General Dynamics Q1 Revenue +10.3%, EPS $4.10, Raises Guidance to $16.45–$16.55
General Dynamics reported Q1 revenue of $13.5 billion, up 10.3%, and diluted EPS of $4.10, a 12% increase, driven by 21% Marine Systems growth and 1.2 Aerospace book-to-bill. Full-year EPS guidance rose to $16.45–$16.55, free cash flow conversion reached 174%; capex is set at 3.5%–4% of sales for shipyard expansion.
1. Q1 Financial Results
In Q1 2026, General Dynamics achieved revenue of $13.5 billion, up 10.3% year-over-year, and diluted EPS of $4.10, marking a 12% increase. Operating earnings rose to $1.4 billion at a 10.5% margin, while operating cash flow reached $2.2 billion, equivalent to 174% of net earnings.
2. Segment Performance
Marine Systems revenue jumped 21% to $4.34 billion, lifting segment earnings by 26.4% on improved throughput in Columbia and Virginia class programs. The Technologies segment pivoted toward AI, cyber and autonomous undersea platforms, Combat Systems saw higher international vehicle and munitions demand, and Aerospace revenue rose 8.4% with 38 jets delivered at a 1.2 book-to-bill.
3. Outlook and Guidance
The company raised full-year EPS guidance to $16.45–$16.55 and expects positive free cash flow in all remaining quarters, with Q1 as the annual peak. Capital expenditures are planned at 3.5%–4% of sales to expand shipyard capacity, while Aerospace delivery cadence is set to ramp in the second half, peaking in Q4 for mix and margin.