General Dynamics (NYSE:GD) Releases Earnings Results, Beats Expectations By $0.28 EPS

General Dynamics (NYSE:GD) released 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. 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 for the quarter, compared to analysts’ expectations of $13.52 billion. During the same quarter in the previous year, the business posted $3.74 EPS. General Dynamics’s revenue for the quarter 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 Down 0.5%

NYSE:GD traded down $2.05 on Wednesday, hitting $391.14. 646,462 shares of the company’s stock were exchanged, compared to its average volume of 1,352,678. 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 52 week low of $306.03 and a 52 week high of $400.00. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.38 and a quick ratio of 0.90. The company has a market cap of $105.78 billion, a P/E ratio of 24.62, a price-to-earnings-growth ratio of 2.34 and a beta of 0.34.

General Dynamics Announces Dividend

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

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on GD. Citigroup cut their price target on shares of General Dynamics from $380.00 to $364.00 and set a “neutral” rating on the stock in a research note on Monday, May 18th. 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. Deutsche Bank Aktiengesellschaft reduced their target price on shares of General Dynamics from $387.00 to $377.00 and set a “hold” rating for the company in a research note on Wednesday, May 6th. Jefferies Financial Group increased their target price on General Dynamics from $400.00 to $440.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Finally, Wells Fargo & Company assumed coverage on General Dynamics in a report on Wednesday, April 1st. They issued an “overweight” rating and a $400.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $393.32.

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.

Insider Transactions at General Dynamics

In other General Dynamics news, Director Mark Malcolm sold 5,480 shares of the firm’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $365.00, for a total value 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. This trade represents a 33.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Mark Lagrand Burns sold 36,480 shares of the business’s stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $345.29, for a total value of $12,596,179.20. Following 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 position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 78,190 shares of company stock worth $27,041,022. 1.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On General Dynamics

A number of institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC lifted its stake in General Dynamics by 16.9% in the 4th quarter. Brighton Jones LLC now owns 2,885 shares of the aerospace company’s stock valued at $760,000 after purchasing an additional 417 shares during the last quarter. Acadian Asset Management LLC raised its stake in General Dynamics by 140.2% in the first quarter. Acadian Asset Management LLC now owns 3,445 shares of the aerospace company’s stock valued at $938,000 after buying an additional 2,011 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of General Dynamics in the second quarter valued at approximately $240,000. Flow Traders U.S. LLC acquired a new stake in shares of General Dynamics in the second quarter valued at approximately $352,000. Finally, Jump Financial LLC bought a new position in shares of General Dynamics during the 2nd quarter worth approximately $1,284,000. 86.14% of the stock is currently owned by institutional investors and hedge funds.

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.