With a market cap of $104.4 billion, General Dynamics Corporation (GD) is a global aerospace and defense company operating through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. It delivers a broad portfolio of advanced products and services including business jets, nuclear-powered submarines, combat vehicles, weapons systems, IT solutions, and next-gen technologies, supporting both military and commercial customers worldwide.
Shares of the Reston, Virginia-based company have outpaced the broader market over the past 52 weeks. GD stock has increased 22.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.3%. Moreover, shares of the company have soared 14.8% on a YTD basis, compared to SPX’s 11.9% gain.
Focusing more closely, shares of the defense contractor have outperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 19.7% return over the past 52 weeks.
General Dynamics reported stronger-than-expected Q2 2026 results on Jul. 29, with revenue increasing more than 8% to $14.09 billion and adjusted EPS of $4.24. The company raised its 2026 earnings forecast to $16.80 per share - $16.90 per share. The upbeat outlook was supported by 15.1% revenue growth at Gulfstream, higher aircraft deliveries, and 10.4% growth in Marine Systems, alongside bookings of 1.4× billings, indicating robust demand for its aerospace and defense products.
For the fiscal year ending in December 2026, analysts expect General Dynamics’ adjusted EPS to grow 9.8% year-over-year to $16.97. The company's earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, 10 “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago, with 12 “Strong Buy” ratings on the stock.
On Aug. 3, Jefferies analyst Sheila Kahyaoglu maintained a “Buy” rating on General Dynamics and set a $460 price target.
The mean price target of $420.23 represents a premium of 8.9% to GD's current price. The Street-high price target of $465 suggests a 20.5% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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