General Dynamics

General Dynamics is a US aerospace and defense company with four segments. Aerospace makes Gulfstream business jets and services them. Marine Systems builds nuclear submarines (Columbia-class and Virginia-class) and other ships for the US Navy, mostly at Electric Boat. Combat Systems makes land combat vehicles, weapons and munitions for the US and its allies.

Technologies sells IT services and mission systems to the US government. The US government is the largest customer, and most defense work runs on long contracts. In the first half of 2026, Marine Systems gave about 33% of revenue and Aerospace about 25%. The company had $52.6 billion of revenue in 2025 and more than 120,000 employees.

General Dynamics trades at a discount because the market doubts that its largest and fastest-growing business, submarines, can earn better margins, and because Gulfstream deliveries can move from quarter to quarter. Marine Systems had an operating margin of only 7.5% in the first nine months of 2026, against 14.7% for Aerospace, because the yards still pay for a larger workforce and late parts from single-source suppliers. The Navy's $76.6 billion award of July 29, 2026 for nine Virginia-class and five Columbia-class submarines secures volume, but the market waits to see if the new prices give higher margins. Gulfstream delivered 119 aircraft in the first nine months of 2026, toward its plan of about 160 for the year, but a planned production gap between the last G280 and the new G300 starts in 2027.

The CEO also changes on January 1, 2027. For the gap to close, Marine Systems margins must rise above the 2026 level as the new contracts start, Gulfstream must deliver about 160 aircraft in 2026 and guide to growth in 2027, and cash flow must stay near 105% of net income. The Q3 2026 report on October 30, 2026 passed the first test: backlog rose to $220.3 billion, the Marine Systems margin rose to 7.9% in the quarter, and the EPS outlook went up. The next test is the Q4 2026 report with the 2027 outlook, expected in late January 2027, the first under the new CEO.

If margins and deliveries hold, the gap can close over the next four to six quarters. The main risk is that supply chain and labor problems keep submarine margins low for years.

1. Oct 30, 2026Passed

   Q3 2026 results: backlog, Marine margin and Gulfstream deliveriesA large backlog increase from the submarine awards, a Marine Systems margin at or above 7.4% and a 2026 plan of about 160 Gulfstream deliveries pass; a lower delivery plan or lower EPS guidance fails.Outcome: Backlog rose to $220.3 billion, the Marine Systems margin was 7.9% in the quarter, and the company raised its 2026 EPS outlook to $17.20 to $17.30.
2. Jan 30, 2027 · est.Pending

   Q4 2026 results and 2027 outlook, first under the new CEOA 2027 outlook with higher Marine Systems margins and more Gulfstream deliveries passes; flat margins or fewer deliveries because of the G280 to G300 gap fail.
3. Mar 2027 · est.Pending

   Renewal of the $4 billion credit facilityA renewal or replacement before March 2027 on similar terms passes; no renewal fails.

Every passed and failed checkpoint across all picks

• October 30, 2026General Dynamics reported Q3 2026 results. Revenue was $14.6 billion, up 12.9%, and diluted EPS was $4.49, up 15.7%. Orders of $98.8 billion, mainly for Virginia-class and Columbia-class submarines, gave a book-to-bill of 6.8 to 1, and backlog rose to $220.3 billion. The Marine Systems operating margin was 7.9%, and Gulfstream delivered 40 aircraft. The company raised its 2026 outlook to revenue of $56.5 billion to $56.8 billion and diluted EPS of $17.20 to $17.30.
• October 9, 2026General Dynamics said it will hold its Q3 2026 earnings call on October 30, 2026.
• October 7, 2026The board elected President Danny Deep as CEO from January 1, 2027. Phebe Novakovic, Chairman and CEO, will become Executive Chairman.

Last earnings

October 30, 2026 (8-K on sec.gov)

Next earnings

Expected about January 30, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Oct 4, 2026Filed October 30, 2026 · gd-20261004
• 8-KEarnings releaseFiled October 30, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled October 8, 2026 · Read it on sec.gov
• 8-KChange of directors or officersFiled August 7, 2026 · Read it on sec.gov
• 8-KOther company newsFiled August 4, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jul 5, 2026Filed July 29, 2026 · gd-20260705
• 8-KEarnings releaseFiled July 29, 2026 · Press release and exhibits
• 8-KShareholder vote resultsFiled May 11, 2026 · gd-20260511
• 10-QQuarterly report for the period ended Apr 5, 2026Filed April 29, 2026 · gd-20260405
• 8-KEarnings releaseFiled April 29, 2026 · Press release and exhibits

Every filing on SEC EDGAR (CIK 40533)

• Submarine work has low margins. Marine Systems had an operating margin of 7.5% in the first nine months of 2026. Single-source suppliers of large parts and the need for more skilled workers slow the work. Much of the work runs on long contracts, so cost overruns can lower profit for years.
• Gulfstream deliveries can move between quarters, and each jet has a large value. Gulfstream delivered 40 aircraft in Q3 2026 and 119 in the first nine months. A planned production gap between the last G280, expected in Q2 2027, and the G300, expected in late 2027 or early 2028, can lower deliveries. Demand for business jets also falls in a weak economy.
• Most revenue comes from the US government. Changes to the defense budget, delays in funding, or a government shutdown can slow contracts and payments. The CEO said in July 2026 that the industry needs more funds for production.
• The CEO changes on January 1, 2027, when Danny Deep replaces Phebe Novakovic. Novakovic stays as Executive Chairman, and Deep has run large parts of the company, so the risk of a change in strategy is low.

General Dynamics had $7.07 billion of debt principal at October 4, 2026, down from $8.07 billion at December 31, 2025. It repaid $500 million of notes in June 2026 and $500 million in August 2026 from cash. Read more

Yield at the current rate

1.7% (current annual rate, at today’s price)

Dividend yield

1.7% (last 12 months, at today’s price of $367.22)

Paid per share

$6.27 in the last 12 months (4 payments)

Current annual rate

$6.36 ($1.59 × 4 a year)

Payout ratio

38% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

October 9, 2026, $1.59 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 6.5% a year. From 2015 to 2025, the dividend grew by about 8.2% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.