Track market-moving stories before they get noisy

California State Teachers Retirement System raised its stake in shares of General Dynamics Corporation (NYSE:GD – Free Report) by 35,603.0% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 126,417,629 shares of the aerospace company’s stock after purchasing an additional 126,063,548 shares during the period. California State Teachers Retirement System owned 46.72% of General Dynamics worth $44,782,181,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of GD. Oxford Financial Group LTD. LLC lifted its position in General Dynamics by 1.9% in the second quarter. Oxford Financial Group LTD. LLC now owns 1,426 shares of the aerospace company’s stock worth $505,000 after buying an additional 26 shares during the last quarter. Willner & Heller LLC lifted its holdings in shares of General Dynamics by 1.4% in the 2nd quarter. Willner & Heller LLC now owns 2,050 shares of the aerospace company’s stock worth $726,000 after acquiring an additional 28 shares during the last quarter. Meriwether Wealth & Planning LLC boosted its stake in shares of General Dynamics by 0.8% during the 2nd quarter. Meriwether Wealth & Planning LLC now owns 3,443 shares of the aerospace company’s stock worth $1,220,000 after purchasing an additional 28 shares during the period. Capital Advisors Inc. OK boosted its stake in shares of General Dynamics by 0.6% during the 2nd quarter. Capital Advisors Inc. OK now owns 4,551 shares of the aerospace company’s stock worth $1,612,000 after purchasing an additional 29 shares during the period. Finally, Klingman & Associates LLC grew its holdings in General Dynamics by 3.3% during the 1st quarter. Klingman & Associates LLC now owns 949 shares of the aerospace company’s stock valued at $326,000 after purchasing an additional 30 shares during the last quarter. Hedge funds and other institutional investors own 86.14% of the company’s stock.

Analyst Ratings Changes GD has been the subject of several analyst reports. Bank of America raised their price objective on shares of General Dynamics from $400.00 to $415.00 and gave the stock a “buy” rating in a research note on Monday, July 6th. Wells Fargo & Company increased their price target on General Dynamics from $400.00 to $440.00 and gave the stock an “overweight” rating in a report on Tuesday, August 4th. BNP Paribas Exane raised their price target on General Dynamics from $390.00 to $430.00 and gave the stock an “outperform” rating in a research note on Thursday, July 30th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $384.00 price objective on shares of General Dynamics in a report on Thursday, July 30th. Finally, Wall Street Zen lowered General Dynamics from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $410.89.

Check Out Our Latest Stock Report on General Dynamics General Dynamics Stock Performance Shares of GD stock opened at $359.54 on Monday. The firm has a market cap of $97.28 billion, a price-to-earnings ratio of 21.94, a PEG ratio of 2.07 and a beta of 0.32. The company has a quick ratio of 0.96, a current ratio of 1.44 and a debt-to-equity ratio of 0.23. General Dynamics Corporation has a 52-week low of $306.77 and a 52-week high of $400.00. The company’s 50 day moving average is $378.48 and its 200 day moving average is $357.36.

General Dynamics (NYSE:GD – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The aerospace company reported $4.24 earnings per share for the quarter, topping analysts’ consensus estimates of $3.96 by $0.28. The firm had revenue of $14.09 billion during the quarter, compared to analysts’ expectations of $13.52 billion. General Dynamics had a return on equity of 17.43% and a net margin of 8.18%.The firm’s quarterly revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the business posted $3.74 EPS. General Dynamics has set its FY 2026 guidance at 16.800-16.900 EPS. On average, sell-side analysts anticipate that General Dynamics Corporation will post 16.99 EPS for the current fiscal year.

General Dynamics Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 9th will be issued a $1.59 dividend. This represents a $6.36 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Friday, October 9th. General Dynamics’s payout ratio is currently 38.80%.

Insider Activity In related news, CEO Phebe Novakovic sold 51,568 shares of the business’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 transaction, the chief executive officer directly owned 766,457 shares in the company, valued at $293,231,119.06. The trade was a 6.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Mark Malcolm sold 5,480 shares of the company’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $365.00, for a total value of $2,000,200.00. Following the transaction, the director directly owned 10,643 shares in the company, valued at $3,884,695. This represents a 33.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 100,228 shares of company stock worth $38,052,853. Insiders own 1.40% of the company’s stock.

General Dynamics Profile (Free Report)

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.

Recommended Stories Five stocks we like better than General Dynamics AI Token Costs Are Changing the Hardware vs. Software Debate 3 ETFs That Could Move as Rate Expectations Shift 3 Stocks With September Catalysts Investors Shouldn’t Ignore Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains Want to see what other hedge funds are holding GD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for General Dynamics Corporation (NYSE:GD – Free Report).

Receive News & Ratings for General Dynamics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for General Dynamics and related companies with MarketBeat.com's FREE daily email newsletter.

Biondo Investment Advisors LLC bought a new stake in shares of General Dynamics Corporation (NYSE:GD – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 25,075 shares of the aerospace company’s stock, valued at approximately $8,883,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in GD. Whipplewood Advisors LLC increased its position in General Dynamics by 1,725.0% during the 1st quarter. Whipplewood Advisors LLC now owns 73 shares of the aerospace company’s stock valued at $25,000 after purchasing an additional 69 shares during the period. Scarborough Advisors LLC bought a new stake in shares of General Dynamics during the 1st quarter valued at about $29,000. Wilkerson Advisory Group LLC boosted its stake in shares of General Dynamics by 79.6% during the 1st quarter. Wilkerson Advisory Group LLC now owns 88 shares of the aerospace company’s stock valued at $30,000 after purchasing an additional 39 shares in the last quarter. Paladin Partners LLC purchased a new position in shares of General Dynamics during the second quarter valued at about $30,000. Finally, Center for Financial Planning Inc. raised its stake in General Dynamics by 220.7% in the fourth quarter. Center for Financial Planning Inc. now owns 93 shares of the aerospace company’s stock worth $31,000 after buying an additional 64 shares in the last quarter. Institutional investors own 86.14% of the company’s stock.

Wall Street Analysts Forecast Growth Several research analysts have recently issued reports on GD shares. UBS Group increased their target price on General Dynamics from $366.00 to $395.00 and gave the stock a “neutral” rating in a research report on Monday, August 3rd. DA Davidson decreased their price objective on General Dynamics from $384.00 to $375.00 in a report on Thursday, April 30th. TD Cowen raised their price objective on General Dynamics from $390.00 to $420.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Susquehanna boosted their target price on shares of General Dynamics from $420.00 to $455.00 and gave the company a “positive” rating in a report on Thursday, July 30th. Finally, Royal Bank Of Canada increased their price target on shares of General Dynamics from $385.00 to $410.00 and gave the stock a “sector perform” rating in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, General Dynamics presently has a consensus rating of “Moderate Buy” and an average target price of $410.89.

View Our Latest Stock Analysis on General Dynamics Insider Buying and Selling In other news, EVP Marguerite Amy Gilliland sold 43,180 shares of the business’s stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $378.04, for a total value of $16,323,767.20. Following the transaction, the executive vice president directly owned 44,767 shares in the company, valued at $16,923,716.68. The trade was a 49.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Mark Malcolm sold 5,480 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $365.00, for a total value of $2,000,200.00. Following the completion of the transaction, the director directly owned 10,643 shares in the company, valued at approximately $3,884,695. This represents a 33.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 100,228 shares of company stock valued at $38,052,853. Company insiders own 1.40% of the company’s stock.

General Dynamics Price Performance Shares of GD opened at $384.50 on Monday. The firm has a market cap of $104.03 billion, a PE ratio of 23.46, a P/E/G ratio of 2.22 and a beta of 0.32. General Dynamics Corporation has a 1-year low of $306.77 and a 1-year high of $400.00. The company has a current ratio of 1.44, a quick ratio of 0.96 and a debt-to-equity ratio of 0.23. The firm has a fifty day simple moving average of $374.15 and a two-hundred day simple moving average of $355.88.

General Dynamics (NYSE:GD – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The aerospace company reported $4.24 earnings per share for the quarter, topping the consensus estimate of $3.96 by $0.28. General Dynamics had a net margin of 8.18% and a return on equity of 17.43%. The firm had revenue of $14.09 billion for the quarter, compared to analysts’ expectations of $13.52 billion. During the same quarter in the prior year, the business earned $3.74 EPS. The business’s quarterly revenue was up 8.1% on a year-over-year basis. General Dynamics has set its FY 2026 guidance at 16.800-16.900 EPS. On average, equities analysts anticipate that General Dynamics Corporation will post 16.97 EPS for the current year.

General Dynamics Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 9th will be paid a dividend of $1.59 per share. 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 Profile (Free Report)

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.

Featured Articles Five stocks we like better than General Dynamics VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You? 3 Closed-End Funds to Maximize Dividend Payments Rocket Lab’s Sell-Off Is Fading—Is It Finally Safe to Buy? $27 Billion in Buybacks: 3 Stocks Betting Their Strong Runs Aren’t Over Want to see what other hedge funds are holding GD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for General Dynamics Corporation (NYSE:GD – Free Report).

Receive News & Ratings for General Dynamics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for General Dynamics and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways Lockheed Martin, RTX and other defense majors face a major missile production push from the Pentagon.Patriot stocks have fallen about 65%, while THAAD inventories have dropped at least 38%.ETFs like ITA offer diversified exposure to defense companies poised to benefit from higher orders. The Pentagon is currently pressing the U.S. defense contractors to accelerate weapon production dramatically. In a recent memo, deputy defense secretary Steve Feinberg gave major contractors just 21 days to submit plans for "significantly faster, more aggressive delivery schedules and/or increased production for critical capabilities" (as cited in CNBC).

This directive comes in the face of the U.S. military witnessing critical shortages in its munition stockpiles, with some key missile inventories depleted by over 65% following five months of war with Iran. 

For investors, this confluence of urgent demand and mandated production increases creates a potentially lucrative entry point into the defense sector, particularly through diversified defense exchange-traded funds (ETFs) that offer broad exposure to the military contractors poised to benefit most from this massive replenishment cycle.

But before we highlight those fund names, investors may first want to assess the severity of the munitions depletion challenge and the extent to which the Pentagon’s production push could benefit defense contractors and, by extension, the funds that hold them.

The Depletion Crisis & Pentagon’s StanceEmpirically, U.S. weapons stockpiles, particularly missiles, have been critically depleted by the combination of sustained combat operations and prior commitments. According to a comprehensive analysis by the Center for Strategic and International Studies (“CSIS”), the war with Iran has consumed a staggering quantity of America's most advanced missile interceptors. 

The pre-war inventory of Patriot interceptors, which stood at 2,330, has plummeted to an estimated 759-827 missiles, marking a reduction of approximately 65%. Similarly, THAAD interceptor stocks have fallen from 452 to just 234-278 units, a decline of at least 38%.

While the Iran conflict has become the primary source of pressure on U.S. missile inventories, current stockpile depletion has also been compounded by years of military aid to Ukraine, including the transfer of roughly 600 Patriot interceptors to help defend against Russian attacks.

To this end, the CSIS has warned that replenishing reserves for these critical weapons could take more than three years, creating a significant "window of vulnerability" if another major conflict were to erupt, particularly with China. Notably, CSIS estimates replenishment of stockpiles will take approximately 42 months for PAC-3 MSE interceptors and up to 53 months for THAAD systems. 

This growing gap between supply availability and operational demand must have forced the Pentagon to aggressively push for a strong ramp-up in weapon production.

Benefits for Defense Majors & ETFsThe Pentagon's recent push for accelerated production translates directly into massive revenue growth opportunities for defense companies like Lockheed Martin (LMT - Free Report) , RTX Corp (RTX - Free Report) , Boeing (BA - Free Report) and General Dynamics (GD - Free Report) , which are the primary contractors for the missiles that suffered a depleted stockpile.

Lockheed, for instance, recently received a contract worth up to $58.6 billion to produce Patriot Advanced Capability-3 (PAC-3) MSE interceptors through fiscal 2032, while the Pentagon is working to triple Patriot production capacity and quadruple that for THAAD systems. RTX, which manufactures the Patriot system, and Lockheed Martin, which produces the PAC-3 interceptor, the latest version of the Patriot missile, are positioned to benefit substantially from these increased orders.

The accelerated procurement targets also include advanced radar systems from both companies, such as RTX's naval AN/SPY-6 and

Lockheed's land-based AN/TPY-6, ensuring sustained demand across multiple product lines. 

The production surge extends to Boeing and General Dynamics, as the Pentagon seeks faster delivery of programs like the T-7A Red Hawk training aircraft and TAO-205 naval vessels. 

As these production push served via multi-year defense contracts, they translate into strong backlogs and revenue expansion for the aforementioned defense stocks and ETFs holding them.

Defense ETFs to BuyConsidering the aforementioned discussion, this might be an ideal time for prudent investors to add the following ETFs to their portfolios to capture the upcoming rally in the defense industry without getting exposed to individual stock risk.

iShares U.S. Aerospace & Defense ETF (ITA - Free Report)

This fund, with net assets worth $15.07 billion, offers exposure to 49 U.S. aerospace and defense companies, including manufacturers of commercial and military aircraft. GE Aerospace holds the first spot in this fund, with 21.44% weightage, while RTX holds the second spot with 16.92% weightage. BA holds the third spot in this fund, with 9.25% weightage, while GD holds the fourth spot with 4.68% weightage. LMT holds the fifth spot in this ETF, with 4.63% weightage. 

ITA has gained 17.3% year-to-date and charges 37 basis points (bps) in fees. It traded at a volume of 0.37 million shares in the last trading session and holds a Zacks ETF Rank #2 (Buy). 

Invesco Aerospace & Defense ETF (PPA - Free Report)

This fund, with a market value of $8.74 billion, offers exposure to 62 companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations. RTX holds the first spot in this fund, with 8.20% weightage, while BA holds the second spot with 7.01% weightage. LMT holds the fourth spot in this fund, with 6.52% weightage, while GD holds the fifth spot with 4.86% weightage. 

PPA has rallied 17.5% year-to-date and charges 58 bps in fees. It traded at a volume of 0.12 million shares in the last trading session and holds a Zacks ETF Rank #2. 

State Street SPDR S&P Aerospace & Defense ETF (XAR - Free Report)

This fund, with assets under management (AUM) worth $6.62 billion, offers exposure to 47 aerospace and defense companies. Karman Holdings holds the first spot in this fund, with 3.44% weightage, while RTX holds the fourth spot with 3.20% weightage. GD holds the seventh spot in this fund with 2.94% weightage, while LMT holds the eighth spot with 2.91% weightage. 

XAR has soared 21.2% year-to-date and charges 35 bps in fees. It traded at a volume of 0.11 million shares in the last trading session and holds a Zacks ETF Rank #2.   

Axiom Investment Management LLC acquired a new position in shares of General Dynamics Corporation (NYSE:GD – Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 3,680 shares of the aerospace company’s stock, valued at approximately $1,263,000. General Dynamics makes up about 1.0% of Axiom Investment Management LLC’s investment portfolio, making the stock its 29th biggest position.

A number of other institutional investors have also added to or reduced their stakes in GD. AQR Capital Management LLC boosted its stake in General Dynamics by 118.3% during the 3rd quarter. AQR Capital Management LLC now owns 1,663,847 shares of the aerospace company’s stock valued at $567,372,000 after purchasing an additional 901,679 shares during the last quarter. Northern Trust Corp lifted its holdings in shares of General Dynamics by 35.0% in the third quarter. Northern Trust Corp now owns 3,332,917 shares of the aerospace company’s stock valued at $1,136,525,000 after purchasing an additional 863,392 shares in the last quarter. Balyasny Asset Management L.P. boosted its position in shares of General Dynamics by 831.1% during the third quarter. Balyasny Asset Management L.P. now owns 737,259 shares of the aerospace company’s stock valued at $251,405,000 after buying an additional 658,081 shares during the last quarter. Vanguard Group Inc. grew its holdings in General Dynamics by 2.2% during the fourth quarter. Vanguard Group Inc. now owns 24,767,330 shares of the aerospace company’s stock worth $8,338,169,000 after buying an additional 528,769 shares in the last quarter. Finally, Corient Private Wealth LLC lifted its position in shares of General Dynamics by 613.0% during the 4th quarter. Corient Private Wealth LLC now owns 613,732 shares of the aerospace company’s stock worth $206,619,000 after buying an additional 527,651 shares in the last quarter. 86.14% of the stock is owned by institutional investors and hedge funds.

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

Positive Sentiment: Strong Q2 results: General Dynamics reported adjusted earnings of $4.24 per share and revenue of $14.09 billion, exceeding estimates of $3.96 and $13.52 billion, respectively. Revenue increased 8.1% year over year, while management highlighted broad-based strength, record backlog and solid cash generation. General Dynamics Corporation Q2 2026 Earnings Call Summary Positive Sentiment: Largest catalyst is the submarine award: General Dynamics Electric Boat received $29.5 billion for five Columbia-class submarines and $42.1 billion for nine Virginia-class submarines, plus infrastructure support. The $76.6 billion award strengthens long-term visibility and backlog, although the contract value will be recognized over many years. General Dynamics Electric Boat Submarine Award Positive Sentiment: Analyst targets moved higher: Morgan Stanley raised its target to $465 and maintained an overweight rating, Susquehanna lifted its target to $455 with a positive rating, and BNP Paribas Exane raised its target to $430 with an outperform rating. These revisions reflect confidence in GD’s backlog and defense demand. Positive Sentiment: Growth profile remains attractive: Zacks cited General Dynamics’ earnings growth, improving business momentum and favorable growth characteristics, while the company maintained fiscal 2026 earnings guidance of approximately $16.80–$16.90 per share. Why General Dynamics Is a Strong Growth Stock Neutral Sentiment: Valuation is increasingly debated: Some research indicates the shares could remain below estimated intrinsic value, while other analysts argue that the strong defense outlook is already reflected in the stock’s elevated valuation after its substantial multiyear gains. Negative Sentiment: Risks remain: Analysts have cited supply-chain and margin pressures, limited visibility into future U.S. defense spending and potential execution challenges associated with the large submarine program. Several reports maintain neutral or downgrade views despite the strong fundamentals. Insider Activity at General Dynamics In other General Dynamics news, EVP Mark Lagrand Burns sold 36,480 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $345.29, for a total transaction of $12,596,179.20. Following the transaction, the executive vice president directly owned 38,975 shares of the company’s stock, valued at approximately $13,457,677.75. The trade was a 48.35% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark Malcolm sold 5,480 shares of the firm’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $365.00, for a total value of $2,000,200.00. Following the completion of the transaction, the director owned 10,643 shares of the company’s stock, valued at approximately $3,884,695. The trade was a 33.99% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 78,190 shares of company stock worth $27,041,022 over the last three months. Insiders own 1.40% of the company’s stock.

Wall Street Analyst Weigh In Several brokerages have commented on GD. TD Cowen lifted their price objective on shares of General Dynamics from $390.00 to $420.00 and gave the stock a “buy” rating in a research report on Thursday. Susquehanna upped their price objective on General Dynamics from $420.00 to $455.00 and gave the company a “positive” rating in a research note on Thursday. Citigroup increased their price objective on General Dynamics from $364.00 to $404.00 and gave the company a “neutral” rating in a report on Thursday. Bank of America boosted their target price on General Dynamics from $400.00 to $415.00 and gave the company a “buy” rating in a research note on Monday, July 6th. Finally, The Goldman Sachs Group dropped their price target on General Dynamics from $327.00 to $313.00 and set a “sell” rating on the stock in a research report on Monday, May 4th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, General Dynamics presently has an average rating of “Moderate Buy” and an average target price of $406.32.

Check Out Our Latest Stock Report on GD

General Dynamics Price Performance Shares of General Dynamics stock opened at $384.53 on Friday. The firm has a market capitalization of $104.04 billion, a PE ratio of 23.46, a price-to-earnings-growth ratio of 2.26 and a beta of 0.34. The company has a current ratio of 1.44, a quick ratio of 0.90 and a debt-to-equity ratio of 0.23. General Dynamics Corporation has a 12 month low of $306.03 and a 12 month high of $400.00. The business’s 50-day moving average price is $360.75 and its 200-day moving average price is $352.93.

General Dynamics (NYSE:GD – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The aerospace company reported $4.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.96 by $0.28. General Dynamics had a net margin of 8.18% and a return on equity of 17.43%. The business had revenue of $14.09 billion during the quarter, compared to analyst estimates of $13.52 billion. During the same period in the prior year, the business posted $3.74 earnings per share. The company’s revenue was up 8.1% on a year-over-year basis. General Dynamics has set its FY 2026 guidance at 16.800-16.900 EPS. Sell-side analysts forecast that General Dynamics Corporation will post 16.97 EPS for the current fiscal year.

General Dynamics Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Thursday, July 2nd will be paid a dividend of $1.59 per share. This represents a $6.36 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend is Thursday, July 2nd. General Dynamics’s dividend payout ratio is 38.80%.

General Dynamics Profile (Free Report)

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.

See Also Five stocks we like better than General Dynamics Chevron’s Strong Quarter Shows Why It Still Leads the Energy Sector Amazon’s Earnings Beat Shows Why AWS Is Back at the Center of the Bull Case Apple’s Record Quarter Could Not Outrun Its Guidance Problem McKesson’s Compounding Keeps Adding Up Want to see what other hedge funds are holding GD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for General Dynamics Corporation (NYSE:GD – Free Report).

Receive News & Ratings for General Dynamics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for General Dynamics and related companies with MarketBeat.com's FREE daily email newsletter.

Revenue $14.1 billion, up 8.1% versus prior year Diluted EPS $4.24, up 13.4% versus prior year $1.9 billion cash from operating activities, 162% of net earnings 1.4-to-1 book-to-bill, with strong order activity in all segments , /PRNewswire/ -- General Dynamics (NYSE: GD) today reported second-quarter 2026 operating earnings of $1.5 billion, and $4.24 per diluted share (EPS), on revenue of $14.1 billion. Compared with the year-ago quarter, revenue increased 8.1%, operating earnings increased 11.9%, and diluted EPS increased 13.4%. Operating margin of 10.4% was a 40-basis-point expansion from the year-ago quarter.

EXHIBIT H-1 "Our businesses delivered solid results in the quarter, with revenue growth across all four segments – including double-digit increases in revenue and noteworthy margin expansion in Aerospace and Marine Systems – reflecting our ongoing efforts to increase the pace of execution and deliver on our backlog," said Phebe Novakovic, chairman and chief executive officer. "We are well positioned to support our customers' needs and are continuing to make significant investments to increase output to meet strong and growing demand."

Cash and Capital Deployment

Net cash provided by operating activities in the quarter totaled $1.9 billion, or 162% of net earnings. During the quarter, the company paid $429 million in dividends, invested $234 million in capital expenditures, and reduced total debt by $498 million. The company ended the quarter with $7.5 billion in total debt and $4.3 billion in cash and equivalents on hand.

Orders and Backlog

Orders received in the quarter totaled $14.7 billion in the defense segments and $5.3 billion in the Aerospace segment, for a total of $20 billion. Book-to-bill ratio, defined as orders divided by revenue, was 1.4-to-1 for the quarter for the defense segments, 1.5-to-1 for the Aerospace segment, and 1.4-to-1 on a company-wide basis. 

Backlog at the end of the quarter was $136.5 billion. Estimated potential contract value, representing management's estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $50.4 billion. Total estimated contract value, the sum of backlog plus estimated potential contract value, was $186.9 billion.

About General Dynamics

Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 120,000 people worldwide and generated $52.6 billion in revenue in 2025. More information is available at www.gd.com.  

WEBCAST INFORMATION: General Dynamics' financial results conference call will be held on Wednesday, July 29, 2026, at 9:00 a.m. EDT.  A link to the live webcast will be available at www.gd.com and will be available for replay following the call. Corresponding presentation slides will be available for download prior to the call.

This press release may contain forward-looking statements (FLS), including statements about the company's future operational and financial performance, which are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "forecasts," "scheduled," "outlook," "estimates," "should" and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company's filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release may contain some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com.

EXHIBIT A

CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Three Months Ended

Variance

July 5, 2026

June 29, 2025

$

%

Revenue

$                     14,094

$                     13,041

$     1,053

8.1 %

Operating costs and expenses

(12,634)

(11,736)

(898)

Operating earnings

1,460

1,305

155

11.9 %

Other, net

(4)

15

(19)

Interest, net

(49)

(88)

39

Earnings before income tax

1,407

1,232

175

14.2 %

Provision for income tax, net

(247)

(218)

(29)

Net earnings

$                       1,160

$                       1,014

$        146

14.4 %

Earnings per share—basic

$                         4.29

$                         3.78

$       0.51

13.5 %

Basic weighted average shares outstanding

270.2

268.1

Earnings per share—diluted

$                         4.24

$                         3.74

$       0.50

13.4 %

Diluted weighted average shares outstanding

273.5

270.9

EXHIBIT B

CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Six Months Ended

Variance

July 5, 2026

June 29, 2025

$

%

Revenue

$                     27,575

$                     25,264

$     2,311

9.1 %

Operating costs and expenses

(24,695)

(22,691)

(2,004)

Operating earnings

2,880

2,573

307

11.9 %

Other, net

14

36

(22)

Interest, net

(118)

(177)

59

Earnings before income tax

2,776

2,432

344

14.1 %

Provision for income tax, net

(491)

(424)

(67)

Net earnings

$                       2,285

$                       2,008

$        277

13.8 %

Earnings per share—basic

$                         8.46

$                         7.48

$       0.98

13.1 %

Basic weighted average shares outstanding

270.2

268.6

Earnings per share—diluted

$                         8.35

$                         7.40

$       0.95

12.8 %

Diluted weighted average shares outstanding

273.8

271.3

EXHIBIT C

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

Three Months Ended

Variance

July 5, 2026

June 29, 2025

$

%

Revenue:

Aerospace

$                  3,525

$                   3,062

$            463

15.1 %

Marine Systems

4,660

4,220

440

10.4 %

Combat Systems

2,290

2,283

7

0.3 %

Technologies

3,619

3,476

143

4.1 %

Total

$                14,094

$                 13,041

$         1,053

8.1 %

Operating earnings:                                           

Aerospace

$                     510

$                      403

$            107

26.6 %

Marine Systems

342

291

51

17.5 %

Combat Systems

318

324

(6)

(1.9) %

Technologies

339

332

7

2.1 %

Corporate

(49)

(45)

(4)

(8.9) %

Total

$                  1,460

$                   1,305

$            155

11.9 %

Operating margin:

Aerospace

14.5 %

13.2 %

Marine Systems

7.3 %

6.9 %

Combat Systems

13.9 %

14.2 %

Technologies

9.4 %

9.6 %

Total

10.4 %

10.0 %

EXHIBIT D

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

Six Months Ended

Variance

July 5, 2026

June 29, 2025

$

%

Revenue:

Aerospace

$                  6,804

$                   6,088

$            716

11.8 %

Marine Systems

9,003

7,809

1,194

15.3 %

Combat Systems

4,573

4,459

114

2.6 %

Technologies

7,195

6,908

287

4.2 %

Total

$                27,575

$                 25,264

$         2,311

9.1 %

Operating earnings:                                          

Aerospace

$                  1,003

$                      835

$            168

20.1 %

Marine Systems

658

541

117

21.6 %

Combat Systems

628

615

13

2.1 %

Technologies

678

660

18

2.7 %

Corporate

(87)

(78)

(9)

(11.5) %

Total

$                  2,880

$                   2,573

$            307

11.9 %

Operating margin:

Aerospace

14.7 %

13.7 %

Marine Systems

7.3 %

6.9 %

Combat Systems

13.7 %

13.8 %

Technologies

9.4 %

9.6 %

Total

10.4 %

10.2 %

EXHIBIT E

CONSOLIDATED BALANCE SHEET

DOLLARS IN MILLIONS

(Unaudited)

July 5, 2026

December 31, 2025

ASSETS

Current assets:

Cash and equivalents

$                        4,333

$                        2,333

Accounts receivable

2,398

2,406

Unbilled receivables

9,255

8,380

Inventories

9,097

9,232

Other current assets

1,955

1,897

Total current assets

27,038

24,248

Noncurrent assets:

Property, plant and equipment, net

7,575

7,525

Intangible assets, net

1,281

1,375

Goodwill

20,927

21,009

Other assets

3,342

3,092

Total noncurrent assets

33,125

33,001

Total assets

$                      60,163

$                      57,249

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term debt and current portion of long-term debt                                                  

$                        1,256

$                        1,006

Accounts payable

2,874

2,678

Customer advances and deposits

11,034

9,824

Other current liabilities

3,601

3,288

Total current liabilities

18,765

16,796

Noncurrent liabilities:

Long-term debt

6,260

7,007

Other liabilities

8,312

7,824

Total noncurrent liabilities

14,572

14,831

Shareholders' equity:

Common stock

482

482

Surplus

4,535

4,403

Retained earnings

45,502

44,080

Treasury stock

(23,110)

(22,860)

Accumulated other comprehensive loss

(583)

(483)

Total shareholders' equity

26,826

25,622

Total liabilities and shareholders' equity

$                      60,163

$                      57,249

EXHIBIT F

CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)

DOLLARS IN MILLIONS

Six Months Ended

July 5, 2026

June 29, 2025

Cash flows from operating activities—continuing operations:

Net earnings

$                      2,285

$                      2,008

Adjustments to reconcile net earnings to net cash from operating activities:              

Depreciation of property, plant and equipment

348

325

Amortization of intangible and finance lease right-of-use assets

115

121

Equity-based compensation expense

107

89

Deferred income tax provision (benefit)

365

(98)

(Increase) decrease in assets, net of effects of business acquisitions:

Accounts receivable

8

(612)

Unbilled receivables

(846)

(200)

Inventories

135

(207)

Increase (decrease) in liabilities, net of effects of business acquisitions:

Accounts payable

196

(261)

Customer advances and deposits

1,168

106

Other, net

154

179

Net cash provided by operating activities

4,035

1,450

Cash flows from investing activities:

Capital expenditures

(437)

(340)

Other, net

13

124

Net cash used by investing activities

(424)

(216)

Cash flows from financing activities:

Dividends paid

(834)

(785)

Repayment of fixed-rate notes

(500)

(1,500)

Purchases of common stock

(319)

(600)

Proceeds from commercial paper, net

—

696

Proceeds from fixed-rate notes

—

747

Other, net

48

39

Net cash used by financing activities

(1,605)

(1,403)

Net cash used by discontinued operations

(6)

(5)

Net increase (decrease) in cash and equivalents

2,000

(174)

Cash and equivalents at beginning of period

2,333

1,697

Cash and equivalents at end of period

$                      4,333

$                      1,523

EXHIBIT G

ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Non-GAAP Financial Measures:

Second Quarter

Six Months

2026

2025

2026

2025

Free cash flow:

Net cash provided by operating activities 

$                       1,880

$                  1,598

$                    4,035

$                    1,450

Capital expenditures

(234)

(198)

(437)

(340)

Free cash flow (a)

$                       1,646

$                  1,400

$                    3,598

$                    1,110

July 5, 2026

December 31, 2025

Net debt:

Total debt

$                       7,516

$                  8,013

Less cash and equivalents

4,333

2,333

Net debt (b)

$                       3,183

$                  5,680

Supplemental Aerospace Data:

Second Quarter

Six Months

2026

2025

2026

2025

Gulfstream Aircraft Deliveries (units):

Large-cabin aircraft

35

32

66

62

Mid-cabin aircraft

6

6

13

12

Total

41

38

79

74

Aerospace Book-to-Bill:

Orders (c)

$                       5,278

$                  4,003

$                    9,121

$                    6,364

Revenue

3,525

3,062

6,804

6,088

Book-to-Bill Ratio

1.5x

1.3x

1.3x

1.0x

(a)  

We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure

for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business

acquisitions, paying dividends and repurchasing our common stock to cover dilution. We use free cash flow to assess the quality of our

earnings and as a key performance measure in evaluating management.

(b)

We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for

investors because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an

important indicator of liquidity and financial position.

(c)

Excludes customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.

EXHIBIT H

BACKLOG - (UNAUDITED)

DOLLARS IN MILLIONS

Funded

Unfunded

Total

Backlog

Estimated

Potential

Contract Value*

Total

Estimated

Contract Value

Second Quarter 2026:                         

Aerospace

$            22,992

$                 985

$            23,977

$                     1,170

$               25,147

Marine Systems

42,356

22,826

65,182

7,442

72,624

Combat Systems

27,507

1,843

29,350

10,847

40,197

Technologies

11,256

6,733

17,989

30,945

48,934

Total

$          104,111

$            32,387

$          136,498

$                   50,404

$             186,902

First Quarter 2026:

Aerospace

$            21,172

$              1,095

$            22,267

$                     1,040

$               23,307

Marine Systems

40,598

23,373

63,971

12,519

76,490

Combat Systems

25,532

1,383

26,915

11,770

38,685

Technologies

10,818

6,869

17,687

32,272

49,959

Total

$            98,120

$            32,720

$          130,840

$                   57,601

$             188,441

Second Quarter 2025:      

Aerospace

$            18,676

$              1,227

$            19,903

$                     1,165

$               21,068

Marine Systems

39,298

13,674

52,972

14,708

67,680

Combat Systems

15,961

616

16,577

9,592

26,169

Technologies

9,945

4,285

14,230

32,011

46,241

Total

$            83,880

$            19,802

$          103,682

$                   57,476

$             161,158

*   

The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and

unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase

new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order.

For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract

value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.

EXHIBIT H-1

BACKLOG - (UNAUDITED)

DOLLARS IN MILLIONS

https://mmx.prnewswire.com/media/MS1959817/GD-Q2.jpg?id=OA2797589

SOURCE General Dynamics

Key Takeaways General Dynamics entered Q2 with a record backlog supporting revenue visibility across its businesses.GD's Marine Systems may benefit from improving productivity and supplier performance on submarine programs.Gulfstream is expected to post solid aircraft deliveries after a record first-quarter delivery performance. General Dynamics (GD - Free Report) is scheduled to release second-quarter 2026 results on July 29, before market open. The company delivered an earnings surprise of 11.4% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Key Factors Likely to Influence GD’s Q2 ResultsGeneral Dynamics heads into second-quarter earnings season with a record backlog and healthy book-to-bill ratios across its business segments, supporting strong revenue visibility despite macroeconomic uncertainty. The company's defense operations are expected to have remained the primary growth driver, benefiting from sustained demand for submarines, combat vehicles, munitions and mission systems amid rising global defense spending.

Marine Systems is likely to have been one of the biggest catalysts for the second quarter. Management highlighted improving labor productivity across its shipyards, stronger material availability and steadily improving supplier performance, all of which might have supported higher throughput on the Columbia- and Virginia-class submarine programs. The company continues to invest aggressively in expanding shipyard capacity to meet growing U.S. naval demand. If these operational improvements continued through the second quarter, Marine Systems could have been a major contributor to revenue and margin expansion.

Gulfstream entered the second quarter after recording the strongest first-quarter delivery performance in its history, while management emphasized durable manufacturing improvements across the G700 and G800 programs. Management expects second-quarter aircraft deliveries to remain similar to the first quarter before rising further in the second half of the year, indicating another solid quarter for the segment.

Although management said supply-chain conditions have improved, critical components sourced from single suppliers continue to constrain production. Any renewed disruptions could slow the pace of submarine construction and limit further throughput improvements despite robust customer demand.

GD’s Q2 ExpectationsThe Zacks Consensus Estimate for earnings is pegged at $3.95 per share, indicating a year-over-year increase of 5.6%.

The Zacks Consensus Estimate for revenues is pinned at $13.49 billion, implying a year-over-year improvement of 3.4%.

The Zacks Consensus Estimate for total Gulfstream aircraft deliveries is pinned at 42, compared with the company’s registered figure of 38 in the year-ago quarter.

What the Zacks Model UnveilsOur proven model predicts an earnings beat for General Dynamics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
 

Other Stocks to ConsiderInvestors may also consider the following players from the same sector as these, too, have the right combination of elements to post an earnings beat this reporting cycle.

Hexcel (HXL - Free Report) is likely to come up with an earnings beat when it announces second-quarter results on July 29, before market open. It has an Earnings ESP of +6.13% and a Zacks Rank #3 at present.

The consensus estimate for HXL’s second-quarter sales suggests an improvement of 6.5% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 12.6% for the trailing four quarters.

L3Harris Technologies (LHX - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on July 29, after market close. It has an Earnings ESP of +2.09% and a Zacks Rank #3 at present.

The consensus estimate for LHX’s second-quarter sales implies an improvement of 6.8% from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pinned at $2.80 per share, indicating year-over-year growth of 0.7%.

Curtiss-Wright (CW - Free Report) is likely to come up with an earnings beat when it announces second-quarter results on Aug. 5, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank #3 at present.

The consensus estimate for CW’s second-quarter sales suggests an improvement of 6.2% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 3.8% for the trailing four quarters.

General Dynamics (GD - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis defense contractor is expected to post quarterly earnings of $3.95 per share in its upcoming report, which represents a year-over-year change of +5.6%.

Revenues are expected to be $13.49 billion, up 3.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.09% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for General Dynamics?For General Dynamics, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.61%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that General Dynamics will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that General Dynamics would post earnings of $3.68 per share when it actually produced earnings of $4.10, delivering a surprise of +11.41%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

General Dynamics appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Aerospace - Defense industry, Boeing (BA - Free Report) , is soon expected to post loss of $0.34 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +72.6%. This quarter's revenue is expected to be $24.05 billion, up 5.7% from the year-ago quarter.

The consensus EPS estimate for Boeing has been revised 457.3% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -17.41%.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Boeing will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Key Takeaways General Dynamics is expanding its submarine role through Electric Boat's U.S. Navy work.Electric Boat builds Virginia-class submarines and leads the Columbia-class replacement program.GD benefits from rising undersea warfare demand, naval modernization and a strong backlog. General Dynamics (GD - Free Report) continues to strengthen its position in the global submarine market through its Electric Boat business, one of the leading designers, builders and sustainment providers of nuclear-powered submarines for the U.S. Navy. The business plays a critical role in supporting the Navy's undersea warfare capabilities by developing advanced submarine platforms equipped with enhanced stealth, survivability and mission effectiveness.

Electric Boat is responsible for the design, engineering and construction of the Virginia-class fast-attack submarines and serves as the prime contractor for the Columbia-class ballistic missile submarines, which are expected to replace the aging Ohio-class fleet and form the backbone of the United States' sea-based nuclear deterrent. The company also provides lifecycle support, modernization and engineering services to help ensure the long-term operational readiness of these strategic assets.

Growing geopolitical tensions, increasing naval modernization efforts and rising investments in undersea warfare capabilities are driving strong demand for advanced submarines worldwide. Modern submarines are increasingly being equipped with improved stealth technologies, long-range strike capabilities, advanced sonar systems and unmanned underwater vehicle integration, making them a critical component of modern naval defense strategies.

General Dynamics is well-positioned to benefit from these long-term trends through its deep expertise in submarine design, engineering and production, supported by decades of experience and a strong backlog of naval programs. The company's continued investments in advanced manufacturing, digital engineering and workforce expansion further reinforce its ability to support future submarine demand.

Submarine Stocks to Keep on the RadarOther aerospace and defense companies strengthening their presence in the submarine market are discussed below:

Huntington Ingalls Industries (HII - Free Report) : Through its Newport News Shipbuilding division, HII is a key builder of the U.S. Navy's Virginia-class attack submarines and Columbia-class ballistic missile submarines. The company also provides maintenance, modernization and lifecycle sustainment services that support fleet readiness.

BAE Systems (BAESY - Free Report) : The company is a leading participant in the United Kingdom's submarine programs and is the prime contractor for the Royal Navy's Astute-class nuclear-powered attack submarines. It also contributes to the next-generation Dreadnought-class ballistic missile submarine program.

The Zacks Rundown for GDShares of GD have risen 23.5% in the past year compared with the industry’s 8.3% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.75X compared with its industry’s average of 2.66X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GD’s 2026 and 2027 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research

Key Takeaways General Dynamics is expanding its C5ISR presence through advanced defense tech and systems integration.GDIT supports U.S. Navy C5ISR upgrades with integration, engineering, logistics and installation.GD shares are up 18.6% in the past year and trade below the industry on forward 12-month Price/Sales. General Dynamics (GD - Free Report) continues to strengthen its position in the Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance and Reconnaissance (C5ISR) market through its advanced defense technology and systems integration capabilities. The company's General Dynamics Information Technology (GDIT) business develops mission-critical solutions that help military customers enhance situational awareness, improve decision-making and support multi-domain operations across increasingly complex battlefield environments.

A key example is GDIT's role in modernizing and integrating advanced C5ISR systems for the U.S. Navy. The company provides end-to-end support services, including systems integration, engineering, procurement, logistics and installation, to enhance secure communications, information sharing and mission effectiveness across naval operations.

GDIT's C5ISR capabilities support a wide range of platforms, including guided missile destroyers, aircraft carriers, Coast Guard vessels, manned and unmanned aircraft, as well as shore-based facilities. These integrated solutions help improve operational readiness, strengthen command and control capabilities and enable seamless upgrades to existing defense platforms without disrupting ongoing missions.

With defense agencies worldwide increasingly investing in integrated, network-centric warfare capabilities, demand for advanced C5ISR solutions is expected to remain strong. General Dynamics' continued investments in systems integration, cybersecurity and mission-critical technologies position it well to benefit from long-term defense modernization trends and the growing need for resilient, connected military networks

Other Stocks to Keep on the WatchlistOther aerospace and defense companies expanding their C5ISR capabilities are discussed below:

BAE Systems (BAESY - Free Report) : The company provides C5ISR solutions, including systems engineering, integration, sustainment services and enterprise IT. Its technologies support military operations across land, air, sea and cyber domains, improving mission effectiveness.

Kratos Defense & Security Solutions (KTOS - Free Report) : The company delivers advanced C5ISR solutions, specializing in the integration of mission-critical electronic systems. Its technologies enhance secure communications, intelligence gathering and battlefield connectivity for defense customers.

The Zacks Rundown for GDShares of GD have risen 18.6% in the past year compared with the industry’s 1.3% growth.

Image Source: Zacks Investment Research

The company shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 1.66X compared with its industry’s average of 2.59X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GD’s 2026 and 2027 earnings has moved north over the past 60 days.

Image Source: Zacks Investment Research