General Dynamics' Quarterly Earnings Preview: What You Need to Know

With a market cap of $94.1 billion, General Dynamics Corporation (GD) is a global aerospace and defense company operating through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. It delivers a broad portfolio of advanced products and services including business jets, nuclear-powered submarines, combat vehicles, weapons systems, IT solutions, and next-gen technologies, supporting both military and commercial customers worldwide.

The Reston, Virginia-based company is expected to release its fiscal Q2 2026 results soon. Ahead of the event, analysts project GD to report an EPS of $3.93, a 5.1% rise from $3.74 in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in each of the last four quarters.

For fiscal 2026, analysts forecast the defense contractor to post EPS of $16.63, up 7.6% from $15.46 in fiscal 2025. Moreover, EPS is expected to grow 9.9% year-over-year to $18.28 in fiscal 2027.

Shares of General Dynamics have increased 20.5% over the past 52 weeks, slightly outperforming the broader S&P 500 Index's ($SPX) 20.4% return. However, the stock has lagged behind the State Street Industrial Select Sector SPDR ETF's (XLI) 25.3% gain over the same period. 

General Dynamics shares soared nearly 8% on Apr. 29 after the company reported better-than-expected Q1 2026 results, with revenue rising 10% to $13.48 billion and EPS increasing to $4.10, driven by strong performance in its Marine Systems and Aerospace businesses. Marine Systems revenue climbed 21% to $4.34 billion as productivity improved following recovery from supply chain disruptions and labor shortages, while Aerospace revenue increased 8.4% to $3.28 billion with 38 Gulfstream aircraft deliveries, and free cash flow improved to $1.95 billion. 

Investor optimism strengthened after the company raised its full-year 2026 EPS guidance to $16.45 - $16.55, exceeding the consensus estimate, while reporting $26.6 billion in new orders and a total estimated contract value of $188.4 billion, including a $130.8 billion backlog.

Analysts' consensus view on GD stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 13 suggest a "Strong Buy," 10 give a "Hold," and one provides a "Strong Sell" rating. The average analyst price target is $393.71, suggesting a potential upside of 11.7% from current levels.