General Dynamics Q2 Earnings: $4.24 EPS Beats, Backlog Hits $136.5B

summarizeSummary

General Dynamics reported Q2 2026 earnings that beat expectations, with revenue up 8.1% to $14.1B and EPS of $4.24 versus $3.96 consensus. Backlog reached a record $136.5B, and operating cash flow was $1.9B.

check_boxKey Events · Earnings and Guidance · GD

• Q2 Earnings Beat

  Revenue of $14.1B (+8.1% YoY) and diluted EPS of $4.24 (+13.4% YoY) exceeded consensus estimates of $13.9B and $3.96, respectively.

• Record Backlog

  Total backlog reached $136.5B, up from $103.7B a year ago, with a company-wide book-to-bill ratio of 1.4x, indicating strong future revenue visibility.

• Margin Expansion

  Operating margin improved to 10.4% from 10.0% a year ago, driven by Aerospace (14.5% vs. 13.2%) and Marine Systems (7.3% vs. 6.9%).

• Strong Cash Generation

  Operating cash flow was $1.9B, or 162% of net earnings, enabling $498M in debt reduction, $429M in dividends, and $234M in capex.

auto_awesomeAnalysis · GD · Manufacturing

A strong second quarter saw General Dynamics beat consensus on both the top and bottom lines. Revenue climbed 8.1% to $14.1 billion, while diluted EPS of $4.24 handily exceeded the $3.96 consensus. Operating margin expanded 40 basis points to 10.4%, fueled by double-digit growth in Aerospace and Marine Systems. The backlog swelled to $136.5 billion, and a 1.4x book-to-bill ratio signals robust demand across all segments. Cash generation was exceptional, with operating cash flow covering 162% of net earnings, enabling debt reduction and continued shareholder returns. This performance reinforces the company's position amid rising global defense spending, though the stock is already trading near its 52-week high, suggesting much of the good news may be priced in.