A strong stock as of late has been General Dynamics (GD - Free Report) . Shares have been marching higher, with the stock up 10.8% over the past month. The stock hit a new 52-week high of $387.69 in the previous session. General Dynamics has gained 13.4% since the start of the year compared to the 1.9% move for the Zacks Aerospace sector and the 0.4% return for the Zacks Aerospace - Defense industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 29, 2026, General Dynamics reported EPS of $4.1 versus consensus estimate of $3.68.
For the current fiscal year, General Dynamics is expected to post earnings of $16.66 per share on $55.16 in revenues. This represents a 7.76% change in EPS on a 4.97% change in revenues. For the next fiscal year, the company is expected to earn $18.32 per share on $57.63 in revenues. This represents a year-over-year change of 9.98% and 4.46%, respectively.
Valuation MetricsThough General Dynamics has recently hit a 52-week high, what is next for General Dynamics? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
General Dynamics has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 22.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.9X. On a trailing cash flow basis, the stock currently trades at 20.1X versus its peer group's average of 15.5X. Additionally, the stock has a PEG ratio of 2.3. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, General Dynamics currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if General Dynamics meets the list of requirements. Thus, it seems as though General Dynamics shares could have potential in the weeks and months to come.
General Dynamics očekává výsledky za 2. čtvrtletí; trh vyhlíží zisk 3,95 USD na akcii a tržby 13,49 miliardy USD. Podporou má být rekordní backlog a silné dodávky Gulfstreamu.
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 má podle článku lepší cenu, silnější růst zisku a nižší zadlužení než Lockheed Martin. Firma navíc po 1. čtvrtletí 2026 vykázala backlog 130,84 mld. USD.
Key Takeaways LMT is expanding missile, fighter and munitions programs with a $186.4B backlog supporting growth.General Dynamics ended Q1 2026 with a $130.84B backlog and $188.44B in estimated contract value.GD and LMT differ on valuation, debt, earnings estimate revisions and recent share performance. Lockheed Martin (LMT - Free Report) and General Dynamics (GD - Free Report) derive a significant portion of their revenues from the U.S. Department of Defense and play critical roles in supporting national security through the development of advanced military platforms, combat systems, naval vessels, aerospace technologies and mission-critical services. Their long-standing relationships with the Pentagon, combined with large contract backlogs and exposure to rising global defense spending, make them natural peers for investors evaluating opportunities in the defense sector.
Both companies are positioned to benefit from long-term trends supporting defense spending. Heightened geopolitical tensions, military modernization efforts, growing demand for missile defense systems, increased naval investment and rising defense budgets among NATO allies and Indo-Pacific nations are driving sustained demand for advanced defense technologies. Since governments typically commit to multi-year procurement programs, both Lockheed Martin and General Dynamics enjoy relatively predictable revenue streams supported by long-term contracts and sizeable order backlogs.
Let's compare the two stocks' fundamentals to determine which one is better positioned at present.
Factors Acting in Favor of LMT StockLockheed Martin continues to convert demand for key franchise programs into sizable awards, supporting revenue visibility over a multiyear horizon. In the first quarter of 2026, Missiles and Fire Control was awarded $7 billion of PAC-3 contracts, including a fully funded $4.8 billion undefinitized contract, and the company also secured long-lead materials for F-35 Lots 20 and 21. These order flows, together with continued activity across strategic missile, combat systems and sustainment work, underpin a backlog of $186.4 billion as of March 29, 2026.
Management indicated that the current U.S. budget rollout reflects priorities such as accelerating munitions production, strengthening integrated air and missile defense, advancing next-generation aircraft and expanding space capabilities. These areas align closely with the company’s core platforms across PAC-3, THAAD and PrSM, as well as fighter and strategic programs. LMT has also signed multiyear framework agreements with the Department of War to scale munitions production and is planning investments across more than 20 new or modernized facilities, which can improve capacity planning and reduce supply-chain bottlenecks over time.
Factors Acting in Favor of GD StockGeneral Dynamics’ solid number of award wins and a strong global presence will help maintain a steady growth momentum. At the end of the first quarter of 2026, the company witnessed a solid backlog of $130.84 billion, driven by a strong order inflow. The estimated contract value, which combines the total backlog with the potential contract value, totaled $188.44 billion at the end of the first quarter of 2026. The strength of the order flow was driven by strong demand across the company’s product and services portfolio.
Significant awards won by General Dynamics in the last reported quarter included a $15.4 billion contract for continued design and support work on the Columbia-class submarines program. Such impressive order trends and strong backlog count indicate solid demand for the company’s products, thereby bolstering its revenue generation prospects significantly.
How Does the Zacks Consensus Estimate Compare for LMT & GD?The Zacks Consensus Estimate for Lockheed Martin’s 2026 earnings per share (EPS) indicates an increase of 0.03% over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for General Dynamics’ 2026 EPS indicates an increase of 0.12% over the past 60 days.
Image Source: Zacks Investment Research
Valuation for LMT & GDLockheed Martin shares trade at a forward 12-month Price/Sales (P/S F12M) of 1.44X compared with General Dynamics’ 1.76X.
LMT & GD’s Debt PositionCurrently, Lockheed Martin and General Dynamics’ total debt to capital is 73.43% and 23.51%, respectively.
Image Source: Zacks Investment Research
LMT & GD’s Price PerformanceIn the past three months, shares of General Dynamics have increased 15.4%, while those of Lockheed Martin have declined 4.3%, compared with the industry’s growth of 1%.
Image Source: Zacks Investment Research
LMT or GD: Which is a Better Choice Now?Lockheed Martin continues to secure major defense contracts across its core missile, fighter aircraft and sustainment programs. LMT is also well-positioned to benefit from U.S. defense priorities focused on expanding munitions production, strengthening missile defense and advancing next-generation aircraft. General Dynamics continues to benefit from strong demand across its defense portfolio, with robust contract wins supporting a large backlog and providing solid long-term revenue visibility. Recent major program awards, particularly in naval defense, highlight the company's strong market position and reinforce its growth prospects as it executes on long-term government contracts.
Our choice at the moment is General Dynamics, given its better price performance, strong earnings growth and better debt position than Lockheed Martin. GD carries a Zacks Rank #2 (Buy) and LMT has a Zacks Rank #3 (Hold) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Dynamics čeká za čtvrtletí zisk 3,95 USD na akcii, meziročně o 5,6 % více, při tržbách 13,49 mld. USD. Analytici mu dávají EPS ESP +1,61 % a Zacks Rank #2, což naznačuje překonání odhadů.
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.
General Dynamics získala čtyřletý kanadský kontrakt za zhruba 1,4 miliardy USD na dodávku 190 Armored Combat Support Vehicles. Tím posiluje pozici na trhu obrněných vozidel.
Key Takeaways GD won a four-year, $1.4 billion Canadian contract to supply 190 Armored Combat Support Vehicles.Its LAV family combines mobility, survivability and mission versatility for combat and reconnaissance.Rising defense budgets and fleet modernization are driving demand for GD's next-generation vehicles. General Dynamics (GD - Free Report) continues to strengthen its position in the armored vehicle market through its portfolio of advanced land combat platforms and decades of expertise in military ground systems. The company develops and manufactures wheeled and tracked combat vehicles that support modern battlefield operations for the U.S. military, Canada and allied nations.
A key example is GD's Light Armored Vehicle (LAV) family, designed to deliver high mobility, survivability and mission versatility across combat and reconnaissance missions while providing enhanced troop protection.
GD recently expanded its presence in the market through its Canadian subsidiary, which secured a four-year contract worth approximately $1.4 billion (C$2 billion) from the Government of Canada to supply 190 Armored Combat Support Vehicles (ACSVs). The award reinforces the company's long-standing relationship with the Canadian Armed Forces and reflects continued demand for its armored vehicle platforms.
Beyond the LAV and ACSV programs, GD also offers the Stryker combat vehicle and the Abrams main battle tank. Its broad portfolio and manufacturing expertise position the company to benefit as defense forces continue to modernize aging armored fleet.
Rising geopolitical tensions, increasing defense budgets and ongoing military modernization programs are driving demand for next-generation armored combat vehicles worldwide. As armed forces prioritize highly mobile and survivable platforms, GD is well-positioned to benefit from long-term growth in the global armored vehicle market.
Other Armored Vehicle Stocks to WatchOther aerospace and defense companies strengthening their presence in the armored vehicle market are discussed below:
BAE Systems (BAESY - Free Report) : BAE Systems manufactures a broad portfolio of armored combat vehicles, including the Armored Multi-Purpose Vehicle (AMPV), Bradley Fighting Vehicle, M109 self-propelled howitzer and M88 recovery vehicle. The company's expertise in combat vehicle design, production and modernization supports growing demand from the U.S. military and allied nations.
Textron (TXT - Free Report) : Textron designs, manufactures and supports a wide range of armored combat vehicles for military, law enforcement and special operations customers worldwide. Its COMMANDO family of vehicles combines mobility, survivability and mission flexibility to support a broad range of tactical operations.
The Zacks Rundown for GDShares of GD have risen 24.9% in the past year against the industry’s 3.3% decline.
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 1.77X compared with its industry’s average of 2.49X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GD’s 2026 and 2027 earnings has moved north over the past 60 days.
General Dynamics posiluje v oblasti ponorek prostřednictvím Electric Boat, která staví třídu Virginia a je hlavním dodavatelem programu Columbia pro americké námořnictvo. Firma těží z rostoucí poptávky po podmořském boji a modernizaci flotil.
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.
General Dynamics v 1. čtvrtletí překonal odhady díky ponorkám a Gulfstreamům, když EPS dosáhl 4,10 USD na akcii a tržby 13,48 miliardy USD. Lockheed Martin naopak zklamal, když EPS 6,44 USD na akcii zaostal za konsensem 6,70 USD při slabém cash flow a nových nákladech na programy.
General Dynamics (NYSE:GD | GD Price Prediction) and Lockheed Martin (NYSE:LMT) reported Q1 2026 results pulling the two defense giants in opposite directions. General Dynamics beat on submarines and Gulfstream jets. Lockheed leaned on a record backlog to explain a messy quarter marked by fresh program charges and a cash flow reversal.
Submarines Carry GD. Program Charges Weigh On Lockheed. General Dynamics posted EPS of $4.10 on revenue of $13.48 billion, with Marine Systems growing 21.0% and operating earnings there up 26.4%. Gulfstream delivered 38 aircraft versus 36 a year earlier, and Aerospace orders jumped 63%. CEO Phebe Novakovic said the businesses delivered “strong operating results and excellent cash conversion.” Operating cash flow hit $2.155 billion, a swing from negative territory a year ago.
Lockheed told a different story. EPS of $6.44 missed consensus of $6.70, revenue rose just 0.3%, and free cash flow went negative $291 million. A $125 million unfavorable F-16 adjustment plus hits on C-130, CH-53K, and Seahawk compressed segment margins to 10.1% from 11.6%. That is the second painful quarter in a year, following $1.6 billion in charges in Q2 2025.
A Deep Marine Moat Versus a Concentrated Fighter Bet General Dynamics compounds a two-submarines-per-year cadence with commercial jets and defense IT, giving it a diversified earnings base tied to both long-term government and commercial demand. Total estimated contract value climbed to $188.44 billion, and consolidated book-to-bill ran 2-to-1.
Lockheed’s backlog is bigger at $194 billion, but heavier in fixed-price aeronautics work where losses keep resurfacing. New framework agreements for Patriot, THAAD, and PrSM should eventually lift production rates 3-4x, according to Jim Taiclet, yet near-term earnings look wobbly.
Lens GD LMT Core Bet Nuclear submarines + Gulfstream F-35 and missile framework deals Q1 Free Cash Flow $1.952B -$291M Forward P/E 21x 17x The Next Test Is Execution Watch whether Lockheed closes F-16 issues and stabilizes CH-53K without another reach-forward loss. Guidance calling for $6.5B to $6.8B in 2026 free cash flow assumes a sharp back-half recovery. For General Dynamics, signals are Gulfstream deliveries, further Virginia-class submarine funding tied to the FY2027 shipbuilding budget of $65.8 billion, and whether Technologies margins can stop drifting from 9.5%.
Why I Lean Toward General Dynamics on This Earnings Report General Dynamics looks like the cleaner defense holding. Cash conversion at 192% of net earnings, four straight EPS beats, and a submarine franchise with visible funding give it real downside protection. Lockheed’s $194B backlog and geopolitical tailwinds could reward patient turnaround investors, and Jefferies’ $400 target on GD shows the Street is warming up. For a defensive compounder profile, General Dynamics screens cleaner. For investors focused on fixed-price program noise in a rerating story, Lockheed still has a case.
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General Dynamics posiluje C5ISR prostřednictvím integrace systémů a technologií pro americké námořnictvo. GDIT zajišťuje modernizaci včetně inženýringu, nákupu, logistiky a instalace.
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.
Key Takeaways RTX and GD benefit from rising defense budgets, geopolitical tensions and strong order backlogs.RTX invested $163 million to expand aerospace MRO services and defense production capacity.RTX tops GD in 2026 growth estimates, one-year stock gains and earnings surprise history. Growing defense budgets and rising geopolitical tensions continue to create opportunities across the aerospace and defense industry, benefiting companies like RTX Corporation (RTX - Free Report) and General Dynamics (GD - Free Report) . Both companies have strong order backlogs that provide revenue visibility and support their long-term growth prospects.
RTX has a diversified business that includes commercial aerospace and defense operations. The company is benefiting from strong demand for its Pratt & Whitney aircraft engines and Collins Aerospace systems as global air travel continues to recover. Its defense business is also supported by demand for missile systems, radar technologies and other advanced military solutions.
General Dynamics is a leading defense contractor with operations across aerospace, marine systems, combat systems and technologies. The company benefits from demand for its Gulfstream business jets, military vehicles, naval platforms and technology solutions. Its broad exposure to U.S. defense programs and long-term government contracts supports steady business growth.
As global defense spending continues to rise and military modernization remains a priority for many countries, both RTX and General Dynamics are well-positioned to benefit from these trends. However, a closer comparison of their financial performance and growth outlook can help determine which stock currently offers the stronger investment opportunity.
Tailwinds for RTXRTX continues to strengthen its business through investments that expand its aerospace and defense capabilities. In June 2026, its Collins Aerospace unit announced a $63 million investment to expand its maintenance, repair and overhaul (MRO) facility in Malaysia. The larger facility will help RTX support the region's growing aircraft fleet and rising demand for maintenance services.
The company is also increasing its defense production capacity. Earlier in the month, RTX announced a $100 million investment to expand its facility in Portsmouth, RI. The expansion will support higher production of Patriot GEM-T subcomponents and increase testing capacity for the Lower Tier Air and Missile Defense Sensor, helping the company meet growing demand for air and missile defense systems.
These investments reflect RTX's focus on expanding its aerospace services and defense operations, which should support its long-term growth prospects.
Tailwinds for GDGeneral Dynamics continues to win new contracts across its defense and technology businesses, reflecting solid demand from the United States and international customers. Significant awards won by GD in the last reported quarter included a $15.4 billion contract for continued design and support work on the Columbia-class submarines program.
In the fourth quarter of 2025, the company received two contracts for more than $4 billion for its EAGLE tactical vehicles from Germany. The company also received contracts worth $600 million for its bridges from Norway and the United Kingdom. Moreover, the company received a contract worth $640 million for its light armored vehicles and additional logistics vehicles from Canada.
Proposed increases in U.S. defense spending may further support growth, especially for its Marine Systems unit.
How Does the Zacks Consensus Estimate Compare for RTX & GD?The Zacks Consensus Estimate for RTX’s 2026 sales and earnings per share (EPS) implies an improvement of 5.7% and 9.9%, respectively, from the year-ago quarter’s reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.
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The Zacks Consensus Estimate for GD’s 2026 sales and earnings per share (EPS) implies an improvement of 4.7% and 7.2%, respectively, from the year-ago quarter’s reported figures. The stock’s annual bottom-line estimates have moved north over the past 60 days.
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Stock Price Performance: RTX & GDIn the past year, RTX has outperformed GD. While RTX’s shares surged 28.2%, GD surged 22.2%.
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Valuation for RTX & GDGD is trading at a forward sales multiple (P/E F12M) of 1.66, below RTX’s forward sales multiple of 2.53.
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Surprise HistoryRTX delivered an average earnings surprise of 12.65% in the last four quarters, while GD delivered an average earnings surprise of 5.27% in the last four quarters.
Final CallBoth RTX and General Dynamics are well-positioned to benefit from rising global defense spending and ongoing military modernization efforts. GD continues to secure major defense contracts and offers exposure to naval platforms, combat systems and business jets.
RTX, however, appears to have a slight edge. The company benefits from a balanced mix of commercial aerospace and defense businesses, providing multiple growth drivers. Its earnings and revenue growth expectations for 2026 are stronger than GD's, and the company has recently announced strategic investments to expand both its aerospace services and defense production capabilities.
RTX has also delivered stronger stock price performance over the past year and a better earnings surprise track record than General Dynamics, reflecting solid execution across its businesses.
Both RTX and GD currently carry a Zacks Rank #3 (Hold). However, considering RTX's stronger growth outlook, recent investments and better share price performance, it stands out as the more attractive choice right now.
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
