General Dynamics Corp (NYSE:GD, XETRA:GDX) reported first quarter 2026 results on Wednesday that topped Wall Street expectations for both earnings and revenue, driven by strength in its Marine Systems and Aerospace segments.
Shares rose about 11% to about $349 following the release.
The defense contractor posted revenue of $13.5 billion for the quarter ended April 5, up 10.3% from a year earlier and above analysts’ estimates of $12.71 billion.
Diluted earnings per share rose 12% to $4.10, beating expectations of $3.68.
Net income benefited from broad-based growth across all four business segments, with operating earnings rising to $1.4 billion and operating margin holding at 10.5%.
Marine Systems revenue increased 21% year over year, supported by improved productivity as the unit continues recovering from earlier supply chain disruptions and labor constraints. The segment is also expected to benefit from longer-term US naval procurement plans, including proposed shipbuilding activity tied to the fiscal 2027 defense budget request.
In the Aerospace segment, revenue rose 8.4%, driven by higher Gulfstream business jet production and steady aftermarket demand. Aircraft deliveries increased to 38 units from 36 a year earlier. The company also noted continued progress in certification activity for its newer Gulfstream models.
General Dynamics reported strong order momentum during the quarter, with total bookings of $26.6 billion and a consolidated book-to-bill ratio of 2-to-1. Total estimated contract value stood at $188.4 billion at quarter-end, including $130.8 billion in backlog.
Cash flow from operating activities totaled $2.2 billion, representing 192% of net earnings.
The company returned capital to shareholders through $405 million in dividends and invested $203 million in capital expenditures, ending the quarter with $3.7 billion in cash and equivalents.
“Our businesses had a very good start to the year, delivering strong operating results and excellent cash conversion,” General Dynamics CEO Phebe Novakovic said in a statement. “We are positioned well to drive additional performance throughout the year.”