General Dynamics Q1 2026 Earnings Beat Estimates

General Dynamics reported first-quarter 2026 earnings on April 29, driven by growth in Marine Systems and aerospace, along with strong cash conversion. The results lifted shares about 4.6% in premarket trading.

Quarterly Results and Cash Flow

For the quarter ended April 5, 2026, General Dynamics said in a press release that revenue rose 10.3% year over year to $13.5 billion, surpassing the Street consensus of $12.7 billion. Operating earnings increased 12% to $1.4 billion, while diluted earnings per share rose 12% to $4.10, beating estimates by $0.40 to $0.44 per share. The operating margin improved slightly to 10.5%.

An 8-K filing showed operating cash flow of $2.2 billion, equal to 192% of net earnings, and free cash flow of $1.95 billion after $203 million in capital expenditures. Net earnings were $1.13 billion. The company reduced net debt to $4.36 billion from $5.68 billion at year-end 2025, held $3.7 billion in cash and equivalents, and paid $405 million in dividends.

Shares rose to $328.02 per share in premarket trading following the announcement.

Orders, Backlog, and Segment Performance

General Dynamics reported quarterly orders of $26.6 billion, producing a consolidated book-to-bill ratio of 2-to-1. Defense segments posted a 2.2-to-1 ratio, while aerospace stood at 1.2-to-1. Total estimated contract value reached $188.4 billion, including a backlog of $130.8 billion and $57.6 billion in potential value from indefinite-delivery, indefinite-quantity (IDIQ) contracts and unexercised options.

Marine Systems led growth with revenue up 21% to $4.34 billion. Aerospace revenue increased 8.4% to $3.28 billion. Combat Systems and Technologies segments also contributed, with revenue rising 4.9% to $2.28 billion and 4.2% to $3.58 billion, respectively.

Phebe Novakovic, chairman and CEO, said, "Our businesses had a very good start to the year, delivering strong operating results and excellent cash conversion."