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

General Dynamics (NYSE:GD) posted its quarterly earnings results on Wednesday. The aerospace company reported $4.24 earnings per share for the quarter, beating analysts’ consensus estimates 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 prior year, the business earned $3.74 EPS. The firm’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 Performance

Shares of General Dynamics stock traded down $4.55 during trading on Wednesday, reaching $388.63. The company’s stock had a trading volume of 698,653 shares, compared to its average volume of 1,352,890. The company has a quick ratio of 0.90, a current ratio of 1.38 and a debt-to-equity ratio of 0.24. The business’s 50-day moving average price is $358.18 and its 200-day moving average price is $352.28. General Dynamics has a 52 week low of $306.03 and a 52 week high of $400.00. The firm has a market cap of $105.10 billion, a PE ratio of 24.55, a P/E/G ratio of 2.34 and a beta of 0.34.

General Dynamics Dividend Announcement

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

More General Dynamics News

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

• Positive Sentiment: Second-quarter results exceeded expectations. General Dynamics reported $4.24 in diluted EPS versus the approximately $3.96 consensus estimate, while revenue rose 8.1% year over year to $14.1 billion, ahead of expectations near $13.5 billion. Operating earnings increased 11.9%, and operating margin expanded 40 basis points to 10.4%. General Dynamics Reports Second-Quarter 2026 Financial Results
• Positive Sentiment: Growth was broad-based. Revenue increased across all four business segments, led by Aerospace and Marine Systems. The company cited strong defense orders and ended the quarter with a $136.5 billion backlog. Companywide book-to-bill was 1.4-to-1, including 1.5-to-1 in Aerospace, supporting future revenue visibility. General Dynamics posts higher quarterly profit on aerospace and marine strength
• Positive Sentiment: Management raised confidence in its full-year outlook. FY 2026 EPS guidance of $16.80-$16.90 and revenue guidance of $55.7 billion are above consensus expectations of approximately $16.67 EPS and $55.2 billion revenue. Cash from operations reached $1.9 billion, or 162% of net earnings. General Dynamics Reports Second-Quarter 2026 Financial Results
• Neutral Sentiment: General Dynamics also received favorable attention from reports that the Pentagon cleared a path toward its next Virginia-class submarine contract, although the available information does not indicate that a final award has been made. Pentagon clears path for General Dynamics’ next Virginia-class submarine contract
• Negative Sentiment: The broader market backdrop is unfavorable: U.S. stocks, including the Dow Jones Industrial Average, fell sharply during the session while crude oil surged, encouraging risk reduction across equities. Crude Oil Surges 7%; General Dynamics Posts Upbeat Earnings
• Negative Sentiment: Recent insider-trading data show company insiders made no open-market purchases and completed multiple sales over the past six months, a potential sentiment headwind, though these transactions may reflect compensation or diversification rather than a change in business fundamentals.

Wall Street Analyst Weigh In

Several equities analysts have commented on GD shares. Weiss Ratings upgraded shares of General Dynamics from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, July 1st. BNP Paribas Exane reduced their target price on shares of General Dynamics from $430.00 to $390.00 and set an “outperform” rating for the company in a report on Thursday, April 30th. DA Davidson decreased their price target on shares of General Dynamics from $384.00 to $375.00 in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of General Dynamics from $387.00 to $377.00 and set a “hold” rating on the stock in a report on Wednesday, May 6th. Finally, UBS Group upgraded shares of General Dynamics from a “neutral” rating to a “buy” rating in a research report on Thursday, June 11th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, General Dynamics currently has an average rating of “Moderate Buy” and an average price target of $393.32.

Insider Transactions at General Dynamics

In other General Dynamics news, EVP Mark Lagrand Burns sold 36,480 shares of General Dynamics stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $345.29, for a total value of $12,596,179.20. Following the completion of the sale, the executive vice president owned 38,975 shares in the company, valued at $13,457,677.75. The trade was a 48.35% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Mark Malcolm sold 5,480 shares of the business’s stock in a transaction dated 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 completion of the sale, the director directly owned 10,643 shares of the company’s stock, valued at $3,884,695. This represents a 33.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 78,190 shares of company stock worth $27,041,022. 1.40% of the stock is owned by insiders.

Institutional Investors Weigh In On General Dynamics

A number of large investors have recently added to or reduced their stakes in GD. T. Rowe Price Investment Management Inc. grew its holdings in shares of General Dynamics by 58.8% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 12,598 shares of the aerospace company’s stock worth $4,242,000 after purchasing an additional 4,664 shares in the last quarter. Van Diest Capital LLC acquired a new position in General Dynamics in the fourth quarter valued at about $213,000. Compound Planning Inc. lifted its position in General Dynamics by 26.9% during the fourth quarter. Compound Planning Inc. now owns 4,391 shares of the aerospace company’s stock worth $1,478,000 after purchasing an additional 932 shares during the period. Claris Financial LLC acquired a new stake in General Dynamics during the fourth quarter worth about $388,000. Finally, Invesco Ltd. increased its holdings in General Dynamics by 5.0% in the 4th quarter. Invesco Ltd. now owns 2,433,892 shares of the aerospace company’s stock valued at $819,394,000 after buying an additional 116,573 shares during the period. Institutional investors and hedge funds own 86.14% of the company’s stock.

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.