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AI Takeaway
In 2026-Q3, General Dynamics achieved revenue of $14.09B (up 8.1% YoY) and operating earnings of $1.46B (up 11.9% YoY), driven by strong performance in Aerospace and Marine Systems and supported by a total backlog of $136.5B.
Filed · Source: SEC EDGAR 10-Q filing
General Dynamics reported 8.1% YoY revenue growth to $14.09B in 2026-Q3, supported by strong Aerospace deliveries and expanded total backlog of $136.5B.
Last 4 quarters: 3 beats, 1 miss
Aerospace revenue grew 15.1% YoY to $3.53B in 2026-Q3, with operating earnings surging 26.6% to $510M and margins expanding 130 bps to 14.5%, driven by 41 Gulfstream deliveries and a 1.5-to-1 book-to-bill ratio. Full-year 2026 segment guidance projects revenue of approximately $13.8B with an operating margin of approximately 14.7%.
Source: 10-Q Item 2 MD&A, p.30
Marine Systems revenue rose 10.4% YoY to $4.66B, while operating earnings grew 17.5% to $342M (7.3% margin), supported by increased Columbia-class submarine construction volume and John Lewis-class fleet replenishment oiler throughput. Management expects full-year 2026 segment revenue of approximately $18B with a 7.4% margin.
Source: 10-Q Item 2 MD&A, p.31
Total backlog reached $136.5B at the end of 2026-Q3, up from $130.8B in the previous quarter, pushing total estimated contract value to $186.9B. Defense segments recorded a book-to-bill ratio of 1.4-to-1 for the quarter and 1.8-to-1 for the first six months.
Source: 10-Q Item 2 MD&A, p.35-37
Operating cash flow for the first six months of 2026 reached $4.04B (177% of net earnings), up from $1.45B in the prior-year period. Free cash flow expanded to $3.60B (157% of net earnings) after funding $437M in capital expenditures.
Source: 10-Q Item 2 MD&A, p.37-38
Heightened demand for Navy shipbuilding and international military vehicles places stress on the defense industrial base and supply chain. Supply chain delays, including Middle East conflict disruptions affecting an Israel-based supplier of mid-cabin airframes, could impact delivery timelines.
Source: 10-Q Item 2 MD&A, p.27-28
Reallocations in U.S. Army funding priorities lead to volume reductions in U.S. military vehicles, including the termination of the M10 Booker program, which contributed to a $126M quarterly decrease in U.S. military vehicle revenue.
Source: 10-Q Item 2 MD&A, p.27, 32
Ongoing international sanctions against Russia continue to restrict access to a segment of the commercial business jet market, while broad geopolitical conflicts present operational risks to international program execution.
Source: 10-Q Item 2 MD&A, p.28
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
In 2026-Q3, General Dynamics generated total revenue of $14.09B, an 8.1% increase from $13.04B in the prior-year period. Operating earnings rose 11.9% to $1.46B, expanding the company's operating margin by 40 basis points YoY to 10.4%.
Aerospace segment revenue increased 15.1% YoY to $3.53B in 2026-Q3, while operating earnings surged 26.6% to $510M. Growth was powered by 41 Gulfstream aircraft deliveries (up from 38) and a strong book-to-bill ratio of 1.5-to-1.
General Dynamics ended 2026-Q3 with a total backlog of $136.5B, up from $130.8B at the end of the previous quarter. Total estimated contract value, including unexercised options and IDIQ contracts, reached $186.9B.
General Dynamics highlighted operational risks including pressure on the shipbuilding industrial base and supply chain, as well as supplier delays stemming from Middle East conflicts. Additionally, U.S. Army budget realignments led to program terminations such as the M10 Booker, reducing U.S. military vehicle revenue.
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.
General Dynamics (GD) delivered strong FY2025 results with revenue growing 10.1% to $52.6B, net income rising 11.3% to $4.2B, and operating cash flow surging 24.5% to $5.1B, reflecting broad-based strength across its defense and aerospace businesses.
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