General Dynamics (GD) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $14.566B, up 12.9% YoY; operating earnings rose 14.7% to $1.527B and diluted EPS increased 15.7% to $4.49.

• Growth spanned all four segments, with consolidated operating margin up 20 bps to 10.5%.

• Record backlog reached $220.339B, supported by $98.8B of Q3 orders and major submarine awards.

Financial highlights

• Q3 net earnings were $1.229B, up 16.1% YoY; operating margin was 10.5%, up 20 bps.

• 9M revenue rose 10.4% to $42.141B; operating earnings increased 12.9% to $4.407B, net earnings were $3.514B, and diluted EPS was $12.83, up 13.6%.

• 9M operating cash flow was $5.745B and free cash flow was $4.827B, versus $3.559B and $3.007B a year earlier.

Outlook and guidance

• FY2026 outlook: revenue of $56.5B–$56.8B, operating margin around 10.5%, diluted EPS of $17.20–$17.30 and net interest expense of approximately $215M.

• FY2026 free cash flow conversion is expected near 105%; Q4 capital-project timing could affect potential upside, with significant spending planned.

• Capital expenditures are expected at 3.5%–4% of sales in 2026; 2027 spending is expected to remain elevated, likely in a similar range.

• Technologies is expected to grow mid-single digits and Combat in the high single digits; Marine growth is expected to remain robust but below its recent pace.

• Gulfstream plans to deliver 200 aircraft in 2030, dependent on supplier capacity and demand.