General Dynamics (NYSE:GD) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

General Dynamics (NYSE:GD) released its quarterly earnings results on Wednesday. The aerospace company reported $4.17 EPS for the quarter, topping analysts’ consensus estimates of $4.11 by $0.06, Zacks reports. The business had revenue of $14.38 billion for the quarter, compared to analyst estimates of $13.77 billion. General Dynamics had a net margin of 8.18% and a return on equity of 18.27%. General Dynamics’s revenue for the quarter was up 7.8% compared to the same quarter last year. During the same period last year, the firm earned $4.15 earnings per share.

Here are the key takeaways from General Dynamics’ conference call:

• General Dynamics reported Q4 EPS of $4.17 on revenue of $14.379B, with full‑year revenue up 10.1% and EPS up 13.4% versus 2024.
• The company finished 2025 with a record backlog of $118B and total estimated contract value of $179B, and a 2025 book‑to‑bill of 1.5x, giving strong near‑term revenue visibility.
• 2026 guidance calls for revenue of $54.3–54.8B, operating margin ~10.4%, EPS of $16.10–16.20, a target of 100% free cash flow conversion, and materially higher CapEx (expected >$900M, ~3.5–4% of sales).
• Marine Systems showed marked execution gains—Q4 revenue and productivity drove Electric Boat tonnage +13% and Q4 operating earnings up 72.5%, reflecting improved shipyard throughput.
• Aerospace margins were pressured by $41M of tariffs and a $75M G600 earnings shortfall (three fewer deliveries), plus tough prior‑year discrete items that make comparisons harder.

General Dynamics Trading Down 2.6%

NYSE:GD traded down $9.51 during mid-day trading on Wednesday, hitting $357.11. 693,961 shares of the company’s stock were exchanged, compared to its average volume of 1,479,484. General Dynamics has a fifty-two week low of $239.20 and a fifty-two week high of $369.70. The company has a current ratio of 1.40, a quick ratio of 0.87 and a debt-to-equity ratio of 0.29. The firm has a market capitalization of $96.46 billion, a P/E ratio of 23.10, a PEG ratio of 1.80 and a beta of 0.41. The company has a 50 day simple moving average of $347.09 and a 200-day simple moving average of $334.16.

General Dynamics Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 6th. Investors of record on Friday, January 16th will be given a dividend of $1.50 per share. The ex-dividend date is Friday, January 16th. This represents a $6.00 annualized dividend and a yield of 1.7%. General Dynamics’s dividend payout ratio (DPR) is currently 38.89%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on GD. Vertical Research raised General Dynamics from a “hold” rating to a “buy” rating and set a $400.00 price target for the company in a research note on Monday, October 27th. Susquehanna reaffirmed a “positive” rating and set a $420.00 price target on shares of General Dynamics in a report on Thursday, January 15th. UBS Group lifted their price objective on shares of General Dynamics from $381.00 to $388.00 and gave the company a “neutral” rating in a research note on Thursday, January 15th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of General Dynamics in a report on Thursday, January 22nd. Finally, JPMorgan Chase & Co. boosted their price target on General Dynamics from $380.00 to $385.00 and gave the stock an “overweight” rating in a report on Friday, December 19th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $366.70.

Insider Activity

In related news, VP David Paddock sold 20,360 shares of the stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $334.92, for a total value of $6,818,971.20. Following the completion of the sale, the vice president directly owned 36,644 shares in the company, valued at $12,272,808.48. This represents a 35.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 1.50% of the company’s stock.

Institutional Trading of General Dynamics

A number of institutional investors have recently bought and sold shares of GD. Brighton Jones LLC lifted its stake in shares of General Dynamics by 16.9% in the fourth quarter. Brighton Jones LLC now owns 2,885 shares of the aerospace company’s stock valued at $760,000 after buying an additional 417 shares in the last quarter. Acadian Asset Management LLC lifted its holdings in General Dynamics by 140.2% during the first quarter. Acadian Asset Management LLC now owns 3,445 shares of the aerospace company’s stock worth $938,000 after acquiring an additional 2,011 shares during the period. Sivia Capital Partners LLC bought a new position in General Dynamics during the second quarter valued at about $240,000. Flow Traders U.S. LLC purchased a new position in General Dynamics in the second quarter valued at about $352,000. Finally, Jump Financial LLC purchased a new stake in General Dynamics in the second quarter worth $1,284,000. Institutional investors own 86.14% of the company’s stock.

General Dynamics Company Profile

General Dynamics is a major American aerospace and defense contractor that designs, manufactures and supports a broad range of products and services for government and commercial customers worldwide. Headquartered in the United States (Reston, Virginia), the company supplies platforms and systems used by armed forces, civil authorities and private operators across multiple domains including air, land, sea and cyber.

Its principal activities span several operating businesses: a business aviation unit that develops and supports Gulfstream business jets; land systems that produce armored combat vehicles and related logistics and sustainment services; marine systems that design and construct submarines and surface ships for navies; and mission systems and information technology operations that provide command-and-control, communications, cybersecurity and systems-integration services.