RBC lifts General Dynamics price target to $400 after strong third‑quarter results

RBC Capital upgraded its price target for General Dynamics Corp. to $400 from $360, keeping a Sector Perform rating. The change follows the company's third‑quarter 2026 report showing revenue of $14.57 billion, a 12.9% year‑over‑year increase, and operating income of $1.53 billion with a 10.5% margin. Adjusted diluted earnings were $4.49 per share, beating expectations, and the firm raised its full‑year 2026 guidance. Jefferies also lifted its target to $455 after the earnings beat.

RBC says the higher target reflects the strength of the submarine segment and a record backlog, implying upside potential for shareholders. Jefferies' target increase reinforces the view that earnings may exceed the company's own guidance range.

  • 1RBC Capital raised its price target for General Dynamics to $400 from $360.
  • 2General Dynamics reported third‑quarter 2026 revenue of $14.57 billion, up 12.9% from the prior year.
  • 3Operating income for the quarter was $1.53 billion, representing a 10.5% margin.
  • 4Adjusted diluted earnings per share were $4.49, above the consensus estimate of $4.12.
  • 5Free cash flow in the quarter amounted to $1.23 billion.
  • 6Jefferies increased its price target to $455 from $440 after the earnings beat.

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