AI Takeaway
General Dynamics delivered strong Q2 2026 results with revenue up 10.3% YoY to $13.48B, net income rising 13.2% to $1.13B, and operating cash flow surging to $2.16B from a prior-year outflow, reflecting broad-based business momentum.
Revenue
$13.48B
++10.29% YoY
Operating Income
$1.42B
++11.99% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue grew 10.3% YoY to $13.48B in Q2 2026 (vs. $12.22B in Q2 2025), indicating strong demand across General Dynamics' defense and aerospace segments. This growth rate accelerated meaningfully and reflects robust government defense spending and continued Gulfstream jet deliveries.
Source: Source: 10-Q Income Statement
Operating margin improved modestly to 10.53% from 10.37% in the prior year, suggesting the company maintained cost discipline even as revenue scaled. Operating income rose 12.0% to $1.42B, outpacing revenue growth and indicating positive operating leverage.
Source: Source: 10-Q Income Statement / Key Ratios
Operating cash flow surged to $2.16B in Q2 2026 from a negative $148M in Q2 2025, a YoY increase of over 1,556%. This dramatic reversal signals significantly improved working capital management and earnings quality, providing ample liquidity for capital allocation.
Source: Source: 10-Q Cash Flow Statement
2 more insights available
Upgrade to unlockGeneral Dynamics derives a substantial portion of its revenue from U.S. government defense contracts, making it highly sensitive to changes in defense appropriations, continuing resolutions, or budget sequestration. Any reduction in U.S. defense spending or delays in contract awards could materially impact revenue and backlog. This risk is elevated given ongoing federal budget debates.
Source: Source: 10-Q Risk Factors (inferred from business model and financial data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $4.10 versus the $3.79 analyst consensus — a +8.2% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $13.48B | $12.22B | +10.29% |
Operating Income | $1.42B | $1.27B | +11.99% |
Net Income | $1.13B | $994M | +13.18% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $59.03B | $57.25B | +3.11% |
Current Assets | $26.05B | $25.12B | +3.73% |
Current Liabilities | $18.82B | $18.76B | +0.35% |
Stockholders' Equity | $26.08B | $22.23B | +17.34% |
Cash & Equivalents | $3.65B | $1.24B | +194.20% |
Long-Term Debt | $6.26B | $7.26B | -13.79% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.15B | $-148M | +1556.08% |
Investing Cash Flow | $-202M | $-130M | -55.38% |
Financing Cash Flow | $-629M | $-175M | -259.43% |
Dividends Paid | $405M | $383M | +5.74% |
Share Buybacks | $217M | $600M | -63.83% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 10.5% | 10.4% | +0.16% |
Net Margin | 8.3% | — | — |
ROE | 4.3% | — | — |
ROA | 1.9% | — | — |
Current Ratio | $1.384 | — | — |
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General Dynamics reported strong Q2 2026 results with revenue of $13.48B (up 10.3% YoY), net income of $1.13B (up 13.2%), and operating income of $1.42B (up 12.0%). Operating cash flow surged to $2.16B compared to a $148M outflow in Q2 2025, reflecting significantly improved business execution.
The key takeaways from General Dynamics' Q2 2026 report are: double-digit revenue and profit growth, a dramatic cash flow turnaround, and a materially stronger balance sheet with cash nearly tripling to $3.65B and long-term debt declining 13.8% to $6.26B. Operating margin held steady above 10.5%, demonstrating cost discipline alongside growth.
Yes, General Dynamics grew revenue by 10.3% YoY to $13.48B in Q2 2026, up from $12.22B in Q2 2025. This growth reflects strong demand in its defense and aerospace segments, consistent with elevated U.S. and allied defense spending.
General Dynamics' financial health appears strong as of Q2 2026: the current ratio stands at 1.38x, long-term debt has been reduced to $6.26B (down 13.8% YoY), and cash on hand nearly tripled to $3.65B. Stockholders' equity grew 17.3% to $26.08B, and the company generated $2.16B in operating cash flow during the quarter.
General Dynamics paid $405M in dividends in Q2 2026, up 5.7% from $383M in Q2 2025, reflecting continued commitment to returning capital to shareholders. Share buybacks were reduced to $217M from $600M in the prior year, suggesting the company prioritized balance sheet strengthening and liquidity.