General Dynamics (GD)
NYSE:GD
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General Dynamics
(NYSE:GD)
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Rating:74Outperform
Price Target:
$399.00
▲(14.51% Upside)
Action:DowngradedDate:01/29/26
The score is driven primarily by solid financial performance (steady growth, stable profitability, and improved leverage) and a strong earnings-call outlook (clear 2026 guidance and record backlog). Technicals are supportive but not strongly momentum-driven, while valuation is a modest headwind given the P/E and moderate dividend yield.
Positive Factors
Record backlog and contract pipeline
A $118B backlog and $179B total estimated contract value provide multi-year revenue visibility across segments, lowering near-term demand risk. High book-to-bill signals sustained government and international awards, supporting durable cash flow and program continuity over several years.
Negative Factors
Rising capital intensity and refinancing exposure
A large, sustained jump in capex raises structural cash needs and capital intensity, which can strain FCF if conversion falls short. Reliance on refinancing exposes interest cost risk; higher recurring interest would reduce free cash available for buybacks, dividends, or M&A over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Record backlog and contract pipeline
A $118B backlog and $179B total estimated contract value provide multi-year revenue visibility across segments, lowering near-term demand risk. High book-to-bill signals sustained government and international awards, supporting durable cash flow and program continuity over several years.
Read all positive factors
General Dynamics (GD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$94.21B
Dividend Yield1.73%
Average Volume (3M)1.26M
Price to Earnings (P/E)21.6
Beta (1Y)0.54
Revenue Growth11.86%
EPS Growth17.39%
CountryUS
Employees110,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)4.17
Shares Outstanding270,389,770
10 Day Avg. Volume1,215,836
30 Day Avg. Volume1,259,565
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 Cap1.08
Enterprise Value/Revenue1.94
Enterprise Value/Gross Profit12.84
Enterprise Value/Ebitda16.75
Forecast
1Y Price Target
$398.25Price Target Upside14.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)16.37
Revenue Forecast (FY)$54.77B
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 generates revenue through multiple key streams, primarily from government contracts and sales to commercial clients. The Aerospace segment contributes significantly to revenue through the production and servicing of business jets ...
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:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call highlighted strong top-line growth, record backlog and contract value, robust order intake (notably at Combat and Marine), excellent cash generation and clear 2026 guidance. Key operational wins include significant productivity gains at shipyards and strong Gulfstream demand driven by new models. Offsetting items include near-term aerospace margin headwinds (G600), tariff impacts, Technologies segment softness, supply-chain bottlenecks and a substantial planned increase in capex with a refinancing assumption. Overall the positives — durable backlog, strong cash flow, and clear guidance — materially outweigh the near-term operational and cost challenges.Positive Updates
Quarterly Financial Results
Q4 revenue of $14.307B, operating earnings of $1.152B, net earnings of $1.143B and diluted EPS of $4.17. Sequentially, revenue beat prior quarter by 11.4%, operating earnings by 9.1%, net earnings by 7.9% and EPS improved by $0.29.
Negative Updates
Aerospace Q4 Earnings Pressure
Aerospace Q4 had revenue of $3.788B but showed a $104M decrease in operating earnings compared to the referenced prior period; G600 product line reduced earnings by ~$75M in the quarter due to three fewer deliveries, liquidated-damage variances, higher overheads and tariffs.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Financial Results
Q4 revenue of $14.307B, operating earnings of $1.152B, net earnings of $1.143B and diluted EPS of $4.17. Sequentially, revenue beat prior quarter by 11.4%, operating earnings by 9.1%, net earnings by 7.9% and EPS improved by $0.29.
Read all positive updates
Company Guidance
General Dynamics guided 2026 companywide revenue of $54.3–$54.8 billion, an operating margin of about 10.4% (up ~20 bps), operating earnings near $5.7 billion and diluted EPS of $16.10–$16.20 (guidance excludes capital deployment; a hypothetical $4/quarter would move Q1 -$0.40, Q2 -$0.30, Q3 -$0.10 and Q4 +$0.80). By segment, Aerospace revenue ~ $13.6 billion with ~14% operating margin and ~ $1.9 billion of operating earnings (Gulfstream deliveries ~160), Combat Systems $9.6–9.7 billion revenue with a 14.1% margin and ~ $1.36 billion earnings, Marine Systems $17.3–17.7 billion revenue with a ~30 bps margin improvement and ~ $1.3 billion earnings, and Technologies up to $13.8 billion with ~9.2% margin and ~ $1.3 billion earnings. The company expects 2026 capex to rise by >$900 million (≈79% vs 2025) to about 3.5–4% of sales, targets 100% free cash flow conversion of net income, anticipates interest expense ~ $340 million (vs $314 million in 2025), and a steady effective tax rate near 17.5%; note year-end 2025 metrics included record backlog of $118 billion and total estimated contract value of $179 billion.General Dynamics Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
80
Positive
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 52.55B | 47.72B | 42.27B | 39.41B | 38.47B |
| Gross Profit | 7.95B | 7.36B | 6.67B | 6.62B | 6.41B |
| EBITDA | 6.10B | 5.82B | 5.25B | 5.31B | 5.19B |
| Net Income | 4.21B | 3.78B | 3.31B | 3.39B | 3.26B |
Balance Sheet | |||||
| Total Assets | 57.25B | 55.88B | 54.81B | 51.59B | 50.07B |
| Cash, Cash Equivalents and Short-Term Investments | 2.33B | 1.70B | 1.91B | 1.24B | 1.60B |
| Total Debt | 9.79B | 10.68B | 11.08B | 12.11B | 13.18B |
| Total Liabilities | 31.63B | 33.82B | 33.51B | 33.02B | 32.43B |
| Stockholders Equity | 25.62B | 22.06B | 21.30B | 18.57B | 17.64B |
Cash Flow | |||||
| Free Cash Flow | 3.96B | 3.20B | 3.81B | 3.46B | 3.38B |
| Operating Cash Flow | 5.12B | 4.11B | 4.71B | 4.58B | 4.27B |
| Investing Cash Flow | -1.29B | -959.00M | -945.00M | -1.49B | -882.00M |
| Financing Cash Flow | -3.19B | -3.37B | -3.09B | -3.47B | -4.59B |
General Dynamics Technical Analysis
Negative
348.43
Price Trends
352.93
Negative
348.92
Negative
333.61
Positive
Market Momentum
-1.62
Positive
47.46
Neutral
63.55
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 348.43 is below the 20-day moving average (MA) of 350.36, below the 50-day MA of 352.93, and above the 200-day MA of 333.61, indicating a neutral trend. The MACD of -1.62 indicates Positive momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 63.55 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $98.00B | 19.57 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $66.12B | 47.45 | 8.28% | 1.61% | 2.83% | 47.00% | |
75 Outperform | $265.67B | 36.54 | 10.62% | 1.44% | 8.79% | 39.63% | |
74 Outperform | $94.21B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $144.42B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $164.92B | 74.05 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
GD
General Dynamics
348.43
82.05
30.80%
BA
Boeing
210.00
49.18
30.58%
LHX
L3Harris Technologies
354.00
143.26
67.98%
LMT
Lockheed Martin
627.70
177.75
39.51%
NOC
Northrop Grumman
690.50
186.30
36.95%
RTX
RTX
197.92
71.62
56.71%
General Dynamics Corporate Events
Executive/Board Changes
General Dynamics Announces Upcoming Controller Transition
Neutral
Dec 5, 2025
On December 3, 2025, General Dynamics announced that William A. Moss will retire as vice president and controller on March 31, 2026. Dana O. Maisano, with over 20 years at the company and experience in various finance roles, will succeed him as co...
Executive/Board Changes
Danny Deep Appointed President of General Dynamics
Neutral
Dec 5, 2025
On December 3, 2025, Danny Deep, a veteran with over 20 years at General Dynamics, will assume the role of president. His compensation includes a base salary of $1,300,000, with a target annual incentive at 150% of his salary, and a long-term equi...
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.