Company raises full-year EPS guidance to $16.80-$16.90
General Dynamics reported a strong Q2 2026 with EPS of $4.24, beating consensus and raising full-year EPS guidance to $16.80-$16.90. The company highlighted robust order activity across all segments (book-to-bill 1.4x), with particular strength in aerospace (1.5x) and combat systems (2.1x), and reiterated its commitment to investing in shipyard capacity for submarine production. Raised FY2026 EPS guidance to $16.80-$16.90 from $16.45-$16.55, citing strong operational performance and demand.
Вывод BuzzbergCompany raises full-year EPS guidance to $16.80-$16.90General Dynamics reported a strong Q2 2026 with EPS of $4.24, beating consensus and raising full-year EPS guidance to $16.80-$16.90. The company highlighted robust order activity across all segments (book-to-bill 1.4x), with particular strength in aerospace (1.5x) and combat systems (2.1x), and reiterated its commitment to investing in shipyard capacity for submarine production. Raised FY2026 EPS guidance to $16.80-$16.90 from $16.45-$16.55, citing strong operational performance and demand.Читать полный анализСвернуть анализ
General Dynamics reported a strong Q2 2026 with EPS of $4.24, beating consensus and raising full-year EPS guidance to $16.80-$16.90. The company highlighted robust order activity across all segments (book-to-bill 1.4x), with particular strength in aerospace (1.5x) and combat systems (2.1x), and reiterated its commitment to investing in shipyard capacity for submarine production. Raised FY2026 EPS guidance to $16.80-$16.90 from $16.45-$16.55, citing strong operational performance and demand.
Record total backlog of $136.5 billion, up 32% YoY, with all four segments achieving a book-to-bill above 1.0.
Raised FY2026 free cash flow conversion expectation to ~105% of net income, up from prior expectations.
Aerospace order activity strongest in H1 since 2022, driven by demand across the Gulfstream portfolio, though Mideast customers show cautious concern.
Revenue$14.094B
+5% QoQ
EPS$4.24
+3% QoQ
Gross margin15.49%
reported
Op margin10.36%
reported
Что изменилось в этом квартале
01
Guidance
Company raises full-year EPS guidance to $16.80-$16.90
Guidance · revenue to $55.7B
02
Demand
Record backlog of $136.5 billion, up 32% year-over-year
Management repeatedly used positive descriptors like 'superb quarter,' 'very strong first half,' and expressed confidence in continued growth and order momentum across all segments.
03
Demand
Aerospace orders strongest first half since 2022
Record backlog of $136.5 billion, up 32% year-over-year. Management repeatedly used positive descriptors like 'superb quarter,' 'very strong first half,' and expressed confidence in continued growth and order momentum across all segments.
04
Demand
Combat systems book-to-bill at 2.1 times on strong international demand
Record backlog of $136.5 billion, up 32% year-over-year. Management repeatedly used positive descriptors like 'superb quarter,' 'very strong first half,' and expressed confidence in continued growth and order momentum across all segments.
AI, капзатраты и спрос
AI
Платформа и монетизация
Management discussed AI as integrated with cybersecurity across GDIT's portfolio, with early investments in digital accelerators and AI providing skills to apply technologies to a growing number of agencies. GDIT is leveraging AI opportunities across most of its portfolio.
Спрос
Заказы и конверсия
Record backlog of $136.5 billion, up 32% year-over-year. Management repeatedly used positive descriptors like 'superb quarter,' 'very strong first half,' and expressed confidence in continued growth and order momentum across all segments.
Капзатраты
Инвестиции и мощности
Capital expenditures are expected to be between 3.5% and 4% of sales for the full year, with a significant ramp in the back half as the company invests in shipyards to accelerate production and meet future demand. First half capex was up nearly 30% year-over-year.
Тон · Upbeat
Management repeatedly used positive descriptors like 'superb quarter,' 'very strong first half,' and expressed confidence in continued growth and order momentum across all segments.
Альфа цепочки поставок
A1
The supply chain for Gulfstream has stabilized and is meeting production plan cadence, contrasting with continued difficulties reported by competitors like Boeing and Airbus.
“for the major component, Gulfstream has a very clear relationship that has really given the supply chain visibility into our production plans... they are keeping up. now and our expectation is they will be in the future as well.”
GDIT identified a significant shift towards Other Transaction Authority (OTA) agile contracting, with more wins in H1 2026 than all of 2025, indicating a structural change in government IT procurement away from traditional contracts.
GDIT identified a significant shift towards Other Transaction Authority (OTA) agile contracting, with more wins in H1 2026 than all of 2025, indicating a structural change in government IT procurement away from traditional contracts. — This trend favors companies with agility and modern tech stacks over traditional prime contractors, potentially reordering market share in federal IT services.
Growth admission systems came from across the portfolio, most notably in land and air systems and in their international portfolio. The international portfolio is up more than 35% since 2024, and we expect that to continue to be a key driver of growth for the year and beyond. In IT services, We've discussed elongated procurement cycles, and that continues. But a real bright spot has been GDIT's success capturing programs under agile contracting mechanisms, such as other transaction authorities or OTAs. GDIT has submitted and won more OTAs in the first half of 2026 than for all of last year.
The supply chain for Gulfstream has stabilized and is meeting production plan cadence, contrasting with continued difficulties reported by competitors like Boeing and Airbus.