General Dynamics (NYSE:GD) Issues Quarterly Earnings Results, Beats Estimates By $0.37 EPS

General Dynamics (NYSE:GD) announced 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. General Dynamics had a net margin of 8.18% and a return on equity of 17.43%. The company had revenue of $14.57 billion for the quarter, compared to analyst estimates of $13.72 billion. During the same quarter last year, the business earned $3.88 EPS. General Dynamics’s revenue for the quarter 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 Price Performance

NYSE:GD traded up $1.90 during mid-day trading on Friday, reaching $372.72. 2,503,893 shares of the company were exchanged, compared to its average volume of 1,296,444. The stock has a market cap of $100.84 billion, a PE ratio of 22.74, a PEG ratio of 2.07 and a beta of 0.33. General Dynamics has a 12 month low of $306.77 and a 12 month high of $400.00. The company has a quick ratio of 0.96, a current ratio of 1.44 and a debt-to-equity ratio of 0.23. The company has a fifty day moving average of $351.71 and a 200 day moving average of $355.00.

General Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 9th will be issued 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 payout ratio is presently 38.80%.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. Wells Fargo & Company increased their price target on General Dynamics from $400.00 to $440.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 4th. UBS Group lifted their price target on shares of General Dynamics from $395.00 to $408.00 and gave the stock a “neutral” rating in a research report on Tuesday, September 8th. Jefferies Financial Group increased their price target on shares of General Dynamics from $400.00 to $440.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Weiss Ratings reissued a “buy (b)” rating on shares of General Dynamics in a research report on Monday, September 28th. Finally, Royal Bank Of Canada reduced their target price on shares of General Dynamics from $410.00 to $360.00 and set a “sector perform” rating for the company in a research note on Thursday, October 15th. Eleven research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $402.44.

Insider Activity at General Dynamics

In other General Dynamics news, Director Robert K. Steel sold 7,440 shares of the business’s stock in a transaction dated Wednesday, September 23rd. The stock was sold at an average price of $346.05, for a total value of $2,574,612.00. Following the completion of the transaction, the director directly owned 3,096 shares of the company’s stock, valued at approximately $1,071,370.80. The trade was a 70.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Phebe Novakovic sold 51,568 shares of General Dynamics 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 completion of the sale, the chief executive officer owned 766,457 shares in the company, valued at $293,231,119.06. This trade represents a 6.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 1.40% of the stock is currently owned by corporate insiders.

Trending Headlines about 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

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.