General Dynamics Reports Strong Q1 Results, Raises Guidance, and Boosts Backlog by $12.8 Billion
GD sits 29% above its 52-week low of $266.98.
Summary
General Dynamics reported strong first-quarter 2026 results with double-digit growth in revenue and earnings, significantly increased its total backlog, and raised full-year EPS guidance, demonstrating robust performance and a positive outlook.
Key Events · Earnings and Guidance · GD
-
Strong First Quarter Financial Performance
Revenue increased by 10.3% to $13.48 billion, and operating earnings rose by 12.0% to $1.42 billion compared to the prior-year period. Diluted EPS grew 12.0% to $4.10.
-
Full-Year EPS Guidance Raised
The company raised its full-year diluted earnings per share guidance to a range of $16.45 to $16.55, reflecting increased confidence in future performance.
-
Total Backlog Surges by $12.8 Billion
Total backlog reached $130.8 billion as of April 5, 2026, up from $118.0 billion at year-end 2025. This significant increase was primarily driven by a $15.4 billion award in the Marine Systems segment for Columbia-class submarine work.
-
Robust Cash Flow Generation
Net cash provided by operating activities was $2.16 billion in Q1 2026, a substantial improvement from a negative $148 million in Q1 2025. Free cash flow also turned positive at $1.95 billion, up from a negative $290 million in the prior year.
Analysis · GD · Manufacturing
This 10-Q filing provides comprehensive details confirming the strong first-quarter 2026 financial performance previously announced via an 8-K and news. The report highlights significant revenue and earnings growth across all segments, particularly Marine Systems, and a substantial increase in total backlog, driven by a major Columbia-class submarine award. The impressive turnaround in cash flow from operations and free cash flow, coupled with raised full-year EPS guidance and a dividend increase, underscores the company's robust operational execution and positive future outlook. Investors should note the strong demand for defense products and business jets, which is translating into solid financial results and enhanced long-term revenue visibility.
At the time of this filing, GD was trading at $344.06 on NYSE in the Manufacturing sector, with a market capitalization of approximately $93.2B. The 52-week trading range was $266.98 to $369.70. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.