General Dynamics Corp. (GD) 2Q26 First Take Solid quarter

Equity Research 29 July 2026 | 7:58AM EDT

General Dynamics Corp. (GD): 2Q26 First Take: Solid quarter

Bottom Line: GD 2Q26 results are ahead on key metrics. Revenue is above Noah Poponak, CFA | consensus, with strong growth at Gulfstream and Marine. Margins are slightly ahead, Goldman Sachs & Co. LLC with a 130bp yoy improvement at Gulfstream. Total segment EBIT is 6% above Connor Dessert consensus. Company reported Aerospace book-to-bill is 1.5X. GD did not provide | guidance in the release, as they usually provide on the earnings call. Goldman Sachs & Co. LLC

Nizar Mesani Details: 2Q26 EPS of $4.24 is above FactSet consensus at $3.96. Revenue of | $14.09bn is 4% above consensus. Segment EBIT is 6% above consensus. Free cash in Goldman Sachs India SPL the quarter is $1.65bn, compared to consensus at $0.47bn. Gulfstream delivered 41 Amanda Fenenbock, CFA | aircraft compared to 38 last year and 38 last quarter. Marine revenue is up 10% yoy, Goldman Sachs & Co. LLC and the Marine margin is 14bps ahead of consensus. Gulfstream margin is 14.5%, above consensus of 13.9%. Company stated Aerospace book-to-bill is 1.5X, change Tomas Russo | in backlog implied funded book-to-bill is 1.5X. Implied Aerospace TTM funded book Goldman Sachs & Co. LLC to bill is 1.3X. Aerospace funded backlog is up 9% sequentially, up 23% yoy. GD did not provide an update on guidance in the release.

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Goldman Sachs General Dynamics Corp. (GD)

Exhibit 1: GD 2Q26 variance table $mn except EPS

YoY change Actual GS Estimate $ Variance % Variance EPS Impact 2Q25 Growth REVENUE Aerospace 3,525 3, % 0.06 3,062 15.1% Combat Systems 2,290 2, % (0.05) 2,283 0.3% Marine Systems 4,660 4, % 0.05 4,220 10.4% Technologies 3,619 3,580 38.7 1.1% 0.01 3,476 4.1% Total sales 14,094 13, % $0.09 13,041 8.1%

OPERATING PROFIT Aerospace % % Combat Systems % (0.02) 324 -1.9% Marine Systems % % Technologies % 0.03 332 2.1% Segment Operating Profit 1,509 1,469 40.3 2.7% 0.12 1,350 11.8% Corporate expense (49) (44) (5.0) nm (0.02) (45) 8.9% Total Operating Profit 1,460 1,425 35.3 2.5% 0.11 1,305 11.9%

MARGIN Aerospace 14.5% 14.4% 10 bp 13.2% 130 bp Combat Systems 13.9% 13.4% 50 bp 14.2% -30 bp Marine Systems 7.3% 7.4% -10 bp 6.9% 40 bp Technologies 9.4% 9.2% 20 bp 9.6% -20 bp Segment Operating Margin 10.7% 10.6% 10 bp 10.4% 30 bp Total Operating Margin 10.4% 10.3% 10 bp 10.0% 40 bp

Net Interest expense ( % 0.10 (88) -44.3% Other (loss)/income, net ( % EBT 1,407 1,357 50.4 3.7% 1,232 14.2% Income tax expense ( % % Effective income tax rate 17.6% 17.8% -20 bp 17.7% -10 bp Net income continuing ops 1,160 1,115 44.9 4.0% 1,014 14.4% Diluted EPS, continuing $4.24 $4.07 $0.17 4.2% $0.17 $3.74 13.3% Diluted Shares % %

Source: Company data, Goldman Sachs Global Investment Research

Our 12-month $308 price target is derived from a sum of the parts based on comparable company valuations in each business segment. Key risks: 1) business jet market; 2) DoD spending priorities; 3) capital deployment.

GD 12m Price Target: $308.00 Price: $393.19 Downside: 21.7%

Sell GS Forecast 12/25 12/26E 12/27E 12/28E Market cap: $107.7bn Revenue ($ mn) 52,550.0 55,447.5 57,709.2 60,025.5 Enterprise value: $115.3bn EBITDA ($ mn) 6,280.0 6,748.1 7,092.2 7,456.2 3m ADTV: $456.5mn EBIT ($ mn) 5,356.0 5,820.1 6,170.2 6,530.2 United States EPS ($) Americas Aerospace & Defense P/E (X) M&A Rank: 3 EV/EBITDA (X) FCF yield (%) 4.9 4.3 4.7 5.0 Dividend yield (%) 2.0 1.6 1.7 1.8 Net debt/EBITDA (X) 0.9 0.7 0.7 0.6

3/26 6/26E 9/26E 12/26E EPS ($)

Source: Company data, Goldman Sachs Research estimates, FactSet. Price as of 28 Jul 2026 close.