General Dynamics Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.60%.
Did GD Beat Earnings? Q1 2026 Results
General Dynamics kicked off 2026 with a strong first quarter, posting diluted EPS of $4.10 and revenue of $13.48 billion, both up 12% and 10.3% respectively from the year-ago period, extending the defense and aerospace giant's streak of beating consensus EPS estimates to four consecutive quarters. The single most compelling storyline was a dramatic swing in cash generation, with operating cash flow of $2.15 billion representing 192% of net earnings, compared to negative $148 million in Q1 2025, a shift that helped drive net debt down to $4.36 billion from $5.68 billion and pushed the company's cash balance to $3.65 billion. Marine Systems led segment performance with revenue up 21% and operating earnings up 26.4%, while robust order activity produced a consolidated 2-to-1 book-to-bill ratio and lifted total estimated contract value to $188.44 billion, providing substantial revenue visibility heading into the rest of the year. CEO Phebe Novakovic characterized the results as a "very good start," signaling confidence in sustaining that momentum through 2026.
- Marine Systems revenue grew 21.0% YoY, the fastest-growing segment
- Aerospace operating margin expanded to 15.0% from 14.3%
- Marine Systems operating earnings grew 26.4% YoY
- Operating cash flow of $2.2 billion represented 192% of net earnings
- Strong order activity with 2-to-1 consolidated book-to-bill ratio
- Gulfstream delivered 38 aircraft vs. 36 in the year-ago quarter
- Aerospace book-to-bill improved to 1.2x from 0.8x in Q1 2025
“Our businesses had a very good start to the year, delivering strong operating results and excellent cash conversion.”
General Dynamics CEO, on the earnings call
Forward Guidance & Outlook
CEO Phebe Novakovic stated the company is 'positioned well to drive additional performance throughout the year,' signaling confidence in sustained growth across the business. Strong order activity with a 2-to-1 book-to-bill ratio and total estimated contract value of $188.4 billion provide significant revenue visibility.
GD YoY Financials
GD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.