General Dynamics (NYSE:GD – Get Free Report) issued its quarterly earnings results on Wednesday. The aerospace company reported $4.24 earnings per share for the quarter, topping the consensus estimate of $3.96 by $0.28, Zacks reports. 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 during the quarter, compared to the consensus estimate of $13.52 billion. During the same quarter last year, the company earned $3.74 earnings per share. The company’s quarterly revenue was up 8.1% on a year-over-year basis. 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 Stock Performance
GD traded down $5.30 during trading on Thursday, reaching $375.66. 238,454 shares of the company’s stock were exchanged, compared to its average volume of 1,353,763. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.38 and a quick ratio of 0.90. General Dynamics has a 1 year low of $306.03 and a 1 year high of $400.00. The company’s fifty day simple moving average is $359.03 and its 200-day simple moving average is $352.49. The stock has a market capitalization of $101.59 billion, a P/E ratio of 23.64, a price-to-earnings-growth ratio of 2.37 and a beta of 0.34.
General Dynamics Dividend Announcement
Insider Buying and Selling at General Dynamics
In related news, Director Mark Malcolm sold 5,480 shares of the business’s stock in a transaction on 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 transaction, the director directly owned 10,643 shares in the company, valued at $3,884,695. The trade was a 33.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Mark Lagrand Burns sold 36,480 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were 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 directly owned 38,975 shares in the company, valued at approximately $13,457,677.75. The trade was a 48.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 78,190 shares of company stock worth $27,041,022 over the last ninety days. Insiders own 1.40% of the company’s stock.
Hedge Funds Weigh In On General Dynamics
Institutional investors and hedge funds have recently modified their holdings of the stock. Ankerstar Wealth LLC purchased a new position in General Dynamics during the fourth quarter valued at approximately $37,000. JPL Wealth Management LLC acquired a new stake in shares of General Dynamics during the 3rd quarter worth approximately $40,000. Advocate Investing Services LLC purchased a new position in shares of General Dynamics during the 4th quarter valued at approximately $44,000. Chapman Financial Group LLC purchased a new position in shares of General Dynamics during the 2nd quarter valued at approximately $43,000. Finally, Wealth Watch Advisors INC acquired a new position in shares of General Dynamics in the 3rd quarter valued at $56,000. Institutional investors and hedge funds own 86.14% of the company’s stock.
Key Headlines Impacting General Dynamics
Here are the key news stories impacting General Dynamics this week:
- Positive Sentiment: Q2 results exceeded expectations. General Dynamics reported $4.24 in diluted EPS versus the $3.96 consensus and $14.1 billion in revenue versus estimates of approximately $13.5 billion. Revenue rose 8.1% year over year, while operating earnings increased 11.9% and operating margin expanded to 10.4%. All four segments grew, led by Aerospace and Marine Systems. General Dynamics Reports Second-Quarter 2026 Financial Results
- Positive Sentiment: Order momentum and backlog improved. Quarterly orders reached $20 billion, producing a 1.4-to-1 book-to-bill ratio, while backlog rose to a record $136.5 billion. The company also generated $1.9 billion in operating cash flow, supporting confidence in future revenue and cash generation. General Dynamics Q2 Earnings Call Highlights
- Positive Sentiment: Large submarine contract strengthens long-term visibility. General Dynamics Electric Boat received $29.5 billion for five Columbia-class submarines and $42.1 billion for nine Virginia-class submarines, plus shipyard infrastructure support. The award could keep production facilities operating at high capacity for decades. General Dynamics Electric Boat Submarine Award
- Positive Sentiment: Full-year guidance was raised above consensus. GD guided to fiscal 2026 EPS of $16.80–$16.90, compared with analyst expectations near $16.67, and revenue guidance of about $55.7 billion versus consensus of $55.2 billion.
- Neutral Sentiment: Analyst opinion remains balanced. William Blair maintained a Hold rating, citing strong fundamentals but limited visibility into future U.S. defense spending. Shares are also near their 12-month high, potentially increasing sensitivity to profit-taking.
- Negative Sentiment: Execution concerns may be limiting the reaction. Management continues to face supply-chain constraints and margin pressure, while the stock’s valuation—around 24 times earnings—leaves less room for disappointment. A broad market selloff also weighed on defense shares, helping explain why GD declined even after beating estimates. General Dynamics Stock Reaction
Analyst Upgrades and Downgrades
A number of research firms recently commented on GD. DA Davidson lowered their target price on shares of General Dynamics from $384.00 to $375.00 in a research note on Thursday, April 30th. Citigroup restated a “neutral” rating on shares of General Dynamics in a research note on Thursday. Jefferies Financial Group raised their price target on shares of General Dynamics from $400.00 to $440.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. The Goldman Sachs Group dropped their price objective on shares of General Dynamics from $327.00 to $313.00 and set a “sell” rating on the stock in a report on Monday, May 4th. Finally, Wall Street Zen raised General Dynamics from a “buy” rating to a “strong-buy” rating in a research report on Saturday, June 13th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $393.32.
View Our Latest Analysis on General Dynamics
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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