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

General Dynamics (NYSE:GD) issued its quarterly earnings data on Wednesday. The aerospace company reported $4.17 earnings per share (EPS) for the quarter, beating 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 company had revenue of $14.38 billion during the quarter, compared to analysts’ expectations of $13.77 billion. During the same period last year, the business earned $4.15 earnings per share. The business’s revenue was up 7.8% on a year-over-year basis.

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 Price Performance

NYSE GD traded down $9.21 during trading hours on Wednesday, hitting $357.41. The company had a trading volume of 756,382 shares, compared to its average volume of 1,484,942. The firm has a market capitalization of $96.54 billion, a price-to-earnings ratio of 23.12, a PEG ratio of 1.80 and a beta of 0.41. The company has a debt-to-equity ratio of 0.29, a quick ratio of 0.87 and a current ratio of 1.40. The firm has a 50 day simple moving average of $347.09 and a 200 day simple moving average of $334.16. General Dynamics has a 52 week low of $239.20 and a 52 week high of $369.70.

General Dynamics Announces Dividend

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

General Dynamics News Roundup

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

• Positive Sentiment: Earnings and revenue topped estimates: Q4 EPS $4.17 vs. consensus $4.11 and revenue $14.38B vs. $13.77B — a modest beat that confirms continued demand. Article Title
• Positive Sentiment: Segment strength drove growth: marine-systems and combat-systems boosted Q4 revenue, supporting defense-exposure tailwinds. Article Title
• Positive Sentiment: Backlog and book-to-bill are robust: company ended the year with ~$118B backlog and a quarterly book-to-bill of 1.6x, indicating multi-year revenue visibility. Article Title
• Positive Sentiment: New contract wins: company announced a major Navy contract as defense spending ramps up, adding near-term revenue and program continuity. Article Title
• Neutral Sentiment: Cash flow vs. capex: operating cash provided $1.6B (137% of net earnings), but capital expenditures rose ~27% to $1.2B — a mixed signal for free cash flow near term. Article Title
• Neutral Sentiment: Investor materials available: company released the press release, slide deck and hosted a conference call — useful for digging into segment details and outlook. Article Title
• Negative Sentiment: Margin and operational risks: previews and commentary flagged supply?chain issues that may have weighed on profits, a reason investors might be cautious despite top?line growth. Article Title
• Negative Sentiment: Beat was small: EPS beat was only $0.06 — some traders may view that as underwhelming relative to recent run-up, prompting profit?taking. Article Title

Insider Transactions at General Dynamics

In other General Dynamics news, VP David Paddock sold 20,360 shares of the business’s stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $334.92, for a total value of $6,818,971.20. Following the transaction, the vice president owned 36,644 shares in the company, valued at approximately $12,272,808.48. The trade was a 35.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On General Dynamics

Institutional investors have recently added to or reduced their stakes in the company. Sivia Capital Partners LLC acquired a new position in shares of General Dynamics in the 2nd quarter valued at about $240,000. Brighton Jones LLC lifted its holdings in General Dynamics by 16.9% during the fourth quarter. Brighton Jones LLC now owns 2,885 shares of the aerospace company’s stock valued at $760,000 after purchasing an additional 417 shares in the last quarter. American Trust acquired a new position in shares of General Dynamics during the 3rd quarter worth about $208,000. W Advisors LLC acquired a new stake in General Dynamics in the 3rd quarter worth about $231,000. Finally, Cardiff Park Advisors LLC acquired a new stake in shares of General Dynamics in the third quarter worth approximately $211,000. Hedge funds and other institutional investors own 86.14% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts have commented on GD shares. Bank of America lifted their target price on shares of General Dynamics from $370.00 to $400.00 and gave the stock a “buy” rating in a report on Tuesday, October 28th. Vertical Research raised shares of General Dynamics from a “hold” rating to a “buy” rating and set a $400.00 price target for the company in a research note on Monday, October 27th. Wall Street Zen cut shares of General Dynamics from a “buy” rating to a “hold” rating in a report on Friday, January 23rd. Susquehanna reiterated a “positive” rating and set a $420.00 price objective on shares of General Dynamics in a research report on Thursday, January 15th. Finally, The Goldman Sachs Group increased their price target on shares of General Dynamics from $280.00 to $293.00 and gave the stock a “sell” rating in a research report on Friday, October 10th. One equities research 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 given a Sell rating to the stock. Based on data from MarketBeat.com, General Dynamics has a consensus rating of “Moderate Buy” and an average target price of $366.70.

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.