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General Dynamics to Post Q1 Earnings: What's in Store for the Stock?
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Key Takeaways
General Dynamics Q1 results may reflect gains from record backlog and strong defense demand.
GD's Aerospace unit likely saw higher Gulfstream G700 and G800 deliveries boost revenues.
Marine and Combat Systems growth might have been offset by supply-chain delays pressuring margins.
General Dynamics (GD - Free Report) is scheduled to release first-quarter 2026 results on April 29, before market open. The company delivered an earnings surprise of 1.5% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors Likely to Influence GD’s Q1 Results
General Dynamics’ bottom-line performance is expected to have benefited from record backlog and strong book-to-bill ratios across segments, providing high revenue visibility in the to-be-reported quarter. The defense business is likely to have gained from sustained global demand, including rising European military spending and U.S. naval programs.
Strong demand for combat vehicles must have boosted the Combat Systems unit’s revenue performance in the first quarter. Solid demand for artillery and munitions products is also expected to have contributed favorably to this segment’s top line.
General Dynamics’ Aerospace unit might have gained from higher deliveries of Gulfstream aircraft, particularly increased shipments of the G700 and G800 models. This should have boosted the quarterly top line.
The Marine Systems unit’s quarterly revenues are expected to have gained from the ongoing ramp-up of submarine programs, such as Electric Boat. First-quarter performance is expected to have improved further on the back of productivity gains from earlier capital investments that are now translating into higher throughput and improved efficiency across shipyards.
However, the profitability might have been affected by ongoing global supply-chain disruptions, leading to production delays.
GD’s Q1 Expectations
The company expects earnings to be below the quarterly run rate, roughly 40 cents lower than a normalized $4 EPS baseline. The Zacks Consensus Estimate for earnings is pegged at $3.68 per share, indicating a year-over-year increase of 0.6%.
The Zacks Consensus Estimate for revenues is pinned at $12.70 billion, implying a year-over-year improvement of 3.9%.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for General Dynamics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
General Dynamics Corporation Price and EPS Surprise
Earnings ESP: The company’s Earnings ESP is +0.51%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Investors may also consider the following players from the same industry as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Textron (TXT - Free Report) is likely to come up with an earnings beat when it announces first-quarter results on April 30, before market open. It has an Earnings ESP of +0.58% and a Zacks Rank #2 at present.
The consensus estimate for TXT’s first-quarter sales suggests an improvement of 6.5% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 5.3% for the trailing four quarters.
L3Harris Technologies (LHX - Free Report) is expected to come up with an earnings beat when it reports first-quarter results on April 30, before market open. It has an Earnings ESP of +1.29% and a Zacks Rank #3 at present.
The consensus estimate for LHX’s first-quarter sales implies an improvement of 5.7% from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pinned at $2.53 per share, indicating year-over-year growth of 5%.
Huntington Ingalls Industries (HII - Free Report) is likely to come up with an earnings beat when it announces first-quarter results on May 5, before market open. It has an Earnings ESP of +2.69% and a Zacks Rank #3 at present.
The consensus estimate for HII’s first-quarter sales suggests an improvement of 10.4% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 17.7% for the trailing four quarters.
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General Dynamics to Post Q1 Earnings: What's in Store for the Stock?
Key Takeaways
General Dynamics (GD - Free Report) is scheduled to release first-quarter 2026 results on April 29, before market open. The company delivered an earnings surprise of 1.5% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Key Factors Likely to Influence GD’s Q1 Results
General Dynamics’ bottom-line performance is expected to have benefited from record backlog and strong book-to-bill ratios across segments, providing high revenue visibility in the to-be-reported quarter. The defense business is likely to have gained from sustained global demand, including rising European military spending and U.S. naval programs.
Strong demand for combat vehicles must have boosted the Combat Systems unit’s revenue performance in the first quarter. Solid demand for artillery and munitions products is also expected to have contributed favorably to this segment’s top line.
General Dynamics’ Aerospace unit might have gained from higher deliveries of Gulfstream aircraft, particularly increased shipments of the G700 and G800 models. This should have boosted the quarterly top line.
The Marine Systems unit’s quarterly revenues are expected to have gained from the ongoing ramp-up of submarine programs, such as Electric Boat. First-quarter performance is expected to have improved further on the back of productivity gains from earlier capital investments that are now translating into higher throughput and improved efficiency across shipyards.
However, the profitability might have been affected by ongoing global supply-chain disruptions, leading to production delays.
GD’s Q1 Expectations
The company expects earnings to be below the quarterly run rate, roughly 40 cents lower than a normalized $4 EPS baseline. The Zacks Consensus Estimate for earnings is pegged at $3.68 per share, indicating a year-over-year increase of 0.6%.
The Zacks Consensus Estimate for revenues is pinned at $12.70 billion, implying a year-over-year improvement of 3.9%.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for General Dynamics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.
General Dynamics Corporation Price and EPS Surprise
General Dynamics Corporation price-eps-surprise | General Dynamics Corporation Quote
Earnings ESP: The company’s Earnings ESP is +0.51%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, the company carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Other Stocks to Consider
Investors may also consider the following players from the same industry as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Textron (TXT - Free Report) is likely to come up with an earnings beat when it announces first-quarter results on April 30, before market open. It has an Earnings ESP of +0.58% and a Zacks Rank #2 at present.
The consensus estimate for TXT’s first-quarter sales suggests an improvement of 6.5% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 5.3% for the trailing four quarters.
L3Harris Technologies (LHX - Free Report) is expected to come up with an earnings beat when it reports first-quarter results on April 30, before market open. It has an Earnings ESP of +1.29% and a Zacks Rank #3 at present.
The consensus estimate for LHX’s first-quarter sales implies an improvement of 5.7% from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pinned at $2.53 per share, indicating year-over-year growth of 5%.
Huntington Ingalls Industries (HII - Free Report) is likely to come up with an earnings beat when it announces first-quarter results on May 5, before market open. It has an Earnings ESP of +2.69% and a Zacks Rank #3 at present.
The consensus estimate for HII’s first-quarter sales suggests an improvement of 10.4% from the year-ago quarter’s reported numbers. The company delivered an average earnings surprise of 17.7% for the trailing four quarters.