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General Dynamics (MX:GD)
:GD
Mexico Market
EarningsQ2 2026 Earnings Report

General Dynamics (GD) Q2 2026 Earnings Report

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MX:GD Q2 2026 EPS Results

Actual EPS$72.74
Consensus EPS$68.01
Beat/MissBeat by +$4.74
One Year Ago EPS$64.16

MX:GD Q2 2026 Revenue Results

Actual Revenue$241.80B
Expected Revenue$231.99B
Beat/MissBeat by +$9.81B
YoY Revenue Growth+8.07%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
MX:GD Upcoming Earnings
General Dynamics's next earnings date is estimated for October 28, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:GD Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call highlighted broad-based strength: robust revenue and earnings growth, record backlog (+32% YoY), strong order intake (book-to-bill >1 in all segments), exceptional cash generation and an increased full-year EPS outlook. Challenges include margin pressure in some businesses, increased planned capex and a sizeable pension contribution that will temper second-half cash flow, lingering single-source supply risks, and external budget/procurement timing uncertainty. On balance the positives—especially the backlog, cash conversion and raised guidance—substantially outweigh the negatives.
Company Guidance
Guidance: For full‑year 2026 General Dynamics now expects company revenue of about $55.7 billion, an operating margin of 10.5% and raised EPS to $16.80–$16.90; by segment the company forecasts Aerospace revenue ≈ $13.8B (≈160 Gulfstream deliveries) with a 14.7% margin (Q3 ~in line with Q2, stronger Q4), Combat revenue ≈ $9.8B with a 13.8% margin, Marine Systems revenue ≈ $18.0B with a 7.4% margin, and Technologies revenue ≈ $14.1B with a 9.4% margin. Capital and cash guidance includes full‑year capex of 3.5–4.0% of sales (Q2 capex $234M; H1 $437M) with capex weighted to H2, an expected free‑cash‑flow conversion of ~105% of net income (Q2 FCF $1.6B, H1 FCF $3.6B; Q2 cash conversion 142%, H1 >150%), a planned ~$500M pension contribution, >$500M of cash taxes weighted to H2, net interest expense of ~ $270M for the year, and a full‑year effective tax rate around 17.5% (H1 17.7%). Orders/backlog and liquidity: Q2 orders were just shy of $20B producing a company book‑to‑bill of 1.4x (Aerospace 1.5x; Combat Systems 2.1x), record backlog $136.5B (up 32% YoY) and total estimated contract value $186.9B; Q2 cash ≈ $4.3B and net debt ≈ $3.2B. Dividends in Q2 were ≈ $430M and share repurchases ≈ $100M.
Strong Quarterly Financial Results
Q2 revenue of $14.1B; operating earnings $1.460B; net earnings $1.160B; diluted EPS $4.24. Year-over-year revenue +8.1%, operating earnings +~12%, net earnings +14.4%, EPS +13.4% ($0.50). Company operating margin 10.4%, up 40 bps YoY.
Beating Street Expectations and Raised Full-Year EPS Guidance
Beat consensus by $0.28 in the quarter. Increased 2026 EPS guidance to $16.80–$16.90 (previously $16.45–$16.55) with company revenue guidance of ~$55.7B and operating margin expected at 10.5%.
Record Order Activity and Backlog Growth
Nearly $20B of orders in the quarter; company book-to-bill 1.4x; all four segments >1.0 book-to-bill. Aerospace book-to-bill 1.5x; Combat Systems 2.1x. Record backlog $136.5B, up 32% YoY; total estimated contract value $186.9B.
Outstanding Cash Generation and Conversion
Operating cash flow $1.9B in Q2 and >$4B in H1. Free cash flow $1.6B in Q2 with cash conversion 142%; H1 free cash flow $3.6B with conversion >150%. Now expect full-year free cash flow conversion ~105% of net income.
Improved Balance Sheet and Lower Net Debt
Ended the quarter with ~$4.3B cash and net debt $3.2B, down $1.2B from prior quarter. Paid dividends ~$430M and repurchased ~$100M of shares (to cover dilution); repaid $500M of notes in June.
Aerospace Operational and Order Momentum
Aerospace revenue $3.5B (+15.1% YoY, +$463M) and operating earnings $510M with 14.5% margin (130 bps improvement YoY). Delivered 41 aircraft (3 more YoY and sequential) and 1.5x book-to-bill with 16 more airplane orders YoY.
Marine Systems Productivity and Revenue Growth
Marine revenue growth 10.4% YoY led by Columbia and Virginia programs; operating earnings up 17.5% with a 40-bp margin improvement. Notable operational gains: Bath accelerated a DDG-51 delivery nearly 3 months; Electric Boat hours earned up 37% YTD and sequence-critical material deliveries +65% YoY.
Defense Combat Demand and Strong Order Intake
Combat Systems revenue $2.3B; book-to-bill 2.1x driven by international demand and large awards (e.g., ACSVs for Canada). Munitions (OTS) and wheeled/tracked vehicle demand remain strong.
Technologies Momentum and GDIT Wins
Technologies revenue $3.6B (+4.1% YoY) and operating earnings $339M (+2.1% YoY) with book-to-bill 1.1x (1.3x TTM). GDIT won more OTA awards in H1 2026 than all of 2025; international portfolio up >35% since 2024.

MX:GD Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 28, 2026
2026 (Q3)
70.73 / -
66.566
2026 (Q2)
68.01 / 72.74
64.16413.37% (+8.58)
2026 (Q1)
63.05 / 70.34
62.79212.02% (+7.55)
2025 (Q4)
70.58 / 71.54
71.1980.48% (+0.34)
2025 (Q3)
63.48 / 66.57
57.47315.82% (+9.09)
2025 (Q2)
60.85 / 64.16
55.92914.72% (+8.23)
2025 (Q1)
59.96 / 62.79
49.4127.08% (+13.38)
2024 (Q4)
69.79 / 71.20
62.44914.01% (+8.75)
2024 (Q3)
59.86 / 57.47
52.15510.20% (+5.32)
2024 (Q2)
56.22 / 55.93
46.32220.74% (+9.61)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed