General Dynamics’ Q1 Revenue Soars, Led by Marine and Aerospace

Military contractor General Dynamics on April 29 reported revenue of $13.5 billion for the first quarter of fiscal year 2026, a 10.3 percent year-over-year increase.

Revenue spiked in the first fiscal quarter, which ended April 5, due to growth in all four business segments, the Reston, Virginia-based defense and aerospace company said in its earnings statement.

Marine Systems had the biggest year-over-year boost, climbing by 21 percent to $4.34 billion; Aerospace revenue was up by 8.4 percent to $3.29 billion; Combat Systems increased by nearly 5 percent to $2.28 billion; and Technologies jumped by 4.2 percent to $3.57 billion.

“Our first-quarter results reflect our strong operational execution and the robust demand across our business segments,” said Phebe Novakovic, General Dynamics chairman and CEO.

“We are well-positioned to capitalize on growth opportunities in our core markets.”

General Dynamic’s earnings per share of $4.10 was a 12 percent increase from the same quarter in 2025 and topped analyst expectations of $3.69. The company’s shares soared by more than 10 percent during the early morning trading.

“This performance exceeded our own expectations,” the company’s president, Danny Deep, said in a conference call with industry analysts.

“We also had a terrific quarter from a cash flow perspective, together with strong order intake which led to a larger backlog.”

General Dynamics reported a $2.2 billion net cash inflow in the quarter, ending the quarter with $3.7 billion in cash on its books. Order backlog, meanwhile, totaled an estimated contract value of $188.4 billion across all four business segments.

Aerospace revenue jumped on the delivery of two additional aircraft in the quarter, Deep noted, along with higher service revenue from wholly-owned subsidiaries Gulfstream and Jet Aviation. The 38 Gulfstream jets delivered in the quarter were the highest first-quarter total in company history, Deep said.

“We see very active interest across all models in the U.S., but some cautious concern for some customers in the Middle East,” Deep said.

Growth in Marine systems was driven by increased throughput across all of General Dynamics’ shipyards, which include Bath Iron Works in Bath, Maine; the Electric Boat nuclear submarine facility in Groton, Connecticut; and NASSCO in San Diego.

Deep highlighted growth in General Dynamics’ U.S. Navy oiler fleet program at NASSCO, as well as the Columbia- and Virginia-class submarine programs at Electric Boat.

“We have made significant investments in each of our shipyards, particularly at Electric Boat, and we will continue to invest as we go forward to support the additional demand we see,” Deep said.

General Dynamics forecasts second-quarter earnings of $3.87 per share, along with a full-year earnings forecast of $16.45, on the strength of continued demand in the aerospace and defense segments.