$GD · GENERAL DYNAMICS CORP
General Dynamics reported Q3 2026 results with revenue of $14.566B (+12.9% YoY), diluted EPS of $4.49 (+15.7% YoY), and operating margin of 10.5% (+20 bps). Orders totaled $98.8B, producing a 6.8-to-1 book-to-bill ratio and pushing total backlog to $220.3B, more than double the prior-year figure, driven by massive Virginia- and Columbia-class submarine awards in Marine Systems.
- Revenue of $14.566B, up 12.9% YoY from $12.907B
- Diluted EPS of $4.49, up 15.7% from $3.88 in Q3 2025
- Total backlog surged to $220.3B from $109.9B a year ago, driven by Virginia- and Columbia-class submarine orders
- Cash from operations was $1.7B, representing 139% of net earnings
- Aerospace operating margin expanded to 14.5% from 13.3%, with Gulfstream delivering 40 aircraft vs. 39 last year
Markets closed — no regular-session reaction yet; extended-hours move not captured here. The $100.3B market-cap defense giant posted broad beats with a staggering 6.8-to-1 book-to-bill and backlog doubling YoY, which should draw strong investor attention.
A defense prime doubling its backlog in one year on the back of the Navy's submarine modernization program is a multi-decade revenue visibility event that reshapes the investment thesis.
The $220B backlog — more than 4x annual revenue — is heavily weighted toward the Marine Systems segment ($146.9B), reflecting the multi-decade Navy submarine buildout that benefits GD, HII, and the broader defense industrial base.
Combat Systems operating margin compressed to 13.8% from 14.9% YoY, and the segment posted a slight operating earnings decline of 1.5%. Free cash flow for the quarter fell to $1.229B from $1.897B in Q3 2025 due to higher capex.