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

General Dynamics (NYSE:GD) announced its earnings results on Wednesday. The aerospace company reported $4.17 earnings per share for the quarter, topping analysts’ consensus estimates of $4.11 by $0.06, Zacks reports. General Dynamics had a return on equity of 18.27% and a net margin of 8.18%.The business had revenue of $14.38 billion for the quarter, compared to analyst estimates of $13.77 billion. During the same period in the prior year, the company earned $4.15 EPS. The company’s quarterly revenue was up 7.8% compared to the same quarter last year. 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 Trading Down 1.0%

GD stock traded down $3.67 during midday trading on Thursday, hitting $353.01. The company had a trading volume of 129,327 shares, compared to its average volume of 1,493,969. The stock has a market cap of $95.36 billion, a price-to-earnings ratio of 22.88, a PEG ratio of 1.81 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 company has a current ratio of 1.40, a quick ratio of 0.87 and a debt-to-equity ratio of 0.29. The stock’s 50 day moving average price is $347.35 and its 200 day moving average price is $334.31.

General Dynamics Announces Dividend

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

Insider Activity at General Dynamics

In related news, VP David Paddock sold 20,360 shares of the company’s stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $334.92, for a total transaction of $6,818,971.20. Following the completion of the sale, the vice president directly owned 36,644 shares in the company, valued at $12,272,808.48. This represents a 35.72% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 1.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in GD. Binnacle Investments Inc boosted its stake in shares of General Dynamics by 4.0% during the 3rd quarter. Binnacle Investments Inc now owns 878 shares of the aerospace company’s stock valued at $299,000 after purchasing an additional 34 shares in the last quarter. Rakuten Securities Inc. lifted its holdings 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 buying an additional 60 shares during the period. Voya Financial Advisors Inc. lifted its holdings in General Dynamics by 1.0% in the second quarter. Voya Financial Advisors Inc. now owns 5,940 shares of the aerospace company’s stock worth $1,727,000 after buying an additional 60 shares during the period. Integrated Investment Consultants LLC boosted its position in General Dynamics by 9.0% during the 3rd quarter. Integrated Investment Consultants LLC now owns 918 shares of the aerospace company’s stock valued at $313,000 after acquiring an additional 76 shares in the last quarter. Finally, Prosperity Consulting Group LLC grew its holdings in shares of General Dynamics by 3.1% during the 3rd quarter. Prosperity Consulting Group LLC now owns 2,522 shares of the aerospace company’s stock worth $860,000 after acquiring an additional 76 shares during the period. 86.14% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

GD has been the subject of several research analyst reports. Melius Research upgraded shares of General Dynamics to a “strong-buy” rating in a research report on Tuesday, October 28th. TD Cowen raised their price objective on shares of General Dynamics from $370.00 to $390.00 and gave the company a “buy” rating in a research report on Wednesday, January 14th. BNP Paribas Exane lifted their price objective on shares of General Dynamics from $410.00 to $420.00 and gave the stock an “outperform” rating in a report on Thursday, January 8th. Robert W. Baird set a $390.00 target price on General Dynamics in a research note on Monday, October 27th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $400.00 price target on shares of General Dynamics in a research note on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $366.95.

Key Headlines Impacting General Dynamics

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

• Positive Sentiment: Q4 beats — GD reported EPS of $4.17 (vs. $4.11 est.) and revenue of $14.38B (vs. $13.77B est.), showing solid top‑ and bottom‑line performance that demonstrates ongoing operational strength. General Dynamics Reports Fourth-Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Segment strength — Marine Systems and Combat Systems drove year‑over‑year revenue growth, supporting the beat and pointing to durable defense demand. Strong Marine Systems Performance Drives GD’s Q4 Earnings and Revenues
• Positive Sentiment: Backlog and contracts — Book‑to‑bill was strong (1.6x for the quarter) and backlog ended around $118B; the company also secured a major Navy contract, underpinning multi‑year revenue visibility. General Dynamics Corporation (GD) Secures Major Navy Contract as Defense Spending Ramps Up
• Neutral Sentiment: Call/transcript — Management reiterated segment trends and backlog positioning on the Q4 earnings call; the full call transcript provides details for modeling throughput and margins. General Dynamics Corporation (GD) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Guidance shortfall — Management set FY‑2026 EPS at $16.10–$16.20 versus the Street ~$17.26, which compresses near‑term valuation and is the primary headwind dragging the stock lower today.
• Negative Sentiment: Tariff hit — Management absorbed a roughly $41M tariff impact in the quarter; while not large versus revenue, it is a tangible near‑term margin headwind. Defense Giant General Dynamics Absorbs $41 Million Tariff Blow, Backlog Hits $118 Billion

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.