General Dynamics (GD)
NYSEIndustrialsAerospace & DefenseSnapshot 2026-07-08
$374.25-0.10%
Close 2026-07-08 · 1-day change
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Track GD free→Warn: Management is running behind on a stated commitment.
General Dynamics benefits from strong submarine and Navy backlogs. EPS guidance for 2026 is $4.1 per share. The company has a solid profit margin with a PE of 23.6, cheaper than peers. Cash flow focus supports financial stability.
Cash from operating activities was negative $619 million in Q4 2025. EPS growth is modest and may struggle to exceed guidance. Defense sector headwinds could pressure revenue growth.
The price is about 2% below our fair value near $386, reflecting roughly 5% revenue growth. Our fair value aligns with the Street median but is slightly more conservative.
Breaks if: Cash from operating activities remains negative over next 4 quarters
Maintain a strong focus on cash conversion to support financial stability.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 2 of last 2 quarters. Cash from operating activities was -$619M in 2025-Q4, indicating challenges in cash conversion despite management's focus. Persistent statement, limited substantive delivery this quarter.
“Our businesses had a very good start to the year, delivering strong operating results and excellent cash conversion.”
“We continue to focus on strong cash conversion to support our operations.”
Breaks if: EPS falls below $4.1 per share in FY26
Provide and meet EPS guidance for fiscal year 2026 to align with investor expectations.
Stated in 2 of last 2 quarters. EPS guidance for fiscal year 2026 is $4.1 per share. Previous quarter's EPS was $3.88, indicating a need for improvement to meet guidance. Recurring focus, narrow delivery so far.
“Our EPS guidance for fiscal year 2026 is set at $4.1 per share.”
“We are targeting an EPS of $3.88 for the quarter.”
Breaks if: Revenue growth falls below ~4.9% YoY next year