General Dynamics Q3 FY2026: revenue up 12.9%, EPS $4.49, backlog $220.3 billion
General Dynamics beat the $4.2502 EPS consensus with $4.49 and grew revenue 12.9% to $14.57 billion, so the quarter reads clean on both lines. What makes it unusual is orders: $98.8 billion booked in three months pushed backlog to $220.3 billion, a 6.8-to-1 book-to-bill. The one soft spot is cash, where free cash flow fell to $1.23 billion from $1.90 billion a year ago as capital spending more than doubled. We read this as a Bullish quarter on demand, with a capex caveat.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $4.49 came in $0.24 above the $4.2502 consensus, a 5.6% beat, and rose 15.7% from $3.88. Net earnings of $1.23 billion grew 16.1% while operating earnings of $1.53 billion grew 14.7%, so the bottom line outran the top line. Operating margin of 10.5% was a 20-basis-point expansion, helped by Aerospace at 14.5% and Marine Systems at 7.9%, partly offset by Combat Systems slipping to 13.8% from 14.9%.
Revenue of $14.57 billion rose 12.9% from $12.91 billion, and every segment grew: Marine Systems $4.96 billion (+21.1%), Technologies $3.68 billion (+10.8%), Aerospace $3.54 billion (+9.3%) and Combat Systems $2.39 billion (+6.0%). Marine Systems did the heavy lifting, adding $864 million of the $1.66 billion total increase. No revenue consensus figure was provided, so the comparison here is year-over-year only.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
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