General Dynamics Corp.

General Dynamics Corp.

GD

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Market Cap$93.79B
Close$

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P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
General Dynamics Corp.General Dynamics Corp.21.61.76%17%1.70.7

Earnings Call Q1 2026

April 29, 2026 - AI Summary

Strong Financial Performance: General Dynamics reported Q1 2026 earnings of $4.10 per diluted share, with revenue of $13.5 billion, representing a 10.3% increase year-over-year. Net earnings were $1.125 billion, an increase of 13.2% YOY, driven by strong performance in all segments, particularly Aerospace and Marine Systems. Operating earnings were $1.420 billion, a 12% increase compared to the same quarter last year.
Record Cash Flow and Backlog: Operating cash flow reached $2.2 billion, with free cash flow nearing $2 billion, yielding a cash conversion rate of 174%. The company received over $26 billion in orders, achieving a book-to-bill ratio of 2:1, bringing total backlog to $131 billion—a 48% increase from the previous year, indicating strong future demand.
Segment Performance and Challenges: While Aerospace delivered an 8.4% increase in revenue to $3.3 billion, with a significant focus on aircraft deliveries (38 in the quarter), the company noted caution in demand from the Middle East due to geopolitical tensions. Marine Systems saw a strong 21% revenue growth driven by the Columbia and Virginia class programs, but supply chain issues remain a lingering concern, particularly in complex components.

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$403.00

Target Price by Analysts

19.6% upsideGeneral Dynamics Target Price DetailsTarget Price
$567.49

Current Fair Value

68.4% upside

Undervalued by 68.4% based on the discounted cash flow analysis.

Share Statistics

Market cap$93.79 Billion
Enterprise Value$109.00 Billion
Dividend Yield$6.09 (1.76%)
Earnings per Share$15.64
Beta0.35
Outstanding Shares270,200,000

Return

Return on Equity16.65%ROE
Return on Assets7.35%
Return on Invested Capital13.52%

Valuation & Multiples

P/E Ratio21.59P/E Ratio
PEG163.8PEG
Price to Sales1.69Price to Sales
Price to Book Ratio3.51Price to Book Ratio
Enterprise Value to Revenue2.03
Enterprise Value to EBIT20.05
Enterprise Value to Net Income25
Total Debt to Enterprise0.17
Debt to Equity0.72Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
April 29, 2026
EPS Estimate
$3.67
Average shareholder expectation
Revenue Estimate
$12.70 B
Average shareholder expectation

Next Earnings Call

Expected Date
July 22, 2026
EPS Estimate
$3.93
Average shareholder expectation
Revenue Estimate
$13.43 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.8165 8.62%
Total Calls980,124 36.13%
Total Puts800,300 28.60%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %86.64% 0.02%
Total Invested$80.24B 1.93%
Investors Holding2,243 31.00%

ESG Score

No data

About General Dynamics Corp.

CEO: Phebe Novakovic

Relevant Senate Committees

Joint Committee on Taxation

This committee's role in providing revenue estimates and technical analysis for all tax legislation directly influences corporate tax structures and capital investment credits, which significantly affect General Dynamics' financial planning and profitability.

Finance

As the primary tax-writing committee, it drives corporate valuations through tax policy (e.g., corporate tax rates, R&D credits). These policies directly impact General Dynamics' profitability, investment decisions, and overall financial health.

Appropriations

This committee allocates discretionary federal spending, and its subcommittees determine the precise cash flow for defense programs. These decisions directly fund General Dynamics' contracts and significantly affect its order books and revenues.

Armed Services

This committee directly oversees the Department of Defense and authorizes the annual NDAA, which determines the specific programs, revenue streams, and R&D funding for defense contractors like General Dynamics. It is critically relevant to GD's business.

Budget

This committee drafts the budget resolution that sets overall spending ceilings. Its decisions directly impact the total defense budget, which is a primary determinant of General Dynamics' funding and contract opportunities.

Select Committee on Intelligence

As a major defense and cybersecurity contractor, General Dynamics' future contracts and strategic direction are highly sensitive to global threats and intelligence priorities. Committee members' access to classified briefings creates a significant potential for informational asymmetry directly impacting GD's stock.

Homeland Security and Governmental Affairs

As a major federal contractor, General Dynamics is directly impacted by this committee's oversight of government procurement and efficiency, which are central to GD's business operations and revenue streams.