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,…
Earnings analysis · 10-Q
GD earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
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…
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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 margin contribution, while Combat Systems profitability softened on program mix and lower U.S. vehicle demand. Liquidity strengthened materially, as six-month free cash flow reached $3.598 billion and backlog rose to $136.498 billion; segment-level 2026 outlooks remain constructive.
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.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
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
- $4.24
- Operating margin
- 10.4%
What stood out
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Revenue and EPS accelerated
Q2 revenue was $14.094 billion, up $1.053 billion (8.1%) year over year and up $614 million (4.6%) from Q1 2026 revenue of $13.480 billion. Diluted EPS was $4.24, up $0.50 from $3.74 a year earlier and $0.14 from $4.10 in Q1.
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Year-over-year margin expansion
Operating earnings rose $155 million (11.9%) to $1.460 billion, lifting operating margin 40 basis points year over year to 10.4%. Margin was down 10 basis points sequentially from 10.5% in Q1 2026.
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Aerospace led growth and margin gains
Aerospace revenue increased $463 million (15.1%) to $3.525 billion and operating earnings rose $107 million (26.6%) to $510 million. Gulfstream deliveries increased by 3 aircraft to 41, while segment margin expanded 130 basis points to 14.5%.
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Marine growth supported by submarine work
Marine Systems revenue grew $440 million (10.4%) to $4.660 billion, driven by $281 million of higher Navy ship-construction revenue and $159 million of higher ship-services revenue. Segment margin improved 40 basis points to 7.3%.
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Working-capital release drove cash flow
Six-month operating cash flow was $4.035 billion versus $1.450 billion a year earlier, producing $3.598 billion of free cash flow after $437 million of capital expenditures. Cash and equivalents ended at $4.3 billion, up from $2.3 billion at year-end 2025.
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Backlog builds across defense and aerospace
Total backlog increased $5.658 billion sequentially to $136.498 billion, including $65.182 billion in Marine Systems and $29.350 billion in Combat Systems. Aerospace posted a 1.5-to-1 Q2 book-to-bill ratio.
What to watch
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Combat Systems mix pressured profit
Combat Systems was essentially flat: Q2 revenue increased only $7 million (0.3%) to $2.290 billion, while operating earnings declined $6 million (1.9%) to $318 million and margin fell 30 basis points to 13.9%. Management cited lower U.S. military-vehicle revenue of $126 million, reflecting Army recapitalization efforts and the M10 Booker termination.
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Rising capex and near-term debt maturity
Capital expenditures rose 29% year over year to $437 million in the first six months and management expects spending to increase further in the second half. The company also plans to repay $500 million of fixed-rate notes maturing in August 2026 using cash on hand, subject to ongoing monitoring of market conditions and borrowing needs.
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401(k) registration remediation
The company identified up to approximately 300,000 unregistered shares sold through certain 401(k) plans and intends to make a rescission offer covering purchases from July 1, 2025 through June 30, 2026. Management does not expect a material financial impact, but the matter creates execution and potential participant-claim exposure.
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No formal risk-factor update; supply risk remains
Item 1A states there were no material changes to risk factors from the 2025 Form 10-K. Nonetheless, management noted supply-chain delays at an Israel-based mid-cabin airframe supplier and cited conflicts in the Middle East as the cause.
Management's outlook
The 10-Q provides segment outlook rather than consolidated revenue/EPS guidance: 2026 Aerospace revenue approximately $13.8 billion and 14.7% margin; Marine Systems approximately $18.0 billion and 7.4%; Combat Systems approximately $9.8 billion and 13.8%; Technologies approximately $14.1 billion and 9.4%.
Earlier filings 4
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…
10-Q · April 23, 2025
General Dynamics reported Q1 revenue of $12,223 million (+$1,492 million vs. prior-year quarter) and diluted EPS of $3.66 (vs. $2.88 a year earlier), driven by higher Aerospace and Technologies revenue and improved…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.