General Dynamics Corporation Q3 2026 Earnings Recap

General Dynamics reported a solid quarter, with revenue up 12.9% year over year and a record backlog, while the shares rose 0.5% after earnings. Management said it would adjust its full-year forecast, but the transcript provided here does not include the updated outlook.

Key Takeaways

• Revenue was $14.57 billion, up 12.9% year over year; diluted EPS was $4.49, up 15.7%.
• Operating earnings rose 14.7%, and company operating margin improved 20 basis points to 10.5%.
• Nearly $99 billion in new orders lifted backlog to a record $220 billion, double the year-ago level; total estimated contract value was $271 billion.
• Operating cash flow was $1.7 billion in the quarter and more than $5.7 billion for the first nine months. Free cash flow was $1.2 billion in the quarter, with 100% cash conversion.
• The company expects full-year capital expenditures of 3.5%–4% of sales and free cash flow conversion around 105%; it cited potential upside to conversion depending on fourth-quarter project timing.