| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 53 | 21.6x | 17.8x | Around median | |
Growth | 64 | 9.1% | 7.1% | Around median | |
Quality | 68 | 13.1% | 4.5% | Top tier | |
Safety | 80 | 1.0x | 2.6x | Top tier | |
Capital Return | 46 | 1.66% | 2.12% | Around median | |
Momentum | 65 | 22.7% | 2.9% | Around median | |
Sentiment | 61 | 16 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
General Dynamics operates through four business segments spanning business aviation, marine and land defense, and government technologies. The Aerospace segment includes Gulfstream and Jet Aviation and generates revenue from aircraft deliveries and aviation services, while Marine Systems builds Columbia and Virginia submarines, DDG-51 ships, and support vessels. Combat Systems includes armored vehicles, munitions, and missile components, while Technologies, through Mission Systems and GDIT, provides mission systems, information technology, cybersecurity, and artificial intelligence services to government agencies.
In Q2 fiscal 2026, revenue was $14.1 billion, up 8.1% year over year, operating profit was $1.460 billion, and net income was $1.160 billion. Diluted earnings per share rose 13.4% to $4.24, exceeding analyst consensus by $0.28, and operating margin improved by 40 basis points to 10.4%. During the first half of fiscal 2026, revenue reached $27.6 billion, up 9.1%, and operating profit rose 11.9% to approximately $2.9 billion.
Aerospace led the segment mix with revenue of $3.5 billion and an operating margin of 14.5%, after delivering 41 aircraft and increasing revenue by 15.1%. Technologies recorded revenue of $3.6 billion and a margin of 9.4%, while Combat Systems generated revenue of $2.3 billion and a margin of 13.9%. The call did not disclose a standalone revenue figure for Marine Systems, but it reported that its revenue grew 10.4% and operating earnings rose 17.5%, supported by the Columbia and Virginia programs and improved shipyard productivity.
The average analyst price target is $420.71, with a “Buy” consensus and a wide target range of $384 to $465. The average is approximately 5.2% above the upper end of the 52-week range of $400, but the lowest target falls within the annual range of $306.77 to $400, reflecting clear disagreement over how much improvement can be justified by the record backlog and higher fiscal 2026 guidance. The available data do not include a valid earnings multiple that can be used to confirm whether the valuation is low or high on an earnings basis.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
General Dynamics reported revenue of $14.1 billion in Q2 fiscal 2026, up 8.1% year over year. Net income was $1.160 billion and diluted earnings per share were $4.24, exceeding analyst consensus by $0.28. Operating profit also rose approximately 12% to $1.460 billion, and operating margin improved by 40 basis points to 10.4%.
Management expects consolidated revenue of approximately $55.7 billion and an operating margin of 10.5% in fiscal 2026. It raised the earnings-per-share range to $16.80–$16.90, compared with the range of $16.45–$16.55 announced in April 2026. At the segment level, it expects $13.8 billion for Aerospace, $9.8 billion for Combat, $18 billion for Marine Systems, and $14.1 billion for Technologies.
The company ended Q2 fiscal 2026 with a record backlog of $136.5 billion, up 32% from the comparable period. Quarterly orders totaled approximately $20 billion, producing a book-to-bill ratio of 1.4 times, while the ratio exceeded one in all four segments. Total estimated contract value, including options and IDIQ contracts, reached $186.9 billion, expanding the potential business base beyond directly funded backlog.
Automated analysis for informational purposes only — not investment advice.
Aerospace generated revenue of $3.5 billion, operating profit of $510 million, and a margin of 14.5% in Q2 fiscal 2026. Gulfstream delivered 41 aircraft, up three aircraft from the comparable period, and higher service revenue at Gulfstream and Jet Aviation contributed to the segment's 15.1% revenue growth. The book-to-bill ratio was 1.5 times, while management is targeting deliveries of approximately 160 Gulfstream aircraft during fiscal 2026.
On August 7, 2026, GDIT secured a $1.3 billion contract to support network operations and cybersecurity for the U.S. National Guard. The work includes operating, modernizing, and protecting classified and unclassified networks, as well as developing data analytics and artificial intelligence capabilities. The contract consists of a one-year base period and six annual extension options, giving it the potential to support Technologies revenue for several years if the options are exercised.
Risks include continued extended procurement cycles in information technology services and the dependence of major defense programs on the timing of government budgets and contracts. In Marine Systems, supply chains have improved, but complex, single-source components may still slow production, while expansion requires capital investment and the hiring of thousands of workers. In Aerospace, there is a planned production gap between the final G280 delivery in Q2 fiscal 2027 and the expected start of the G300 in late 2027 or early 2028.
