$GD · GENERAL DYNAMICS CORP
General Dynamics reported Q3 FY2026 (ended October 4, 2026) with revenue of $14.57B (+12.9% YoY), net earnings of $1.23B, and diluted EPS of $4.49 vs $3.88 a year ago. Operating margin improved 20 bps to 10.5%. All four segments — Aerospace, Marine Systems, Combat Systems, and Technologies — posted revenue growth, led by Marine Systems at +21.1% on nuclear submarine programs. Nine-month operating cash flow reached $5.75B, nearly double the prior-year period.
- Q3 revenue $14.57B, up 12.9% YoY, with growth across all four operating segments.
- Diluted EPS $4.49 vs $3.88 a year ago, a 15.7% increase.
- Operating margin expanded 20 bps to 10.5%, driven by Marine Systems and Aerospace.
- Marine Systems revenue surged 21.1% YoY to $4.96B on nuclear-powered submarine programs.
- Nine-month operating cash flow nearly doubled to $5.75B from $3.56B a year ago.
GD shares are down 0.62% since filing at $373.19, a modest fade on what appears to be a clean beat across revenue, earnings, and margins — suggesting the strong quarter was largely priced in for this $101B defense giant.
GD's broad-based growth across all four segments and near-doubling of operating cash flow to $5.75B signal strong execution on the Navy's submarine build-out and Gulfstream demand.
GD's 12.9% revenue growth outpaces most defense primes, with Marine Systems benefiting from the Columbia-class and Virginia-class submarine build-up — a multi-decade Navy priority that peers like HII also ride.
A large international tracked-vehicle contract includes variable consideration that could be realized below current estimates, with a material unfavorable impact possible. Foreign currency translation losses of $301M over nine months also pressured comprehensive income.