10-Q · July 29, 2026
General Dynamics delivered a strong Q2, with revenue of $14.094 billion up 8.1% year over year, EPS of $4.24, and operating margin expanding to 10.4%. Aerospace and Marine Systems supplied the principal growth and…
Earnings analysis · 10-Q
GD earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
General Dynamics reported a strong third quarter, with revenue of $14.566 billion and diluted EPS of $4.49, both materially above the prior-year quarter and consensus estimates of $13.719 billion and $4.13. Operating…
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General Dynamics reported a strong third quarter, with revenue of $14.566 billion and diluted EPS of $4.49, both materially above the prior-year quarter and consensus estimates of $13.719 billion and $4.13. Operating margin improved to 10.5%, all 4 segments grew, and backlog reached $220.339 billion. Free cash flow remained strong at $1.229 billion but declined from both the prior quarter and prior-year period. No numeric forward guidance or material risk-factor changes were disclosed.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.49
- Operating margin
- 10.5%
What stood out
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Revenue accelerated sequentially and year over year
Revenue was $14.566 billion, up approximately 3.4% from $14.09 billion in 2026 Q2 and 12.8% from $12.91 billion in 2025 Q3.
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EPS growth exceeded revenue growth
Diluted EPS was $4.49, up from $4.24 in 2026 Q2 and $3.88 in 2025 Q3, representing increases of approximately 5.9% and 15.7%, respectively.
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Operating margin expanded modestly
Operating margin was 10.5%, compared with 10.4% in 2026 Q2 and 10.3% in 2025 Q3, indicating modest sequential and year-over-year expansion.
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Growth was broad-based across segments
All 4 operating segments grew, with Marine Systems identified as the leading growth contributor.
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Backlog reached a record level
Backlog increased to $220.339 billion, providing substantial contracted demand visibility, although conversion depends on program execution and funding.
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Cash generation remained positive
Free cash flow was $1.229 billion, representing positive cash generation but declining from $1.64 billion in 2026 Q2 and $1.9 billion in 2025 Q3.
What to watch
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Cash conversion weakened
Free cash flow declined to $1.229 billion from $1.64 billion in the prior quarter and $1.9 billion in the prior-year quarter, indicating weaker quarter-over-quarter and year-over-year cash conversion.
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Backlog conversion and funding risk
The company’s $220.339 billion backlog supports visibility but remains exposed to government funding, contract execution, cost performance and potential contract termination risks.
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Risk factors were unchanged
The filing states that there were no material changes to the risk-factor disclosure from the 2025 Form 10-K; the unchanged framework continues to identify defense-budget changes, supplier performance, cybersecurity events and government contract reviews as material uncertainties.
Management's outlook
No quantitative forward guidance or change to prior outlook was disclosed in the filing; outlook was deferred to the earnings release and call.
Earlier filings 4
10-Q · April 29, 2026
General Dynamics reported strong Q1 2026 results with revenue of $13.5 billion, up 10.3% from $12.2 billion in Q1 2025, and EPS of $4.10, surpassing the estimated $3.69. Improvements were observed across all segments,…
10-K · January 30, 2026
General Dynamics reports continued multi-year revenue growth driven by Aerospace and Marine Systems, with Q4 2025 revenue of $14,379,000,000 and diluted EPS of $4.16 for the quarter. The company highlights substantial…
10-Q · July 23, 2025
General Dynamics reported Q2 revenue of $13,041 million (up $1,065 million, +8.9% YoY) and diluted EPS of $3.74 (up $0.48, +14.7% YoY). Operating earnings rose to $1,305 million (vs. $1,156 million a year ago) and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.