General Dynamics Q3 profit rises 15.7% on Marine Systems growth

General Dynamics (GD) reported third-quarter 2026 diluted earnings of $4.49 per share, up 15.7% from a year earlier, as revenue rose 12.9% to $14.57 billion. The results were released on Oct. 30 for the quarter ended Oct. 4.

General Dynamics is a global aerospace and defense company with a broad portfolio of products and services in business aviation, ship construction and repair, land combat vehicles, weapon systems and munitions, and technology. It employs more than 120,000 people worldwide.

Operating earnings were $1.53 billion, up 14.7% from a year earlier. Operating margin was 10.5%, a 20-basis-point expansion from the year-ago quarter.

Here's how the company did:

• Revenue: $14.57 billion vs. $12.91 billion a year earlier
• Diluted EPS: $4.49 vs. $3.88 a year earlier
• Operating earnings: $1.53 billion vs. $1.33 billion a year earlier
• Net earnings: $1.23 billion vs. $1.06 billion a year earlier

Phebe Novakovic, chairman and chief executive officer, said: “Our business had exceptional third quarter results, with revenue growth across all four segments, robust bookings and solid operational performance.” She added that “with the consistent growth in our backlog and our significant investment in our businesses over the last decade, we are poised to drive continued performance in the years to come.”

Segment results

Marine Systems was the fastest-growing segment. Its revenue rose 21.1% to $4.96 billion, and its operating earnings rose 34.4% to $391 million.

Aerospace revenue rose 9.3% to $3.54 billion, and operating earnings rose 19.3% to $513 million. Technologies revenue rose 10.8% to $3.68 billion, and operating earnings rose 5.8% to $346 million.

Combat Systems revenue rose 6.0% to $2.39 billion. Its operating earnings fell 1.5% to $330 million.

Orders and backlog

The defense segments received $93.8 billion in orders, driven by large Marine Systems orders for Virginia- and Columbia-class submarines. Aerospace received $5 billion in orders, for a total of $98.8 billion.

Company-wide book-to-bill was 6.8-to-1. Backlog at the end of the quarter was $220.3 billion. Management estimates a further $50.4 billion of potential contract value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options, bringing total estimated contract value to $270.7 billion.

Cash and capital returns

Cash from operating activities was $1.7 billion, or 139% of net earnings. Free cash flow, a non-GAAP measure, was $1.23 billion, compared with $1.90 billion a year earlier.

During the quarter, the company paid $429 million in dividends, invested $481 million in capital expenditures and reduced total debt by $500 million. It ended the quarter with $7 billion in total debt and $4.4 billion in cash and equivalents.