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

Key Points

• General Dynamics exceeded third-quarter expectations, reporting EPS of $4.49 versus the $4.12 consensus and revenue of $14.57 billion versus estimates of $13.72 billion. Revenue increased 12.9% year over year.
• The company raised its 2026 EPS guidance to $17.20–$17.30 and expects revenue of $56.5–$56.8 billion. Nearly $99 billion in new orders lifted its record backlog to approximately $220 billion.
• General Dynamics generated $1.7 billion in quarterly operating cash flow, while CEO Phebe Novakovic announced her planned transition to executive chair as President Danny Deep prepares to succeed her.

General Dynamics (NYSE:GD - Get Free Report) announced its quarterly earnings results on Friday. The aerospace company reported $4.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.12 by $0.37, Zacks reports. The company had revenue of $14.57 billion during the quarter, compared to analyst estimates of $13.72 billion. General Dynamics had a net margin of 8.18% and a return on equity of 17.43%. The firm's revenue was up 12.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.88 EPS.

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 Trading Up 0.5%

Shares of NYSE:GD traded up $1.90 during trading on Friday, hitting $372.72. The company had a trading volume of 2,503,893 shares, compared to its average volume of 1,296,444. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.44 and a quick ratio of 0.96. The company has a fifty day simple moving average of $351.71 and a two-hundred day simple moving average of $355.00. General Dynamics has a one year low of $306.77 and a one year high of $400.00. The stock 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.

General Dynamics Dividend Announcement

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. The ex-dividend date is Friday, October 9th. This represents a $6.36 dividend on an annualized basis and a dividend yield of 1.7%. General Dynamics's payout ratio is 38.80%.

General Dynamics News Roundup

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.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. TD Cowen reduced their price objective on General Dynamics from $420.00 to $380.00 and set a "buy" rating on the stock in a research note on Friday, October 9th. Jefferies Financial Group lifted their price objective on shares of General Dynamics from $400.00 to $440.00 and gave the company a "buy" rating in a report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $384.00 target price on shares of General Dynamics in a research note on Thursday, July 30th. Citigroup reduced their target price on shares of General Dynamics from $404.00 to $374.00 and set a "neutral" rating for the company in a research report on Wednesday, October 7th. Finally, Bank of America lifted their price target on General Dynamics from $400.00 to $415.00 and gave the company a "buy" rating in a research report on Monday, July 6th. Eleven research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $402.44.

Insiders Place Their Bets

In related news, Director Robert K. Steel sold 7,440 shares of the firm's stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $346.05, for a total transaction of $2,574,612.00. Following the sale, the director owned 3,096 shares in the company, valued at approximately $1,071,370.80. This trade represents a 70.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Phebe N. Novakovic sold 51,568 shares of the company's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $382.58, for a total transaction of $19,728,885.44. Following the sale, the chief executive officer directly owned 766,457 shares of the company's stock, valued at $293,231,119.06. The trade was a 6.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.40% of the stock is currently owned by corporate insiders.

General Dynamics Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.