General Dynamics Posts Q2 Earnings Beat, Revenue Increase

General Dynamics (GD) reported second-quarter 2026 diluted EPS of $4.24, topping the $3.94 consensus estimate, on revenue of $14.09 billion versus $13.52 billion expected. Revenue rose 8.1% year over year, and operating margin expanded to 10.4%.

Growth was broad-based across all four segments, led by double-digit gains at Aerospace and Marine Systems. Aerospace revenue reached $3.53 billion as Gulfstream delivered 41 aircraft, 35 large-cabin and six midsize, with the ultra-long-range G800 continuing its ramp after entering service in 2025. Marine Systems revenue rose to $4.66 billion, Technologies grew to $3.62 billion, and Combat Systems was roughly flat at $2.29 billion.

Total backlog climbed to $136.5 billion, with $20 billion of new orders booked in the quarter and a 1.4-to-1 book-to-bill ratio company-wide, reflecting sustained defense demand and steady business-jet orders. Shares jumped to a fresh 52-week high near $387, and Jefferies and Morgan Stanley both raised price targets afterward.

The quarter positions General Dynamics as a beneficiary of elevated defense spending and resilient demand for Gulfstream's expanding lineup. Investors will watch whether it keeps converting its record backlog into revenue as delivery pace accelerates toward roughly 160 aircraft for 2026.

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