General Dynamics (NYSE:GD) Releases Quarterly Earnings Results

General Dynamics (NYSE:GD) issued its quarterly earnings data on Wednesday. The aerospace company reported $4.24 earnings per share for the quarter, beating the consensus estimate of $3.96 by $0.28, Zacks reports. The company had revenue of $14.09 billion for the quarter, compared to analyst estimates of $13.52 billion. General Dynamics had a net margin of 8.07% and a return on equity of 17.41%. The company’s revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the firm earned $3.74 earnings per share. 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 Price Performance

NYSE GD traded down $2.05 during midday trading on Wednesday, hitting $391.14. The company had a trading volume of 646,462 shares, compared to its average volume of 1,352,678. The company has a market capitalization of $105.78 billion, a PE ratio of 24.62, a P/E/G ratio of 2.34 and a beta of 0.34. The company has a current ratio of 1.38, a quick ratio of 0.90 and a debt-to-equity ratio of 0.24. The firm has a 50-day moving average price of $358.18 and a 200-day moving average price of $352.28. General Dynamics has a twelve month low of $306.03 and a twelve month high of $400.00.

General Dynamics Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Thursday, July 2nd will be paid a dividend of $1.59 per share. This represents a $6.36 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Thursday, July 2nd. General Dynamics’s dividend payout ratio (DPR) is 40.03%.

Insider Transactions at General Dynamics

In related news, Director Mark Malcolm sold 5,480 shares of the stock in a transaction that occurred 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 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. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Mark Lagrand Burns sold 36,480 shares of General Dynamics stock in a transaction that occurred 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 transaction, the executive vice president directly owned 38,975 shares in the company, valued at $13,457,677.75. This trade represents a 48.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 78,190 shares of company stock valued at $27,041,022. 1.40% of the stock is owned by insiders.

Hedge Funds Weigh In On General Dynamics

Institutional investors have recently added to or reduced their stakes in the stock. Binnacle Investments Inc grew its stake in shares of General Dynamics by 4.0% during the third quarter. Binnacle Investments Inc now owns 878 shares of the aerospace company’s stock worth $299,000 after buying an additional 34 shares during the last quarter. Kirtland Hills Capital Management LLC boosted its holdings in shares of General Dynamics by 0.7% during the 4th quarter. Kirtland Hills Capital Management LLC now owns 4,828 shares of the aerospace company’s stock valued at $1,625,000 after acquiring an additional 35 shares in the last quarter. Venture Visionary Partners LLC grew its position in 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 acquiring an additional 39 shares during the last quarter. Summit Financial LLC increased its holdings in General Dynamics by 0.7% in the 4th quarter. Summit Financial LLC now owns 6,188 shares of the aerospace company’s stock worth $2,083,000 after purchasing an additional 43 shares in the last quarter. Finally, Abel Hall LLC raised its position in General Dynamics by 6.1% in the fourth quarter. Abel Hall LLC now owns 821 shares of the aerospace company’s stock valued at $276,000 after purchasing an additional 47 shares during the last quarter. 86.14% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting General Dynamics

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

• Positive Sentiment: Earnings and revenue exceeded expectations. Second-quarter adjusted EPS was $4.24, above consensus estimates near $3.95–$3.96, while revenue reached $14.1 billion versus expectations of roughly $13.5 billion. EPS rose 13.4% year over year and revenue increased 8.1%. General Dynamics Q2 Earnings Surpass Estimates, Revenues Improve Y/Y
• Positive Sentiment: Growth was broad-based. Revenue increased across all four business segments, with Aerospace and Marine Systems leading performance. Operating earnings climbed 11.9%, and the operating margin expanded 40 basis points to 10.4%. General Dynamics posts higher quarterly profit on aerospace and marine strength
• Positive Sentiment: Backlog and orders support future revenue. Quarterly orders totaled $20 billion, producing a companywide book-to-bill ratio of 1.4-to-1 and lifting backlog to $136.5 billion. Aerospace posted a particularly strong 1.5-to-1 book-to-bill ratio. General Dynamics Q2 revenue rises 8.1% to $14.1 billion
• Positive Sentiment: Cash generation was strong. General Dynamics generated $1.9 billion in operating cash flow, equivalent to 162% of net earnings, while paying $429 million in dividends. The Pentagon also reportedly cleared a path for the company’s next Virginia-class submarine contract, potentially supporting Marine Systems demand.
• Neutral Sentiment: The shares recently reached a new 12-month high, which may have increased the likelihood of profit-taking after the earnings release. The broader market was also focused on the Federal Reserve’s rate decision and major technology earnings, creating competing influences.
• Negative Sentiment: Insider selling may weigh on sentiment. Quiver Quantitative reported 12 insider sales and no purchases over the past six months, including sales by CEO Phebe Novakovic and Executive Vice President Mark LaGrand Burns. These transactions do not necessarily indicate a change in business outlook, but they can temper investor enthusiasm.

Wall Street Analyst Weigh In

GD has been the topic of several research analyst reports. Wall Street Zen raised shares of General Dynamics from a “buy” rating to a “strong-buy” rating in a report on Saturday, June 13th. JPMorgan Chase & Co. upped their target price on General Dynamics from $385.00 to $400.00 and gave the company an “overweight” rating in a research report on Thursday, April 30th. BNP Paribas Exane decreased their price objective on General Dynamics from $430.00 to $390.00 and set an “outperform” rating on the stock in a report on Thursday, April 30th. UBS Group upgraded General Dynamics from a “neutral” rating to a “buy” rating in a research report on Thursday, June 11th. Finally, Wells Fargo & Company assumed coverage on General Dynamics in a report on Wednesday, April 1st. They set an “overweight” rating and a $400.00 target price for the company. Two equities research 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $393.32.

General Dynamics Company Profile

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.