General Dynamics Corporation (GD) AI Stock Analysis

General Dynamics Corporation operates globally across four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. Its Aerospace segment manufactures business jets and delivers aircraft maintenance, repair, management, charter, and aircraft-on-ground support services. The Marine Systems segment designs and constructs nuclear-powered submarines, surface combatants, and auxiliary ships for the United States Navy, as well as Jones Act commercial vessels such as tankers and cargo ships. Combat Systems manufactures land combat solutions, including wheeled and tracked combat vehicles, Stryker vehicles, main battle tanks, weapons systems, and munitions, while providing sustainment solutions. The Technologies segment rounds out its comprehensive offerings.

Revenue expanded from $38.47B in FY2021 to $52.55B in FY2025, representing a 5-year revenue CAGR of 6.7%. Annual revenue growth reached 1.4% in FY2021, 2.4% in FY2022, 7.3% in FY2023, 12.9% in FY2024, and 10.1% in FY2025. Operating margin was 10.8% in FY2021, 10.7% in FY2022, 10.0% in FY2023, 10.1% in FY2024, and 10.2% in FY2025. Net income increased from $3.26B in FY2021 to $4.21B in FY2025, with EPS climbing from $11.55 to $15.45. For the latest quarter ended June 30, 2026, quarterly revenue growth was 8.1% year-over-year, while quarterly earnings growth reached 13.4%.

As of June 30, 2026, General Dynamics held $4.33B in cash and short-term investments against total debt of $9.48B, yielding net debt of $5.15B. Shareholders' equity stood at $26.83B on total assets of $60.16B, resulting in a debt-to-equity ratio of 0.35 and a current ratio of 1.44. In FY2025, the company generated $5.12B in operating cash flow and $3.96B in free cash flow. Capital allocation in FY2025 included $1.16B for capital expenditures, $1.59B in dividends paid, and $637.0M used for share buybacks.

General Dynamics trades at a trailing P/E of 21.0x and a forward P/E of 18.5x, below the median of its S&P 500 Industrials peers of 28.5x and 20.7x, respectively. Its enterprise value stands at $98.05B, with an EV-to-EBITDA multiple of 14.6x compared to 17.7x for its peer median. The stock's price-to-sales ratio is 1.7x versus the peer median of 3.3x. Over the past year, the stock returned 6.0%, trailing the S&P 500 return of 16.8%, while its 5-year return of 83.5% slightly outpaced the index return of 83.0%.

General Dynamics pays an annual forward dividend of $6.36 per share, representing a dividend yield of 1.85% and a payout ratio of 38.3%. Dividends are distributed on a quarterly frequency and have been paid for 48 consecutive years. Over the last 5 years, dividend growth annualized at 6.5%. The last ex-dividend date was October 9, 2026.

Wall Street coverage consists of 10 Strong Buy, 4 Buy, 9 Hold, 0 Sell, and 1 Strong Sell recommendations. The mean price target is $406.78, indicating 18.2% upside relative to the last close of $344.23. Analysts project FY2026 revenue of $55.92B with EPS of $17.00, representing 10.0% earnings growth. For FY2027, 18 analysts anticipate revenue of $58.61B and EPS of $18.64. The company recorded 4 EPS beats over the last 4 quarters, with its next earnings date scheduled for October 30, 2026.

This page is an AI-written research summary of General Dynamics Corporation (GD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: GD income statement, GD balance sheet, GD key metrics, GD analyst forecast, GD chart. See the GD stock overview for the latest quote and news.