# General Dynamics lifts 2026 outlook as backlog and cash flow surge

> General Dynamics beat third-quarter expectations, raised its full-year outlook and reported strong bookings, cash generation and a $220.3 billion backlog.

Source page: https://stoqly.net/news/general-dynamics-q3-2026-backlog-cash-flow-guidance

- **Published:** 2026-10-31T17:38:00+00:00
- **Section:** Quarterly results
- **Company:** General Dynamics (GD), https://stoqly.net/companies/gd.md

General Dynamics reported **$14.566 billion in third-quarter revenue**, up **12.9%** from the year-ago period, while diluted EPS rose **15.7% to $4.49**. Operating earnings increased **14.7% to $1.527 billion**, lifting the operating margin to **10.5%**, 20 basis points above last year.

The result exceeded reported market expectations of about **$13.69 billion in revenue** and **$4.14 in EPS** in one widely cited consensus snapshot. The comparison is directional because consensus estimates vary by provider; the company figures come from its SEC-filed earnings release.

Cash generation was a central strength. Operating cash flow was **$1.710 billion**, equal to 139% of net earnings, and free cash flow was **$1.229 billion** in the quarter and **$4.827 billion** through nine months. General Dynamics also paid $429 million in dividends, spent $481 million on capital expenditures and reduced total debt by $500 million; cash ended at $4.388 billion versus $2.333 billion at year-end 2025.

**Higher full-year outlook** Management raised its 2026 revenue outlook to **$56.5–$56.8 billion** and diluted EPS outlook to **$17.20–$17.30**, from a prior EPS range of $16.80–$16.90. It indicated an operating margin around 10.5% and free-cash-flow conversion near 105% of net earnings.

Orders reached **$98.8 billion**, including $93.8 billion in defense segments, and the company-wide backlog rose to $220.3 billion. Marine Systems revenue grew 21.1% year over year and Aerospace operating earnings rose 19.3%; Combat Systems operating earnings declined 1.5%, showing that the quarter was strong but uneven across businesses. The backlog supports visibility, while balance-sheet and cash-flow data show capacity for dividends, investment and debt reduction. These are reported results and company guidance, not a guarantee of future performance.

- Revenue: $14.566B +12.9% year over year
- Diluted EPS: $4.49 +15.7% year over year
- Backlog: $220.3B
- Q3 book-to-bill: 6.8x

- [General Dynamics Reports Third-Quarter 2026 Financial Results, SEC Exhibit 99.1, October 30, 2026](https://www.sec.gov/Archives/edgar/data/40533/000004053326000036/gd-20261004exhibit991.htm)
- [General Dynamics Form 8-K filing index, October 30, 2026](https://www.sec.gov/Archives/edgar/data/40533/000004053326000036/0000040533-26-000036-index.htm)
- [General Dynamics Q3 2026 earnings event and presentation](https://investorrelations.gd.com/events/default.aspx?LanguageId=1)

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Written by Stoqly from SEC filings and market data. For information only — not investment advice or a recommendation to buy, sell or hold any security.