General Dynamics Corporation GD reported third-quarter 2026 earnings of $4.49 per share, which beat the Zacks Consensus Estimate of $4.14 by 8.5%. The bottom line increased 15.7% from $3.88 in the year-ago quarter, reflecting higher operating earnings and lower net interest expenses.
Total Revenues of GD
Revenues of $14.57 billion surpassed the consensus mark of $13.69 billion by 6.4% and rose 12.9% year over year. Growth across all four segments, led by Marine Systems, supported the top line. The company's total backlog reached $220.34 billion, increasing 100.6% year over year.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote
GD’s Segmental Performance
Aerospace revenues increased 9.3% year over year to $3.54 billion. Operating earnings surged 19.3% to $513 million. The segment's operating margin expanded 120 basis points (bps) to 14.5%, reflecting improved operational performance.
Marine Systems revenues advanced 21.1% year over year to $4.96 billion, driven by higher business volume across all shipyards. Operating earnings jumped 34.4% to $391 million from $291 million in the prior-year quarter. The segment's operating margin expanded 80 bps to 7.9%, supported by improved operational performance.
Combat Systems revenues increased 6% year over year to $2.39 billion. However, operating earnings declined 1.5% to $330 million from $335 million in the prior-year quarter. The segment's operating margin contracted 110 bps to 13.8%, indicating that higher revenues did not translate into improved profitability.
Technologies revenues rose 10.8% year over year to $3.68 billion. Operating earnings improved 5.8% to $346 million from $327 million a year ago. However, the operating margin declined 40 bps to 9.4%, reflecting slower earnings growth relative to revenues.
Operational Highlights of GD
Operating earnings totaled $1.53 billion, up 14.7% from the year-ago quarter's $1.33 billion. The operating margin expanded 20 bps to 10.5%.
Operating costs and expenses increased 12.6% year over year to $13.04 billion. Net interest expenses declined to $45 million from $74 million in the prior-year quarter.
Net earnings rose 16.1% to $1.23 billion from $1.06 billion a year ago, reflecting improved overall profitability.
Financial Condition of GD
As of Oct. 4, 2026, cash and cash equivalents totaled $4.39 billion compared with $2.33 billion as of Dec. 31, 2025.
Long-term debt totaled $6.26 billion, down from $7.01 billion as of 2025-end. Total debt was $7.02 billion, while net debt amounted to $2.63 billion.
During the first nine months of 2026, cash generated by operating activities totaled $5.75 billion compared with $3.56 billion in the year-ago period. Free cash flow increased to $4.83 billion from $3.01 billion.
During the third quarter, General Dynamics paid $429 million in dividends, invested $481 million in capital expenditures and reduced total debt by $500 million.
GD’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Release
The Boeing Company BA incurred an adjusted loss of 34 cents per share in the third quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 21 cents. The reported figure improved from the year-ago quarter’s reported loss of $7.47 per share.
BA’s revenues amounted to $24.19 billion, which marginally missed the Zacks Consensus Estimate of $24.28 billion by 0.4%. However, the top line increased 3.9% from the year-ago quarter’s reported figure of $23.27 billion.
Lockheed Martin Corporation LMT reported third-quarter 2026 adjusted earnings of $7.97 per share, which beat the Zacks Consensus Estimate of $7.49 by 6.4%. The bottom line increased 14.7% from the year-ago quarter's figure of $6.95.
LMT’s net sales were $20.71 billion, which beat the Zacks Consensus Estimate of $20.44 billion by 1.4%. The top line inched up 11.3% from $18.61 billion reported in the year-ago quarter.
Northrop Grumman Corporation NOC reported third-quarter 2026 adjusted earnings of $7.89 per share, which beat the Zacks Consensus Estimate of $7.22 by 9.3%. The bottom line also increased 2.9% from the year-ago quarter’s level of $7.67.
NOC’s total sales of $11.12 billion beat the Zacks Consensus Estimate of $11.06 billion by 0.6%. The top line improved 6.7% from $10.42 billion reported in the year-ago quarter.
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General Dynamics Corporation (GD): Free Stock Analysis Report
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