- Earnings beat: GD reported Q3 2025 revenue of $12.91 billion (up 10.6% YoY) and EPS of $3.88, exceeding Wall Street forecasts [1] [2].
- Aerospace boom: Gulfstream business jet deliveries surged (39 jets vs. 28 a year ago), driving a 30% jump in its Aerospace segment’s revenue [3]. CEO Phebe Novakovic noted “very strong” order activity for jets [4].
- Big backlog: GD ended Q3 with an estimated $167.7 billion in contracts on file, providing strong revenue visibility [5]. Novakovic said “each of our four segments grew earnings and backlog in the quarter, reflecting solid execution coupled with growing demand.” [6]
- New defense contracts: The company won a €3 billion ($3.5 billion) German Army scout vehicle contract [7] and recently secured a $1.25 billion U.S. Army IT services order (plus a $1.5 billion STRATCOM deal) [8]. It also landed nearly $700 million in Navy submarine and space contracts [9].
- Stock movement: GD shares jumped after hours on Friday, trading around the mid-$350s (approximately $353 at last check) [10]. Thursday’s close was $341.50 [11]. The stock is up roughly 27% year-to-date [12].
- Analyst outlook: Wall Street is upbeat. Seaport Global recently upgraded GD to Buy (price target $376) [13]. Other analysts (e.g. RBC Capital) maintain targets in the mid-$300s [14] [15], reflecting confidence in the firm’s growth.
Blowout Q3 Results and Rising Orders
General Dynamics (NYSE: GD) stunned investors on Oct. 24, 2025, with a blowout third-quarter report. The defense and aerospace giant said Q3 revenue was $12.91 billion – about 10.6% higher than a year ago – beating the ~$12.57 billion analysts expected [16]. GAAP earnings per share came in at $3.88, well above the $3.69 consensus estimate [17] [18]. Operating income was $1.3 billion, and margins expanded by 20 basis points to 10.3%.
Management highlighted exceptionally strong demand. “Each of our four segments grew earnings and backlog in the quarter, reflecting solid execution coupled with growing demand,” CEO Phebe Novakovic said [19]. In particular, GD’s Aerospace division (Gulfstream jets) had a banner quarter. Gulfstream delivered 39 business jets, up from 28 a year earlier, fueling a 30% jump in aerospace revenue [20]. Novakovic called the aerospace segment’s performance “impressive,” noting “very strong” order activity for luxury jets [21]. The Marine Systems segment (submarines) also grew revenue by double-digits, while its Combat Systems and Technologies units remained solid.
Order activity across GD’s businesses was vigorous: total new orders hit $19.3 billion, giving a book-to-bill ratio of 1.5-to-1 [22]. The company’s backlog (orders on file) swelled to roughly $168 billion, underpinning growth ahead [23]. Cash flow was robust too: GD generated about $2.1 billion from operations (199% of net earnings) and entered the quarter with $2.5 billion cash on hand [24] [25].
Big Defense Contracts and Backlog Build
GD’s stock gains were further bolstered by news of new defense wins. A Reuters report on Oct. 20 noted that GD’s European Land Systems unit landed a €3 billion ($3.5 billion) contract to build next-generation scout vehicles for the German Army [26]. In the U.S., GD recently secured a $1.25 billion task order supporting the Army in Europe and Africa, plus a $1.5 billion StratCom contract (for Strategic Command IT) [27]. These large awards come on the heels of multiple Navy contracts totaling about $698 million (mostly submarine and space systems) [28].
Such contract wins reinforce GD’s backlog and help explain its upbeat outlook. For example, Reuters reports that amid global tensions both in Ukraine and the Middle East, demand for advanced defense systems has surged. Defense stocks are now trading about 120% above their levels before the late-2023 Middle East crisis [29], reflecting strong military spending worldwide. GD’s role in submarines, tanks, communications and cybersecurity means it stands to benefit from the Pentagon’s increased budgets. Novakovic noted the broader defense environment remains supportive, with “growing demand” across business units [30].
Stock Performance and Market Reaction
General Dynamics stock jumped on Friday. According to Benzinga, GD shares “rose 1% to close at $341.50 on Thursday,” Oct. 23 [31]. After the earnings release on Friday, the stock popped further. By pre-market trading, GD was near $353 – about a 3.4% gain on the day [32]. This puts the stock at or near new multi-year highs (an Investing.com report notes GD briefly touched an all-time high of $358.25 on Oct. 24) [33].
Over the past week GD has traded up overall (rising roughly 2–3%), reflecting the strong news flow. Year-to-date, the stock is up about 27% [34], roughly in line with – or slightly ahead of – its aerospace/defense peers. This modest recent pullback (from a summer high) gave some investors a chance to buy in, but the Q3 results have clearly put GD back on an upward trajectory.
Analysts Bullish on GD
Wall Street analysts are broadly positive. Data aggregator Benzinga notes that Seaport Global in late September upgraded GD to Buy with a $376 price target, after previously being Neutral [35]. At that time GD traded around $330 (near its 52-week peak) and had returned +27% YTD [36]. RBC Capital, meanwhile, recently maintained a $360 target [37], and other firms like Morgan Stanley and UBS also have targets in the mid-to-upper $300s. Many analysts cite GD’s solid backlog and the prospect of higher defense spending or new jet tax incentives as reasons to be optimistic.
As one example, the Investing.com report explains that Seaport Global believes recent government budget battles (including a potential shutdown) have created a buying opportunity. Seaport noted GD’s “fundamentals continue to improve,” with reduced execution risk, making any dip a possible entry point [38]. Other analysts highlight GD’s reliable dividends (47 years of payments) and moderate debt, underscoring the company’s financial strength [39].
Outlook and Market Sentiment
General Dynamics appears well-positioned for continued growth. The company’s emphasis on cash generation (already paying about $403 million in quarterly dividends [40]) and investment in new technology (e.g. digital combat systems) bodes well for investors. Sector sentiment is also a tailwind: as Reuters notes, arms makers have been in favor amid geopolitical uncertainty [41].
On the flip side, analysts will watch how ongoing events play out. A potential U.S. government shutdown or delays in defense budgets could temporarily shake confidence. However, even in those scenarios some experts (e.g. Seaport) argue GD’s long-term contract work and backlog should limit downside.
In summary, on Oct. 24, 2025, General Dynamics stock is riding high after exceeding expectations on multiple fronts. The company’s strong Q3 beat, new defense orders, and upbeat guidance have analysts and investors feeling bullish. “Very strong” demand for its products has translated into rising profit and backlog, and most forecasts have been nudged higher [42] [43]. With shares near record territory and a clear pipeline of work ahead, GD’s stock has become a standout in the defense sector.
Sources: Company earnings releases and news reports [44] [45] [46] [47]; Benzinga, Investing.com and Reuters coverage [48] [49] [50] (including ts2.tech analysis [51]).
References
1. www.benzinga.com, 2. www.benzinga.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.benzinga.com, 6. www.benzinga.com, 7. www.reuters.com, 8. www.reuters.com, 9. au.investing.com, 10. www.benzinga.com, 11. www.benzinga.com, 12. www.investing.com, 13. www.investing.com, 14. www.investing.com, 15. au.investing.com, 16. www.benzinga.com, 17. www.benzinga.com, 18. www.benzinga.com, 19. www.benzinga.com, 20. www.reuters.com, 21. www.reuters.com, 22. www.benzinga.com, 23. www.benzinga.com, 24. www.benzinga.com, 25. www.benzinga.com, 26. www.reuters.com, 27. www.reuters.com, 28. au.investing.com, 29. www.reuters.com, 30. www.benzinga.com, 31. www.benzinga.com, 32. www.benzinga.com, 33. au.investing.com, 34. www.investing.com, 35. www.investing.com, 36. www.investing.com, 37. au.investing.com, 38. www.investing.com, 39. www.investing.com, 40. www.benzinga.com, 41. www.reuters.com, 42. www.reuters.com, 43. www.benzinga.com, 44. www.benzinga.com, 45. www.reuters.com, 46. www.reuters.com, 47. www.investing.com, 48. www.benzinga.com, 49. au.investing.com, 50. www.reuters.com, 51. ts2.tech
