General Dynamics (NYSE:GD) Announces Quarterly Earnings Results

General Dynamics (NYSE:GD) issued its quarterly earnings data on Friday. The aerospace company reported $4.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.12 by $0.37, Zacks reports. The firm had revenue of $14.57 billion during the quarter, compared to the consensus estimate of $13.72 billion. General Dynamics had a net margin of 8.18% and a return on equity of 17.43%. The business’s revenue for the quarter was up 12.9% compared to the same quarter last year. During the same period last year, the business posted $3.88 earnings per share.

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 Stock Performance

Shares of GD traded up $1.90 during mid-day trading on Friday, hitting $372.72. 2,503,929 shares of the company’s stock were exchanged, compared to its average volume of 1,296,444. General Dynamics has a 52 week low of $306.77 and a 52 week high of $400.00. The stock’s 50-day simple moving average is $351.71 and its 200-day simple moving average is $355.00. The firm has a market cap of $100.84 billion, a price-to-earnings ratio of 22.74, a price-to-earnings-growth ratio of 2.07 and a beta of 0.33. The company has a quick ratio of 0.96, a current ratio of 1.44 and a debt-to-equity ratio of 0.23.

General Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 9th will be given a dividend of $1.59 per share. This represents a $6.36 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date is Friday, October 9th. General Dynamics’s dividend payout ratio is presently 38.80%.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Robert W. Baird set a $430.00 target price on General Dynamics in a research report on Thursday, July 30th. Wells Fargo & Company increased their target price on General Dynamics from $400.00 to $440.00 and gave the stock an “overweight” rating in a research note on Tuesday, August 4th. Weiss Ratings reissued a “buy (b)” rating on shares of General Dynamics in a report on Monday, September 28th. Morgan Stanley boosted their price target on General Dynamics from $435.00 to $465.00 and gave the company an “overweight” rating in a research note on Thursday, July 30th. Finally, TD Cowen decreased their price objective on General Dynamics from $420.00 to $380.00 and set a “buy” rating on the stock in a report on Friday, October 9th. Eleven equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $402.44.

Insider Buying and Selling

In related news, CEO Phebe Novakovic sold 51,568 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $382.58, for a total value of $19,728,885.44. Following the completion of the sale, the chief executive officer directly owned 766,457 shares in the company, valued at approximately $293,231,119.06. The trade was a 6.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Robert K. Steel sold 7,440 shares of the stock in a transaction that occurred on 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 sale, the director directly owned 3,096 shares in the company, valued at $1,071,370.80. This represents a 70.62% decrease in their position. The SEC filing for this sale provides additional information. 1.40% of the stock is currently owned by 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.