General Dynamics' Q2 Earnings Surpass Estimates, Revenues Improve Y/Y

General Dynamics CorporationGD reported second-quarter 2026 earnings of $4.24 per share, beating the Zacks Consensus Estimate of $3.95 by 7.3%. The bottom line increased 13.4% from $3.74 in the year-ago quarter, reflecting higher operating earnings and lower net interest expense.

Total Revenues of GD

Revenues of $14.09 billion surpassed the consensus mark of $13.49 billion by 4.5% and rose 8.1% year over year. Growth across all four segments, led by Aerospace and Marine Systems, supported the top line.

GD’s Segmental Performance

Aerospace revenues increased 15.1% year over year to $3.53 billion. Operating earnings surged 26.6% to $510 million. The operating margin expanded 130 basis points to 14.5%.

Marine Systems revenues advanced 10.4% to $4.66 billion. Operating earnings increased 17.5% to $342 million. The segment’s operating margin improved 40 basis points to 7.3%.

Combat Systems revenues were $2.29 billion, up 0.3% from the prior-year quarter. However, operating earnings declined 1.9% to $318 million, while the operating margin contracted 30 basis points to 13.9%.

Technologies revenues increased 4.1% year over year to $3.62 billion. Operating earnings improved 2.1% to $339 million. The operating margin declined 20 basis points to 9.4%.

Operational Highlights of GD

Operating earnings totaled $1.46 billion, up 11.9% from the year-ago quarter’s $1.31 billion.

Operating costs and expenses increased 7.7% year over year to $12.63 billion.

Interest expenses decreased 44.3% year over year to $49 million.

GD’s Backlog

General Dynamics recorded a total backlog of $186.9 billion. This includes a backlog of $136.5 billion and estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options of $50.4 billion.

Financial Condition of GD

As of July 5, 2026, cash and cash equivalents totaled $4.33 billion compared with $2.33 billion as of Dec. 31, 2025.

The long-term debt as of the same date was $6.26 billion compared with the 2025-end debt level of $7.01 billion.

During the first six months of 2026, cash generated by operating activities totaled $4.04 billion compared with $1.45 billion in the year-ago period.

GD’s Zacks Rank

GD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

RTX Corporation’s RTX second-quarter 2026 adjusted earnings per share (EPS) of $1.89 beat the Zacks Consensus Estimate of $1.66 by 13.9%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.56.

Revenues rose 14.5% year over year to $24.71 billion and outpaced the consensus mark of $22.83 billion by 8.2%.

Northrop Grumman CorporationNOC reported second-quarter 2026 adjusted earnings of $7.68 per share, which beat the Zacks Consensus Estimate of $6.84 by 12.3%. The bottom line, however, declined 5.8% from the year-ago quarter’s level of $8.15.

NOC’s total sales of $10.88 billion in the second quarter outperformed the Zacks Consensus Estimate of $10.80 billion by 0.7%. The top line also improved 5.1% from $10.35 billion reported in the year-ago quarter.

Textron Inc.TXT reported second-quarter 2026 adjusted earnings of $1.62 per share, which surpassed the Zacks Consensus Estimate of $1.52 by 6.6%. The bottom line also rose 4.5% from $1.55 in the year-ago quarter. 

The company reported total revenues of $3.83 billion, which beat the Zacks Consensus Estimate of $3.82 billion by 0.15%. The top line also increased 3% from the year-ago quarter’s level of $3.72 billion.

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