General Dynamics delivered a significant performance beat in the third quarter of 2026, with revenue and EPS exceeding analyst estimates. Growth was broad-based across all four segments, highlighted by a massive surge in defense orders that propelled the total backlog to a record $220.3 billion.
Key Highlights
- Total backlog reached a record $220.3 billion, driven by $93.8 billion in defense orders primarily for Virginia- and Columbia-class submarines.
- Marine Systems revenue surged 21.1% year-over-year to $4.96 billion, with segment operating earnings increasing 34.4% to $391 million.
- Aerospace operating margins expanded 120 basis points to 14.5% behind steady Gulfstream deliveries and a 1.4x book-to-bill ratio.
- Cash from operating activities reached $1.7 billion, representing 139% of net earnings for the quarter.