General Dynamics (NYSE:GD) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

General Dynamics (NYSE:GD) released its quarterly earnings results on Wednesday. The aerospace company reported $4.17 earnings per share for the quarter, topping the consensus estimate of $4.11 by $0.06, Zacks reports. The firm had revenue of $14.38 billion for the quarter, compared to analysts’ expectations of $13.77 billion. General Dynamics had a net margin of 8.18% and a return on equity of 18.27%. The business’s quarterly revenue was up 7.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $4.15 earnings per share.

Here are the key takeaways from General Dynamics’ conference call:

• General Dynamics reported Q4 EPS of $4.17 on revenue of $14.379B, with full‑year revenue up 10.1% and EPS up 13.4% versus 2024.
• The company finished 2025 with a record backlog of $118B and total estimated contract value of $179B, and a 2025 book‑to‑bill of 1.5x, giving strong near‑term revenue visibility.
• 2026 guidance calls for revenue of $54.3–54.8B, operating margin ~10.4%, EPS of $16.10–16.20, a target of 100% free cash flow conversion, and materially higher CapEx (expected >$900M, ~3.5–4% of sales).
• Marine Systems showed marked execution gains—Q4 revenue and productivity drove Electric Boat tonnage +13% and Q4 operating earnings up 72.5%, reflecting improved shipyard throughput.
• Aerospace margins were pressured by $41M of tariffs and a $75M G600 earnings shortfall (three fewer deliveries), plus tough prior‑year discrete items that make comparisons harder.

General Dynamics Stock Performance

Shares of General Dynamics stock traded down $9.51 during trading hours on Wednesday, reaching $357.11. 693,961 shares of the stock traded hands, compared to its average volume of 1,479,484. General Dynamics has a one year low of $239.20 and a one year high of $369.70. The firm has a market capitalization of $96.46 billion, a price-to-earnings ratio of 23.10, a P/E/G ratio of 1.80 and a beta of 0.41. The company has a quick ratio of 0.87, a current ratio of 1.40 and a debt-to-equity ratio of 0.29. The company has a 50 day moving average price of $347.09 and a 200 day moving average price of $334.16.

General Dynamics Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, February 6th. Shareholders of record on Friday, January 16th will be issued a $1.50 dividend. The ex-dividend date of this dividend is Friday, January 16th. This represents a $6.00 dividend on an annualized basis and a yield of 1.7%. General Dynamics’s dividend payout ratio is currently 38.89%.

Insider Activity

In other General Dynamics news, VP David Paddock sold 20,360 shares of the business’s stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $334.92, for a total transaction of $6,818,971.20. Following the completion of the sale, the vice president owned 36,644 shares of the company’s stock, valued at approximately $12,272,808.48. The trade was a 35.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 1.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On General Dynamics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in GD. Sivia Capital Partners LLC purchased a new stake in General Dynamics during the 2nd quarter valued at approximately $240,000. Brighton Jones LLC increased its position in General Dynamics by 16.9% in the fourth quarter. Brighton Jones LLC now owns 2,885 shares of the aerospace company’s stock worth $760,000 after purchasing an additional 417 shares during the last quarter. American Trust purchased a new stake in General Dynamics during the third quarter valued at $208,000. W Advisors LLC bought a new position in General Dynamics during the third quarter valued at $231,000. Finally, Cardiff Park Advisors LLC purchased a new position in shares of General Dynamics in the 3rd quarter worth $211,000. 86.14% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have commented on GD. Weiss Ratings reissued a “buy (b)” rating on shares of General Dynamics in a research note on Thursday, January 22nd. Morgan Stanley set a $385.00 price objective on General Dynamics in a research note on Monday, October 27th. Melius Research raised General Dynamics to a “strong-buy” rating in a research note on Tuesday, October 28th. Robert W. Baird set a $390.00 price objective on shares of General Dynamics in a report on Monday, October 27th. Finally, Wolfe Research raised their target price on General Dynamics from $400.00 to $415.00 and gave the company an “outperform” rating in a research note on Monday, January 12th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, General Dynamics presently has an average rating of “Moderate Buy” and a consensus price target of $366.70.

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.