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General Dynamics Wins a $285M Deal to Provide Cybersecurity Services
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Key Takeaways
GD's GDIT won a $285M contract to deliver end-to-end cybersecurity services for Virginia's IT agency.
GD will deploy Eclipse Defensive Cyber and Everest Zero Trust, plus a 24/7 SOC with AI-led monitoring.
GD will support post-quantum cryptography, stronger encryption and AI threat detection across state systems.
General Dynamics Corp.’s (GD - Free Report) business unit, General Dynamics Information Technology (“GDIT”), recently won a $285 million contract to deliver cybersecurity services aimed at strengthening the Commonwealth of Virginia’s cybersecurity infrastructure.
Under the contract, GDIT will deploy its Eclipse Defensive Cyber and Everest Zero Trust Digital Accelerators to provide end-to-end cybersecurity services, including vulnerability management, zero-trust solutions and a 24/7 security operations center for the Virginia Information Technologies Agency.
To enhance security across the state’s digital infrastructure, GDIT will use artificial intelligence (AI) to automate security monitoring, integrate advanced cybersecurity tools and improve threat detection capabilities. The company will also support VITA’s post-quantum cryptography initiatives to protect sensitive data from future quantum computing risks, strengthen encryption standards and ensure a secure transition to quantum-resilient systems.
GD’s Proven Capabilities in Providing Cybersecurity Solutions
As defense sectors increasingly prioritize secure data transmission, contractors such as General Dynamics are seeing strong contract momentum, driven by demand for enhanced cybersecurity capabilities.
GDIT’s Everest Zero Trust solution offers a robust framework for secure data sharing and real-time identity and device management while leveraging advanced AI for proactive threat detection and analysis. It enables secure, real-time collaboration across agencies and partners, ensuring sensitive information is exchanged efficiently and safely, even in complex, multi-jurisdictional operations.
Meanwhile, its Eclipse Defensive Cyber solution delivers a comprehensive suite of strategies and technologies for real-time threat detection, advanced incident response and remediation, along with automated threat mitigation and continuous monitoring and reporting.
These capabilities position GDIT well to secure additional contracts similar to the latest award, supported by the expanding defense cybersecurity market, which is expected to drive its future revenue growth.
Growth Trajectory for GD and Other Defense Stocks
The defense cybersecurity market outlook remains strong, supported by the increasing frequency and sophistication of cyberattacks. To this end, per a report by Mordor Intelligence, the defense cybersecurity market is expected to witness a CAGR of 11.87% during 2025-2030.
Such a solid market prediction offers strong growth opportunities to General Dynamics, with its GDIT unit well-positioned to deliver agile and proactive cybersecurity solutions amid the evolving tactics and techniques used by threat actors.
Other defense contractors that are expected to enjoy the perks of the growing defense cybersecurity market are as follows:
Northrop Grumman Corp. (NOC - Free Report) : It delivers resilient, end-to-end cyber solutions across all domains, providing a decisive advantage by equipping cyber warfighters with both defensive and offensive capabilities to counter evolving threats. Its offerings include the Cyberdefense Platform for Weapon Systems, which uses advanced AI/ML techniques to detect threats within mission and weapon systems that are currently undetectable by traditional network-based IDS solutions.
NOC has a long-term (three to five years) earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales is pegged at $41.88 billion, which calls for a jump of 2.1%.
Lockheed Martin Corp. (LMT - Free Report) : It remains a leading defense technology provider, delivering comprehensive cyber systems to defense and global security customers. LMT’s MR2 platform supports the U.S. military’s digital transformation by providing real-time insights into workforce training and readiness.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales is pegged at $74.40 billion, which indicates a rise of 4.7%.
BAE Systems plc (BAESY - Free Report) : The company develops a portfolio of advanced cybersecurity technologies. Its offerings include one-way transfer devices, guards and Field Programmable Gate Arrays such as the XTS Diode Solution, which enables secure transfer of streaming data or files between networks.
BAESY boasts a long-term earnings growth rate of 14.57%. The Zacks Consensus Estimate for 2025 sales is pegged at $40.47 billion, which suggests an increase of 62%.
GD Stock Price Movement
In the past six months, shares of General Dynamics have risen 20.8% compared with the industry’s growth of 10.3%.
Image: Bigstock
General Dynamics Wins a $285M Deal to Provide Cybersecurity Services
Key Takeaways
General Dynamics Corp.’s (GD - Free Report) business unit, General Dynamics Information Technology (“GDIT”), recently won a $285 million contract to deliver cybersecurity services aimed at strengthening the Commonwealth of Virginia’s cybersecurity infrastructure.
Under the contract, GDIT will deploy its Eclipse Defensive Cyber and Everest Zero Trust Digital Accelerators to provide end-to-end cybersecurity services, including vulnerability management, zero-trust solutions and a 24/7 security operations center for the Virginia Information Technologies Agency.
To enhance security across the state’s digital infrastructure, GDIT will use artificial intelligence (AI) to automate security monitoring, integrate advanced cybersecurity tools and improve threat detection capabilities. The company will also support VITA’s post-quantum cryptography initiatives to protect sensitive data from future quantum computing risks, strengthen encryption standards and ensure a secure transition to quantum-resilient systems.
GD’s Proven Capabilities in Providing Cybersecurity Solutions
As defense sectors increasingly prioritize secure data transmission, contractors such as General Dynamics are seeing strong contract momentum, driven by demand for enhanced cybersecurity capabilities.
GDIT’s Everest Zero Trust solution offers a robust framework for secure data sharing and real-time identity and device management while leveraging advanced AI for proactive threat detection and analysis. It enables secure, real-time collaboration across agencies and partners, ensuring sensitive information is exchanged efficiently and safely, even in complex, multi-jurisdictional operations.
Meanwhile, its Eclipse Defensive Cyber solution delivers a comprehensive suite of strategies and technologies for real-time threat detection, advanced incident response and remediation, along with automated threat mitigation and continuous monitoring and reporting.
These capabilities position GDIT well to secure additional contracts similar to the latest award, supported by the expanding defense cybersecurity market, which is expected to drive its future revenue growth.
Growth Trajectory for GD and Other Defense Stocks
The defense cybersecurity market outlook remains strong, supported by the increasing frequency and sophistication of cyberattacks. To this end, per a report by Mordor Intelligence, the defense cybersecurity market is expected to witness a CAGR of 11.87% during 2025-2030.
Such a solid market prediction offers strong growth opportunities to General Dynamics, with its GDIT unit well-positioned to deliver agile and proactive cybersecurity solutions amid the evolving tactics and techniques used by threat actors.
Other defense contractors that are expected to enjoy the perks of the growing defense cybersecurity market are as follows:
Northrop Grumman Corp. (NOC - Free Report) : It delivers resilient, end-to-end cyber solutions across all domains, providing a decisive advantage by equipping cyber warfighters with both defensive and offensive capabilities to counter evolving threats. Its offerings include the Cyberdefense Platform for Weapon Systems, which uses advanced AI/ML techniques to detect threats within mission and weapon systems that are currently undetectable by traditional network-based IDS solutions.
NOC has a long-term (three to five years) earnings growth rate of 4.19%. The Zacks Consensus Estimate for 2025 sales is pegged at $41.88 billion, which calls for a jump of 2.1%.
Lockheed Martin Corp. (LMT - Free Report) : It remains a leading defense technology provider, delivering comprehensive cyber systems to defense and global security customers. LMT’s MR2 platform supports the U.S. military’s digital transformation by providing real-time insights into workforce training and readiness.
LMT has a long-term earnings growth rate of 11.94%. The Zacks Consensus Estimate for 2025 sales is pegged at $74.40 billion, which indicates a rise of 4.7%.
BAE Systems plc (BAESY - Free Report) : The company develops a portfolio of advanced cybersecurity technologies. Its offerings include one-way transfer devices, guards and Field Programmable Gate Arrays such as the XTS Diode Solution, which enables secure transfer of streaming data or files between networks.
BAESY boasts a long-term earnings growth rate of 14.57%. The Zacks Consensus Estimate for 2025 sales is pegged at $40.47 billion, which suggests an increase of 62%.
GD Stock Price Movement
In the past six months, shares of General Dynamics have risen 20.8% compared with the industry’s growth of 10.3%.
Image Source: Zacks Investment Research
GD’s Zacks Rank
General Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.