General Dynamics Reports Q3 2026 Financial Results

Executive Summary

General Dynamics Corporation filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) disclosing financial results for the third quarter ended October 4, 2026. The company demonstrated strong double-digit growth across revenue, operating earnings, and diluted EPS, supported by record quarterly order intake and backlog expansion.

Key Financial Highlights

• Revenue: Reached $14.566 billion, an increase of 12.9% compared to $12.907 billion in Q3 2025.
• Operating Earnings: Increased 14.7% year-over-year to $1.527 billion, resulting in an operating margin of 10.5% (up 20 basis points).
• Net Earnings & EPS: Net earnings rose 16.1% to $1.229 billion. Diluted earnings per share (EPS) grew 15.7% to $4.49 from $3.88 in the prior-year period.
• Cash Generation & Capital Allocation: Operating cash flow totaled $1.7 billion (139% of net earnings). The company distributed $429 million in dividends, deployed $481 million in capital expenditures, and reduced debt by $500 million, ending the period with $4.4 billion in cash and $7.0 billion in total debt.

Backlog and Bookings

• Orders Received: Totaled $98.8 billion across segments ($93.8 billion defense, driven by Virginia- and Columbia-class submarine contracts, and $5.0 billion aerospace).
• Book-to-Bill Ratio: 6.8-to-1 overall (8.5-to-1 defense, 1.4-to-1 aerospace).
• Backlog: Ending backlog stood at $220.3 billion, with total estimated contract value reaching $270.7 billion including unfunded IDIQ contracts and options.