margin of 8.18%. The firm had revenue of $14.57 billion for the quarter, compared to analyst estimates of $13.72 billion. During the same quarter last year, the firm posted $3.88 EPS. The business’s revenue was up 12.9% on a year-over-year basis.

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 Stock Performance

Shares of General Dynamics stock opened at $372.72 on Friday. The firm has a market cap of $100.84 billion, a PE ratio of 22.74, a price-to-earnings-growth ratio of 2.17 and a beta of 0.33. The company has a quick ratio of 0.96, a current ratio of 1.44 and a debt-to-equity ratio of 0.23. General Dynamics has a 52 week low of $306.77 and a 52 week high of $400.00. The business’s fifty day simple moving average is $351.44 and its 200-day simple moving average is $355.06.

General Dynamics Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 9th will be paid a $1.59 dividend. This represents a $6.36 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, October 9th. General Dynamics’s dividend payout ratio is 38.80%.

Insider Transactions at General Dynamics

In other General Dynamics news, Director Robert K. Steel sold 7,440 shares of the stock in a transaction dated Wednesday, September 23rd. The shares were sold at an average price of $346.05, for a total transaction of $2,574,612.00. Following the completion of the transaction, the director 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 sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Phebe N. Novakovic sold 51,568 shares of General Dynamics stock in a transaction dated 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 of the company’s stock, valued at approximately $293,231,119.06. This represents a 6.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.40% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

GD has been the topic of several research reports. Wells Fargo & Company raised their target price on General Dynamics from $400.00 to $440.00 and gave the company an “overweight” rating in a research report on Tuesday, August 4th. BNP Paribas Exane raised their target price on General Dynamics from $390.00 to $430.00 and gave the stock an “outperform” rating in a research note on Thursday, July 30th. Sanford C. Bernstein reduced 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. Bank of America boosted their price target on shares of General Dynamics from $400.00 to $415.00 and gave the company a “buy” rating in a research report on Monday, July 6th. Finally, TD Cowen dropped their price objective on shares of General Dynamics from $420.00 to $380.00 and set a “buy” rating for the company in a report on Friday, October 9th. Eleven investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $402.44.

Get Our Latest Stock Analysis on General Dynamics

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.

About General Dynamics

(Get Free Report)

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.

Earnings History for General Dynamics (NYSE:GD)

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