General Dynamics reported higher third-quarter 2026 revenue and earnings, with growth across all four business segments. The aerospace and defense company also recorded exceptionally strong orders, led by submarine contracts, lifting its backlog to $220.3 billion.
Key details
- Revenue was $14.6 billion, up 12.9% from the year-earlier quarter. Operating earnings rose 14.7% to $1.5 billion, while diluted earnings per share increased 15.7% to $4.49.
- Operating margin expanded to 10.5%, a 0.2-percentage-point increase from a year earlier.
- Orders totaled $98.8 billion: $93.8 billion across the defense segments and $5 billion in Aerospace. Large orders for Virginia- and Columbia-class submarines drove bookings in Marine Systems.
- The company’s book-to-bill ratio was 6.8 to 1 overall—meaning it received orders worth 6.8 times the revenue it recognized during the quarter. The ratio was 8.5 to 1 for the defense segments and 1.4 to 1 for Aerospace.
- Backlog reached $220.3 billion at quarter-end. General Dynamics also estimated $50.4 billion in potential additional value from unfunded contracts and unexercised options, bringing total estimated contract value to $270.7 billion.
- Operating cash flow was $1.7 billion, equal to 139% of net earnings. During the quarter, the company paid $429 million in dividends, spent $481 million on capital expenditures and reduced total debt by $500 million.
- General Dynamics ended the quarter with $7 billion in debt and $4.4 billion in cash and equivalents.
The quarter’s bookings substantially exceeded revenue, particularly in the defense businesses, while the backlog provides a large base of contracted and potential work. The company also returned cash to shareholders through dividends, invested in its operations and paid down debt.