General Dynamics (GD)
NYSE:GD
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General Dynamics
(NYSE:GD)
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Rating:76Outperform
Price Target:
$383.00
▲(13.89% Upside)
Action:ReiteratedDate:04/30/26
Overall score is driven primarily by strong fundamentals (notably improved free cash flow and manageable/improving leverage) and a highly positive earnings call with raised guidance and a sharply larger backlog. The score is tempered by mixed technical signals (negative MACD and trading below key moving averages) and a valuation that is reasonable but not clearly discounted.
Positive Factors
Record backlog & orders
A very large, rapidly growing backlog and elevated book-to-bill provide multi-year revenue visibility across programs. This underpins predictable production schedules, supports long-run cash conversion and reduces near-term demand risk for core defense platforms and services.
Negative Factors
Single‑source supplier risk
Dependence on single-source suppliers for complex parts creates persistent production bottlenecks, raises schedule and cost risk across long-duration programs, and can compress margins. These supplier constraints are structural until qualified alternatives or vertical fixes are implemented.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog & orders
A very large, rapidly growing backlog and elevated book-to-bill provide multi-year revenue visibility across programs. This underpins predictable production schedules, supports long-run cash conversion and reduces near-term demand risk for core defense platforms and services.
Read all positive factors
General Dynamics (GD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$91.74B
Dividend Yield1.73%
Average Volume (3M)1.29M
Price to Earnings (P/E)21.6
Beta (1Y)0.51
Revenue Growth10.13%
EPS Growth13.27%
CountryUS
Employees110,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)4.10
Shares Outstanding270,845,860
10 Day Avg. Volume1,293,428
30 Day Avg. Volume1,285,555
Financial Highlights & Ratios
PEG Ratio1.63
Price to Book (P/B)3.55
Price to Sales (P/S)1.73
P/FCF Ratio22.95
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue1.79
Enterprise Value/Gross Profit12.85
Enterprise Value/Ebitda15.36
Forecast
1Y Price Target
$395.27Price Target Upside17.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)16.29
Revenue Forecast (FY)$54.82B
General Dynamics Business Overview & Revenue Model
Company Description
General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment designs, manufactures, and sells business je...
How the Company Makes Money
General Dynamics primarily makes money by selling products and services under contracts—most notably with the U.S. Department of Defense and other U.S. government agencies, allied governments via foreign military sales frameworks, and commercial c...
General Dynamics Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across different business units, revealing which areas contribute most to the company's top line and indicating growth opportunities or potential vulnerabilities.
Breaks down sales across different business units, revealing which areas contribute most to the company's top line and indicating growth opportunities or potential vulnerabilities.
Data provided by:
The Fly
The FlyGeneral Dynamics Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial quarter: double-digit revenue and earnings growth, an earnings beat, exceptional cash generation, robust order intake and a materially larger backlog, plus an upward EPS guidance revision. Challenges noted are mostly execution- and timing-related (supply-chain single-source risks, regional order slowdowns tied to the Middle East conflict, and 2026 note maturities), but management described clear mitigation actions and ongoing investments. On balance, the positives—scaleable backlog, strong cash flow, margin expansion in key areas and raised guidance—outweigh the manageable risks cited.Positive Updates
Strong Quarterly Financial Results
Reported EPS $4.10, revenue $13.5B, operating earnings $1.420B and net earnings $1.125B. Year-over-year revenue +10.3%, operating earnings +12%, net earnings +13.2%, and EPS up $0.44 (12%). Company beat consensus EPS by $0.43.
Negative Updates
Regional Order Slowdown and Supply Risk from Middle East Conflict
Aerospace order intake slowed late in the quarter due to the Middle East conflict; management flagged potential supply impacts (labor-related) for components sourced from the region (e.g., possible minor impacts to G280 deliveries if conflict persists).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Financial Results
Reported EPS $4.10, revenue $13.5B, operating earnings $1.420B and net earnings $1.125B. Year-over-year revenue +10.3%, operating earnings +12%, net earnings +13.2%, and EPS up $0.44 (12%). Company beat consensus EPS by $0.43.
Read all positive updates
Company Guidance
General Dynamics raised its 2026 diluted EPS guidance to $16.45–$16.55 (up from $16.10–$16.20) after a strong Q1 that delivered $4.10 EPS on $13.5B revenue, $1.420B operating earnings and $1.125B net earnings with a 10.5% operating margin (up 10 bps YoY); management reiterated expected full‑year capex of 3.5–4.0% of sales (Q1 capex $203M, ~1.5% of sales) and an anticipated free‑cash‑flow conversion of 100% of net income for the year (Q1 conversion 174%, operating cash flow $2.2B, free cash flow just shy of $2B), with Q1 the largest free‑cash‑flow quarter and positive cash flow expected in each remaining quarter; Q1 cash was $3.7B, net debt $4.4B (down $1.3B QoQ), dividends paid ≈$400M, buybacks ≈$200M (to cover dilution), net interest expense $69M, effective tax rate ~17.8% (consistent with ~17.5% guidance), orders >$26B (2.0x book‑to‑bill) driving backlog to $131B (+48% YoY, +11% QoQ) and total estimated contract value to $188B (+33% YoY), and the company expects to evaluate refinancing $1B of notes due in June/August 2026.General Dynamics Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 53.81B | 52.55B | 47.72B | 42.27B | 39.41B | 38.47B |
| Gross Profit | 7.48B | 7.95B | 7.36B | 6.67B | 6.62B | 6.41B |
| EBITDA | 6.26B | 6.10B | 5.82B | 5.25B | 5.31B | 5.19B |
| Net Income | 4.34B | 4.21B | 3.78B | 3.31B | 3.39B | 3.26B |
Balance Sheet | ||||||
| Total Assets | 59.03B | 57.25B | 55.88B | 54.81B | 51.59B | 50.07B |
| Cash, Cash Equivalents and Short-Term Investments | 3.65B | 2.33B | 1.70B | 1.91B | 1.24B | 1.60B |
| Total Debt | 8.01B | 9.79B | 10.68B | 11.08B | 12.11B | 13.18B |
| Total Liabilities | 32.95B | 31.63B | 33.82B | 33.51B | 33.02B | 32.43B |
| Stockholders Equity | 26.08B | 25.62B | 22.06B | 21.30B | 18.57B | 17.64B |
Cash Flow | ||||||
| Free Cash Flow | 6.20B | 3.96B | 3.20B | 3.81B | 3.46B | 3.38B |
| Operating Cash Flow | 7.42B | 5.12B | 4.11B | 4.71B | 4.58B | 4.27B |
| Investing Cash Flow | -1.35B | -1.29B | -959.00M | -945.00M | -1.49B | -882.00M |
| Financing Cash Flow | -3.64B | -3.19B | -3.37B | -3.09B | -3.47B | -4.59B |
General Dynamics Technical Analysis
Negative
336.29
Price Trends
349.03
Negative
347.15
Negative
334.38
Positive
Market Momentum
-3.65
Positive
40.88
Neutral
22.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GD, the sentiment is Negative. The current price of 336.29 is below the 20-day moving average (MA) of 343.73, below the 50-day MA of 349.03, and above the 200-day MA of 334.38, indicating a neutral trend. The MACD of -3.65 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 22.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GD.
General Dynamics Risk Analysis
General Dynamics disclosed 14 risk factors in its most recent earnings report. General Dynamics reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
General Dynamics Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $91.74B | 21.58 | 17.57% | 1.73% | 10.13% | 13.27% | |
69 Neutral | $60.03B | 47.45 | 8.28% | 1.61% | 2.53% | 8.24% | |
67 Neutral | $81.30B | 27.70 | 28.05% | 1.55% | 4.95% | 26.05% | |
67 Neutral | $232.69B | 31.57 | 11.23% | 1.44% | 10.56% | 56.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $117.54B | 23.12 | 74.53% | 2.77% | 4.59% | -10.76% | |
53 Neutral | $176.67B | -10,177.67 | -8719.23% | ― | 32.74% | ― |
* Industrials Sector Average
GD
General Dynamics
338.73
71.52
26.77%
BA
Boeing
224.11
40.87
22.30%
LHX
L3Harris Technologies
321.40
105.09
48.58%
LMT
Lockheed Martin
509.81
44.77
9.63%
NOC
Northrop Grumman
572.41
93.60
19.55%
RTX
RTX
172.79
48.75
39.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.