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

General Dynamics (NYSE:GD) posted its quarterly earnings data on Wednesday. The aerospace company reported $4.17 EPS for the quarter, beating analysts’ consensus estimates of $4.11 by $0.06, Zacks reports. The company had revenue of $14.38 billion during the quarter, compared to analysts’ expectations of $13.77 billion. General Dynamics had a return on equity of 17.57% and a net margin of 8.01%.General Dynamics’s revenue for the quarter was up 7.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $4.15 earnings per share. General Dynamics updated its FY 2026 guidance to 16.100-16.200 EPS.

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 GD traded down $1.42 during mid-day trading on Friday, reaching $348.54. The company had a trading volume of 255,585 shares, compared to its average volume of 1,517,040. The stock has a market capitalization of $94.15 billion, a P/E ratio of 22.58, a PEG ratio of 1.76 and a beta of 0.41. General Dynamics has a 52-week low of $239.20 and a 52-week high of $369.70. The stock has a 50 day moving average of $347.56 and a two-hundred day moving average of $334.43. The company has a quick ratio of 0.87, a current ratio of 1.44 and a debt-to-equity ratio of 0.27.

General Dynamics Dividend Announcement

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

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Vertical Research upgraded shares of General Dynamics from a “hold” rating to a “buy” rating and set a $400.00 target price for the company in a research report on Monday, October 27th. Morgan Stanley boosted their price objective on shares of General Dynamics from $408.00 to $410.00 and gave the company an “overweight” rating in a research report on Thursday. Bank of America reaffirmed a “buy” rating and issued a $400.00 target price on shares of General Dynamics in a report on Friday. Sanford C. Bernstein reissued a “market perform” rating and set a $398.00 price target on shares of General Dynamics in a report on Monday, January 12th. Finally, The Goldman Sachs Group raised their price objective on General Dynamics from $280.00 to $293.00 and gave the stock a “sell” rating in a research note on Friday, October 10th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, General Dynamics has a consensus rating of “Moderate Buy” and an average price target of $372.32.

Trending Headlines about General Dynamics

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

• Positive Sentiment: Q4 beat: GD reported Q4 EPS of $4.17 and revenue of $14.38B, topping estimates; backlog climbed to about $118B, driven by Marine and Combat Systems — supports revenue visibility. Defense Giant General Dynamics Absorbs $41 Million Tariff Blow, Backlog Hits $118 Billion
• Positive Sentiment: Analyst support: Bank of America reaffirmed a “buy” on GD with a $400 price target (~14% upside from recent levels), and coverage consensus remains in the “moderate buy” range — this helps underwrite the stock despite near-term concerns. Benzinga
• Neutral Sentiment: Earnings details/earnings call: Management highlighted strong shipbuilding and Marine Systems performance and discussed backlog and execution, but flagged headwinds; full call transcript and presentation provide context for margins and timing. General Dynamics Q4 2025 Earnings Call Transcript
• Negative Sentiment: Lower FY?2026 EPS guidance: GD set FY?2026 EPS at $16.10–$16.20 vs. street consensus ~$17.26 — the guidance cut/shortfall is the primary driver of the stock pullback as it compresses near?term valuation. General Dynamics Earnings Call Signals Growth Amid Headwinds
• Negative Sentiment: Political/tariff risk for Gulfstream: Reports say the U.S. may impose tariffs and decertify some Canadian-made aircraft linked to Gulfstream supply/approvals — a potential headwind to Gulfstream (General Dynamics unit) and a source of uncertainty. Trump Says US to Decertify, Levy Tariff on Canadian Planes

Insider Transactions at General Dynamics

In other General Dynamics news, VP David Paddock sold 20,360 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $334.92, for a total value of $6,818,971.20. Following the sale, the vice president owned 36,644 shares in the company, valued at approximately $12,272,808.48. This represents a 35.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On General Dynamics

A number of institutional investors have recently bought and sold shares of GD. JPL Wealth Management LLC purchased a new stake in shares of General Dynamics in the 3rd quarter valued at approximately $40,000. Chapman Financial Group LLC acquired a new position in General Dynamics in the second quarter valued at approximately $43,000. Rakuten Securities Inc. grew its position in General Dynamics by 53.1% in the second quarter. Rakuten Securities Inc. now owns 173 shares of the aerospace company’s stock worth $50,000 after acquiring an additional 60 shares during the period. Wealth Watch Advisors INC acquired a new stake in General Dynamics during the third quarter worth $56,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of General Dynamics in the 3rd quarter valued at $75,000. 86.14% of the stock is owned by hedge funds and other institutional investors.

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.