The strong earnings beat and robust backlog growth support the stock. Monitor the conference call for any guidance updates on defense spending, Gulfstream delivery pace, and capital deployment priorities. The net debt reduction and cash generation provide flexibility for shareholder returns and M&A.
Price Chart
Executive Summary
General Dynamics reported Q2 2026 revenue of $14.1B (+8.1% YoY) and diluted EPS of $4.24 (+13.4% YoY), with operating margin expanding 40bps to 10.4%. Orders totaled $20B, driving a 1.4x book-to-bill and a backlog of $136.5B. The consistent performance across all segments—particularly Aerospace (+15.1% revenue) and Marine Systems (+10.4%)—reinforces strong execution and demand.
Key Financial Metrics
Key Facts
- Revenue: $14.094B, up 8.1% YoY from $13.041B
- Diluted EPS: $4.24, up 13.4% YoY from $3.74
- Operating margin: 10.4%, up 40 bps from 10.0%
- Operating cash flow: $1.880B in Q2; free cash flow: $1.646B
- Orders: $20.0B ($14.7B defense + $5.3B aerospace); book-to-bill 1.4x
- Backlog: $136.5B; total estimated contract value: $186.9B
- Net debt reduced to $3.183B from $5.680B at year-end 2025
- Gulfstream deliveries: 41 units (35 large, 6 mid), up from 38 year-ago
Financial Impact
Revenue grew 8.1% YoY, EPS grew 13.4% YoY, operating margin expanded 40 bps, and free cash flow was $1.646B
Risk Factors
- Supply chain constraints could slow Gulfstream deliveries and Marine Systems programs
- Defense budget uncertainty and geopolitical shifts may impact order flow
- Rising interest rates could increase debt costs and pressure margins
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000040533-26-000029 |
| Document: gd-20260729.htm | 0000040533-26-000029 |
| Document: 0000040533-26-000029-index-headers.html | 0000040533-26-000029 |
| Document: 0000040533-26-000029-index.html | 0000040533-26-000029 |
| Document: 0000040533-26-000029.txt | 0000040533-26-000029 |
| 8-K Data (Synthetic) | 0000040533-26-000029 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 7w ago | Insider Cluster | $394.21 $354.25 | ▼ −10.14% | ▼ −8.24% | $330.09 (−16.27%) |
Aug 12, 2026 7w ago | Insider Cluster | $394.21 $354.25 | ▼ −10.14% | ▼ −8.24% | $330.09 (−16.27%) |
Aug 6, 2026 8w ago | Insider Cluster | $386.92 $365.05 | ▼ −5.65% | ▼ −6.25% | $330.09 (−14.69%) |
Aug 6, 2026 8w ago | Insider Cluster | $386.92 $365.05 | ▼ −5.65% | ▼ −6.25% | $330.09 (−14.69%) |
Aug 6, 2026 8w ago | Insider Cluster | $386.92 $365.05 | ▼ −5.65% | ▼ −6.25% | $330.09 (−14.69%) |
Aug 5, 2026 8w ago | Press Release | $384.08 $364.07 | ▼ −5.21% | ▼ −4.61% | $330.09 (−14.06%) |
Aug 4, 2026 8w ago | Insider Cluster | $384.08 $364.07 | ▼ −5.21% | ▼ −4.61% | $330.09 (−14.06%) |
Jul 29, 2026 9w ago | Press Release | $382.20 $380.06 | ▼ −0.56% | ▼ −4.53% | $330.09 (−13.63%) |
Jul 29, 2026 9w ago | 8-K | $380.96 $382.02 | ▲ +0.28% | ▼ −4.74% | $330.09 (−13.35%) |
Jul 21, 2026 10w ago | Court Ruling | $367.73 $393.48 | ▲ +7.00% | ▲ +4.44% | $330.09 (−10.24%) |
US Market Status
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