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General Dynamics
(NYSE:GD)
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Rating:79Outperform
Price Target:
$397.00
▲(18.05% Upside)
Action:Reiterated
Date:05/12/26
The score is driven primarily by strong financial performance (notably cash generation and improving leverage) and a highly positive earnings update with raised guidance and major backlog expansion. Technicals are moderately supportive, while valuation is fair rather than compelling, keeping the overall score below the high-80s/90s range.
Positive Factors
Strong cash generation
Sustained high operating and free cash flow provides durable financial flexibility to fund multi-year programs, invest in shipyards and G700/G800 production, pay dividends, and modest buybacks. Strong cash reduces reliance on external funding and supports steady capital allocation over the medium term.
Negative Factors
Single-source supply constraints
Dependence on single-source suppliers for complex assemblies creates persistent execution risk: delays or quality issues can slow deliveries, raise costs, and compress margins across shipbuilding and aircraft programs until alternate suppliers or vertical solutions are implemented.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained high operating and free cash flow provides durable financial flexibility to fund multi-year programs, invest in shipyards and G700/G800 production, pay dividends, and modest buybacks. Strong cash reduces reliance on external funding and supports steady capital allocation over the medium term.
Read all positive factors
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 (GD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$94.65B
Dividend Yield1.73%
Average Volume (3M)1.18M
Price to Earnings (P/E)21.8
Beta (1Y)0.52
Revenue Growth9.35%
EPS Growth10.49%
CountryUS
Employees110,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)16.11
Shares Outstanding270,430,180
10 Day Avg. Volume1,486,065
30 Day Avg. Volume1,183,631
Financial Highlights & Ratios
PEG Ratio1.62
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/Revenue1.90
Enterprise Value/Gross Profit12.50
Enterprise Value/Ebitda16.25
Forecast
1Y Price Target
$388.69Price Target Upside15.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)16.7
Revenue Forecast (FY)$55.36B
General Dynamics Business Overview & Revenue Model
Company Description
General Dynamics Corporation is a global leader in the aerospace and defense industry, with its operations structured across four key divisions: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment focuses on the desi...
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 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 | 8.20B | 7.95B | 7.36B | 6.67B | 6.62B | 6.41B |
| EBITDA | 6.31B | 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
Positive
336.29
Price Trends
342.43
Positive
344.46
Positive
341.81
Positive
Market Momentum
4.24
Negative
67.74
Neutral
74.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GD, the sentiment is Positive. The current price of 336.29 is below the 20-day moving average (MA) of 350.50, below the 50-day MA of 342.43, and below the 200-day MA of 341.81, indicating a bullish trend. The MACD of 4.24 indicates Negative momentum. The RSI at 67.74 is Neutral, neither overbought nor oversold. The STOCH value of 74.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $94.65B | 21.79 | 17.41% | 1.73% | 9.35% | 10.49% | |
69 Neutral | $54.92B | 31.81 | 8.87% | 1.61% | 5.79% | 9.31% | |
68 Neutral | $249.94B | 34.48 | 11.23% | 1.44% | 10.56% | 56.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $74.07B | 16.19 | 28.05% | 1.55% | 4.95% | 26.05% | |
59 Neutral | $125.87B | 26.32 | 74.53% | 2.77% | 4.59% | -10.76% | |
53 Neutral | $178.54B | 93.59 | -8723.08% | ― | 32.74% | ― |
* Industrials Sector Average
GD
General Dynamics
373.54
83.89
28.96%
BA
Boeing
226.49
10.57
4.90%
LHX
L3Harris Technologies
302.07
50.42
20.04%
LMT
Lockheed Martin
545.91
95.54
21.21%
NOC
Northrop Grumman
549.01
52.59
10.59%
RTX
RTX
199.25
55.79
38.89%
General Dynamics Corporate Events
Executive/Board ChangesShareholder Meetings
General Dynamics Shareholders Reaffirm Board and Governance Direction
Positive
May 11, 2026
At General Dynamics’ annual meeting of shareholders held on May 6, 2026, investors elected all nominated directors in an uncontested vote, reaffirming the current board’s composition and leadership. The slate included Chair and CEO Phe...
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.