General Dynamics Corp.

General Dynamics Corp.

GD

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Market Cap$103.74B
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P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
General Dynamics Corp.General Dynamics Corp.23.11.61%17%1.90.8

Earnings Call Q2 2026

July 29, 2026 - AI Summary

Strong results + margin expansion (good): - Q2’26 earnings: $4.24 EPS on $14.1B revenue; operating earnings $1.460B, net earnings $1.160B. - YoY: revenue +8.1%, operating earnings ~+12%, net earnings +14.4%, EPS +13.4%. - Operating margin: 10.4%, up +40 bps YoY (with revenue growth driving earnings). - Sequential: revenue +4.5%, operating earnings +2.8%, EPS +3.4%. - Beat consensus: company says it beat sell-side by $0.28 (more revenue + operating margin than expected).
Backlog and orders remain very strong (opportunity): - Q2 orders: just under $20B, book-to-bill 1.4x; all 4 segments >1.0x. - Aerospace: book-to-bill 1.5x; record backlog $136.5B (+32% YoY). - Defense/Combat: book-to-bill 1.4–2.1x within Combat Systems (notably 2.1x for Combat Systems’ segment, driven by large armored vehicle and munitions demand). - Aerospace demand described as very active across U.S. and Asia, with some cautious concern in the Middle East but activity still in the pipeline.
Cash generation unusually strong; guidance shifts modestly (good but with timing factors): - Operating cash flow: $1.9B in Q2; $4B+ in first half (combined Q1 + Q2). - Operating working capital improved: operating working capital down over $1B from end of 2025. - Free cash flow (FCF): $1.6B in Q2; $3.6B in H1. - Cash conversion: Q2 142%, H1 >150%. - Updated full-year expectation: FCF conversion ~105% of net income (i.e., still strong, but second-half lighter). - Key reasons for lighter H2: higher capex, plus ~$500M pension contribution, cash taxes weighted to H2 (> $500M payments), and working down advance payments at European Land Systems in H2. - Capital deployment: $430M dividends in the quarter; ~$100M buybacks (to cover dilution); $500M notes repaid, with another $500M due in August expected to be repaid with cash.

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$416.88

Target Price by Analysts

8.7% upsideGeneral Dynamics Target Price DetailsTarget Price
$519.70

Current Fair Value

35.5% upside

Undervalued by 35.5% based on the discounted cash flow analysis.

Share Statistics

Market cap$103.74 Billion
Enterprise Value$119.92 Billion
Dividend Yield$6.18 (1.61%)
Earnings per Share$15.64
Beta0.34
Outstanding Shares270,200,000

Return

Return on Equity16.73%ROE
Return on Assets7.46%
Return on Invested Capital13.46%

Valuation & Multiples

P/E Ratio23.06P/E Ratio
PEG160.13PEG
Price to Sales1.89Price to Sales
Price to Book Ratio3.87Price to Book Ratio
Enterprise Value to Revenue2.19
Enterprise Value to EBIT21.52
Enterprise Value to Net Income26
Total Debt to Enterprise0.17
Debt to Equity0.76Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 29, 2026
EPS Estimate
$3.96
Average shareholder expectation
Revenue Estimate
$13.52 B
Average shareholder expectation

Next Earnings Call

Expected Date
October 23, 2026
EPS Estimate
$4.11
Average shareholder expectation
Revenue Estimate
$13.68 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.4667 34.99%
Total Calls1,500 99.85%
Total Puts700 99.91%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %3.82% 82.87%
Total Invested$3.57B 95.55%
Investors Holding1,048 1215.00%

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.