General Dynamics (NYSE:GD) Issues Earnings Results, Beats Estimates By $0.43 EPS

General Dynamics (NYSE:GD) posted its earnings results on Wednesday. The aerospace company reported $4.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.67 by $0.43, Zacks reports. The company had revenue of $13.48 billion during the quarter, compared to the consensus estimate of $12.64 billion. General Dynamics had a net margin of 8.01% and a return on equity of 17.57%. The firm’s quarterly revenue was up 10.3% on a year-over-year basis. During the same period in the previous year, the firm posted $3.66 earnings per share.

Here are the key takeaways from General Dynamics’ conference call:

• Reported strong Q1 results with $4.10 EPS on $13.5B revenue, beating consensus by $0.43 and raised full?year EPS guidance to $16.45–$16.55.
• Exceptional cash and order performance: $2.2B operating cash flow (nearly $2B free cash flow, 174% conversion), ended with $3.7B cash and a record $131B backlog after >$26B of Q1 orders (book?to?bill 2.0).
• Segment momentum led by Marine Systems (21% revenue growth, 26.4% earnings improvement from higher throughput) and strong Aerospace results (highest Q1 Gulfstream deliveries, improved margins and early success of the G800); Technologies/Mission Systems also showed demand for AI, cyber and C4ISR capabilities.
• CapEx is stepping up (Q1 capex +40% to $203M; full?year guide 3.5–4% of sales) as the company invests in shipyards and production capacity, which management says will front?load cash usage even as annual free cash flow conversion remains targeted near 100% of net income.
• Near?term risks include supply?chain pinch points (single?source complex components and potential labor impacts tied to the Middle East affecting some Gulfstream activity) and ~$1B of notes maturing in June/August 2026 that the company plans to refinance.

General Dynamics Stock Up 7.8%

GD stock opened at $338.09 on Thursday. The stock has a market capitalization of $91.57 billion, a P/E ratio of 21.88, a P/E/G ratio of 2.09 and a beta of 0.38. The firm has a 50-day simple moving average of $345.77 and a 200-day simple moving average of $346.19. The company has a quick ratio of 0.89, a current ratio of 1.44 and a debt-to-equity ratio of 0.27. General Dynamics has a 52 week low of $266.98 and a 52 week high of $369.70.

General Dynamics Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 8th. Shareholders of record on Friday, April 10th will be given a $1.59 dividend. This represents a $6.36 dividend on an annualized basis and a dividend yield of 1.9%. This is an increase from General Dynamics’s previous quarterly dividend of $1.50. The ex-dividend date is Friday, April 10th. General Dynamics’s payout ratio is currently 41.17%.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. Morgan Stanley boosted their target price on shares of General Dynamics from $408.00 to $410.00 and gave the company an “overweight” rating in a research report on Thursday, January 29th. Argus boosted their target price on shares of General Dynamics from $380.00 to $395.00 and gave the company a “buy” rating in a research report on Thursday, February 19th. Wells Fargo & Company assumed coverage on shares of General Dynamics in a research report on Wednesday, April 1st. They issued an “overweight” rating and a $400.00 price objective for the company. Sanford C. Bernstein reiterated a “market perform” rating and issued a $398.00 price objective on shares of General Dynamics in a research report on Monday, January 12th. Finally, Susquehanna reiterated a “positive” rating and issued a $420.00 price objective on shares of General Dynamics in a research report on Thursday, January 15th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, General Dynamics presently has a consensus rating of “Moderate Buy” and a consensus target price of $389.78.

Key Headlines Impacting General Dynamics

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

• Positive Sentiment: First-quarter beat — Q1 revenue of about $13.5B (+10.3% YoY) and EPS of ~$4.10 topped consensus, driven by Marine Systems and Aerospace strength; margin and cash-flow metrics were solid, supporting the rally. PR Newswire Q1 Release
• Positive Sentiment: Raised FY?2026 EPS outlook — GD updated guidance to $16.450–$16.550 (above the prior consensus ~$16.30), signaling management confidence in revenue, margins and contract execution for the year. MSN: Shares Surge After Raising Guidance
• Positive Sentiment: Order momentum and cash flow — Company reported a 2:1 book-to-bill and strong operating cash flow (~$2.2B in Q1), improving backlog visibility and supporting multiple-year program execution. Analysts flagged orders as a key driver of the upside. Zacks: Orders and Cash Flow
• Positive Sentiment: Program execution update — The Columbia?class submarine schedule is tracking toward a 2028 delivery, reducing program timing risk and supporting Marine Systems revenue visibility. USNI: Columbia?class Tracking to 2028
• Neutral Sentiment: Valuation/technical context — Analysts and commentary note the stock has rallied after the beat-and-raise; some see the move as a recovery of sentiment rather than a permanent re-rating, so upside may depend on continued order flow and execution. Yahoo Finance: Valuation Check
• Negative Sentiment: Operational/legal uncertainty remains in pockets — Earlier reporting noted a stop-work order on a Texas artillery shell plant (Army/contract issue); while not the primary driver today, unresolved program-level disputes could pose localized execution or cash timing risk. TheStreet: War Department Stop?Work Item

Insider Activity at General Dynamics

In other news, EVP Marguerite Amy Gilliland sold 3,819 shares of the business’s stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $353.50, for a total transaction of $1,350,016.50. Following the completion of the sale, the executive vice president owned 44,767 shares of the company’s stock, valued at $15,825,134.50. The trade was a 7.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Phebe N. Novakovic sold 32,918 shares of the business’s stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $354.09, for a total transaction of $11,655,934.62. Following the sale, the chief executive officer directly owned 766,457 shares of the company’s stock, valued at $271,394,759.13. This represents a 4.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 51,260 shares of company stock worth $18,133,971 over the last three months. Company insiders own 1.40% of the company’s stock.

Institutional Trading of General Dynamics

Institutional investors and hedge funds have recently modified their holdings of the stock. Ankerstar Wealth LLC purchased a new stake in shares of General Dynamics during the fourth quarter worth about $37,000. JPL Wealth Management LLC acquired a new position in General Dynamics during the third quarter worth about $40,000. Chapman Financial Group LLC acquired a new position in General Dynamics during the second quarter worth about $43,000. Advocate Investing Services LLC acquired a new position in General Dynamics during the fourth quarter worth about $44,000. Finally, Rakuten Securities Inc. boosted its position in General Dynamics by 53.1% during 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 last quarter. Hedge funds and other institutional investors 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.