Submarine boom powers General Dynamics to raise 2026 guidance

General Dynamics (GD) raised its 2026 earnings and revenue outlook after strong Q3 results. The company reported Q3 EPS of $4.49, beating estimates, and raised full-year EPS guidance to $17.2-$17.3. Management highlighted a record backlog of $220.3B, driven by marine systems and aerospace demand. GD expects 2026 revenues of $56.5-$56.8B with operating margins around 10.5%. The company plans to increase Gulfstream aircraft deliveries and maintain elevated capital spending.

RBC Capital raised its price target on General Dynamics (NYSE:GD) to $400 from $360, citing strong submarine segment performance. The company reported Q3 revenue of $14.57B, up 12.9%, and raised its 2026 guidance. Jefferies also increased its target to $455, noting record backlog and cash flow.

General Dynamics and Textron reported strong Q3 results, with revenue up 9.3% and 14% respectively. Both companies cited robust demand and supply chain challenges. General Dynamics' Aerospace division revenue was $3.54bn, while Textron Aviation reported $1.7bn in revenue. Both have healthy order backlogs, with Gulfstream at $25.4bn and Textron at $8bn. They are optimistic about demand despite macroeconomic concerns.

Jefferies raised its price target for General Dynamics (NYSE:GD) to $455 from $440, citing strong Q3 2026 earnings. Sales and profit exceeded expectations by 6%. Jefferies projects 2026 EPS of $17.35, above the company's guidance. GD's market cap is $100.5B, P/E ratio 22.75, and dividend yield 1.71%. The company raised its full-year profit outlook, with record orders and backlog.

General Dynamics Information Technology, Inc. (GD) received a $38M payment from the Department of Health and Human Services on 2026-10-29. The company has seen $5.15B in government contract awards over the past year. Insiders and institutional investors have recently traded GD shares, with notable sales by executives and mixed portfolio adjustments by hedge funds.

General Dynamics reported $98.8B in Q3 2026 orders, driven by submarine contracts, with revenue up 12.9% to $14.6B. Operating earnings rose 14.7% to $1.5B, and EPS increased 15.7% to $4.49. The company's backlog reached $220.3B, with a total estimated contract value of $270.7B. Cash from operations was $1.7B, and debt reduced by $500M.