Published: December 1, 2025
General Dynamics Corporation (NYSE: GD) heads into the final month of 2025 with strong earnings momentum, a record defense backlog and rising interest from Wall Street – but also a fresh legal overhang investors can’t ignore.
Below is a deep dive into the latest General Dynamics stock news, 2025 results, analyst forecasts, dividend profile, and the key bull and bear arguments around GD today.
Where General Dynamics Stock Stands Now
As of the close on December 1, 2025, General Dynamics shares finished at $332.38, down 2.71% on the day in a broadly weak market. Even after the pullback, the stock trades only about 7.8% below its 52‑week high of $360.50, set on October 24. [1]
Over the past year:
- 52‑week range: roughly $239.20 – $360.50 [2]
- Year‑to‑date performance: price-only gains of about +26% since December 31, 2024, according to Barchart, with total return (including dividends) closer to +32%. [3]
- Multi‑year returns: 5‑year total return of roughly +119% and about +133% over 10 years, illustrating long-term compounding in the name. [4]
On valuation, most data providers place General Dynamics at:
- Trailing P/E: about 22x earnings [5]
- Forward P/E: around 20x next 12 months’ EPS [6]
- Price / Sales: ~1.8x [7]
- Price / Book: ~3.8x [8]
Equity research site Simply Wall St estimates GD’s P/E at ~21.9x, versus a US aerospace & defense industry average near 38x, and even below its own “fair” P/E estimate of 27.4x – implying the stock is still reasonably valued relative to peers and fundamentals. [9]
Volatility remains low: Dividend.com pegs GD’s 5‑year beta at about 0.4, making it a classic “defensive” industrial. [10]
2025 Earnings: Three Straight Quarters of Double‑Digit Growth
Q1 2025: Strong start, led by aerospace
In Q1 2025, General Dynamics posted:
- Revenue: $12.2 billion, +13.9% year‑on‑year
- Diluted EPS:$3.66, up 27.1% vs. the prior-year quarter
- Operating margin:10.4%, +70 bps YoY
All four segments grew revenue and operating earnings, with Aerospace the standout: revenue up 45%, operating earnings up 69%, and margins expanding over two percentage points to 14.3%, driven by higher Gulfstream deliveries and manufacturing efficiencies. [11]
The company ended Q1 with backlog of $88.7 billion and total estimated contract value of $141.3 billion when including options and IDIQ contracts. [12]
Q2 2025: Another beat and a backlog jump
In Q2 2025, GD again beat expectations:
- Revenue:$13.0 billion, up 8.9% YoY
- Diluted EPS:$3.74, up 14.7% YoY, beating analyst EPS estimates by roughly 5–6% [13]
- Operating margin:10.0%, +30 bps YoY
Orders were outstanding:
- Orders: $28.3 billion for the quarter
- Company‑wide book‑to‑bill:2.2x, with defense segments at 2.4x and aerospace at 1.3x
- Backlog:$103.7 billion, with total estimated contract value of $161.2 billion [14]
Management highlighted especially strong performance in Marine Systems (submarines) and continued robust demand across the Gulfstream product line. [15]
Q3 2025: Business jets roar back, backlog hits a new record
The latest quarter, Q3 2025, extended the streak:
- Revenue:$12.9 billion, +10.6% YoY
- Operating earnings:$1.3 billion, up 12.7% YoY
- Diluted EPS:$3.88, up 15.8% YoY, beating consensus (~$3.70) [16]
- Operating margin:10.3%, up 20 bps YoY
According to the company, all four segments grew both earnings and backlog in Q3, with Aerospace again the star: revenue rose 30.3% and margins expanded by 100 bps versus last year on strong Gulfstream demand. [17]
Reuters notes that Gulfstream deliveries climbed from 28 to 39 jets year‑on‑year in the quarter, while Marine Systems revenue – which includes nuclear submarines – grew nearly 14%, reflecting heightened defense spending and geopolitical tensions, especially in the Middle East. [18]
Backlog and orders hit new highs:
- Orders in Q3: $19.3 billion
- Company‑wide book‑to‑bill:1.5x (1.6x for defense segments, 1.3x for Aerospace)
- Total estimated contract value:$167.7 billion, including $109.9 billion of backlog plus $57.8 billion of additional potential contract value. [19]
For the first half of 2025, third‑party analyses show revenue up about 11% and EPS up over 20% versus the prior year. [20] Q3 results confirmed that double‑digit growth trend is still intact.
Updated 2025 guidance
After Q3, MarketBeat reports that General Dynamics set full‑year 2025 EPS guidance at $15.30–$15.35. That’s an increase from the more cautious $14.80 EPS guide issued with 2024 results and represents solid mid‑teens growth versus 2024 EPS of around $13.63. [21]
Backlog, Contracts and AI: What’s Driving Future Revenue
A key part of the GD investment story is multi‑year visibility.
Record defense and aerospace backlog
From Q1 through Q3 2025, total estimated contract value rose from $141.3 billion → $161.2 billion → $167.7 billion – a very strong uptrend driven by submarine programs, surface ships, combat vehicles and IT contracts, alongside robust business-jet demand. [22]
24/7 Wall St highlighted the Q3 report as a “broad‑based earnings beat,” noting that the $167.7 billion backlog and 1.5x book‑to‑bill ratio provide multi‑year earnings visibility rather than just one strong quarter. [23]
Recent big-ticket contract wins
Several fresh contract announcements in late 2025 add to that visibility:
- Fleet oilers (NASSCO): On November 10, 2025, General Dynamics NASSCO was awarded $1.7 billion to build two additional John Lewis‑class fleet replenishment oilers (T‑AO 215 and T‑AO 216) for the U.S. Navy. NASSCO is now under contract to build 17 of the Navy’s 20‑ship program of record, with four ships already delivered and five more under construction. [24]
- Mission Systems contracts: General Dynamics Mission Systems recently announced contracts to provide submarine situational awareness (STEB buoy systems) for the U.S. Navy, advanced electronics for MK 54 torpedoes, and continued development of the Next Generation Survival Radio (NGSR) for the U.S. Air Force – where GD has been down‑selected as the single developer. [25]
- Space Development Agency ground systems: Mission Systems also won work on the Ground, Management & Integration (GMI) program, evolving the ground architecture for the proliferated warfighter space architecture, extending GD’s role in space-based defense infrastructure. [26]
AI & cloud with Google Public Sector
On November 13, GDIT (General Dynamics Information Technology) announced an expanded collaboration with Google Public Sector. GDIT will integrate its Digital Accelerators with Google Cloud AI and security offerings to deliver:
- “Mission edge AI” in disconnected or classified environments using Google Distributed Cloud
- AI‑enhanced citizen services via Google’s Contact Center AI platform, including conversational and generative AI tools for civilian and health agencies [27]
This partnership positions GD’s Technologies segment to capture growth in defense AI, cyber and digital modernization – areas that typically carry higher margins and long-term service revenues.
Dividend: A Reliable (If Modest) Income Stream
General Dynamics is a long‑standing Dividend Aristocrat.
- In March 2025, the board lifted the quarterly dividend to $1.50 per share, a 5.6% increase and the 28th consecutive annual increase, according to the company’s own Q1 release. [28]
- The board reaffirmed the $1.50 quarterly dividend in June and August 2025, with the most recent payment made on November 14, 2025 to shareholders of record on October 10. [29]
- Aggregators such as StockAnalysis and Dividend.com show annualized dividends of $6.00 per share and a current yield around 1.7%–1.8% at today’s price, with a payout ratio in the high‑30% range and 34 years of consecutive increases. [30]
Dividend-focused sites also note a shareholder yield of roughly 3%+ when combining dividends and buybacks. [31]
In short: this is a low‑yield, high‑quality dividend grower – more about steady raises than high current income.
How Wall Street Sees GD: Consensus Forecasts and Targets
Ratings and price targets
Different analyst platforms broadly agree that GD is a buy‑rated stock with mid‑single‑digit to low‑double‑digit upside from current levels:
- MarketBeat:
- Consensus rating: Moderate Buy based on 28 analysts (1 Sell, 10 Hold, 14 Buy, 3 Strong Buy).
- Average 12‑month price target:$358.10, implying ~8% upside from ~$332.
- Target range: $236 – $410. [32]
- WallStreetZen:
- Average 1‑year price target: $366.15 (13 analysts), also implying around 7%–10% upside from recent prices.
- Target range: $300 – $405. [33]
- StockAnalysis.com:
- 18 analysts rate GD a Buy with an average target of $342.41, just ~3% above recent trading levels (their snapshot used a slightly higher price). [34]
- TradingView analyst consensus:
- Lists a price target around $383.71 based on 17 analysts, with a Buy/Strong Buy rating.
- Next‑quarter estimates: EPS around $4.11 on revenue of ~$13.8 billion. [35]
Dividend.com’s dashboard similarly implies roughly 10–12% upside based on the average sell‑side target they track. [36]
Earnings and revenue growth forecasts
WallStreetZen aggregates forecasts from ~25–26 analysts and shows: [37]
- EPS:
- 2025: $15.84 (consensus)
- 2026: $17.74
- 2027: $19.40
- Revenue growth: expected ~3.97% annually in coming years, which is slower than the U.S. aerospace & defense industry average (~7.9%) and far below the broader market’s long‑term growth assumptions.
That slower forecast explains why some analysts see GD as more of a steady compounder than a high‑growth story, despite the strong 2025 numbers.
What Recent Analysts and Commentators Are Saying
The bullish case
A number of recent analyses argue that GD remains attractively positioned:
- “Excellent blend of defense and growth at a reasonable price” – A recent Seeking Alpha article describes GD as a classic GARP (growth at a reasonable price) stock: despite a forward P/E in the low‑20s, the author expects 9–12% annual EPS growth supported by the backlog and improving margins, plus a “well‑covered, growing dividend.” [38]
- Outperforming the S&P 500 and still undervalued – Another Seeking Alpha piece notes that GD has significantly outpaced the S&P 500’s 2025 return while still looking undervalued on cash‑flow and relative P/E metrics (content is paywalled, but summary snippets emphasize backlog strength and sector positioning). [39]
- Value and quality screens – Zacks recently highlighted General Dynamics as a top long‑term value stock, including it among its “Strong Buy” ideas for December 2025. [40] And a Seeking Alpha “Best Dividend Aristocrats for December 2025” screen shows GD up nearly 30% year‑to‑date, underscoring how well it has rewarded dividend investors in 2025. [41]
- Relative valuation still reasonable: Simply Wall St and others argue that while the absolute P/E is not cheap versus its own history, GD looks undervalued relative to peers (P/E ~22x vs. industry ~38x, and below their estimated “fair” P/E of ~27x). [42]
The more cautious / bearish case
Not everyone is enthusiastic at current levels:
- Barchart’s “we’re sitting this one out” view: A recent Barchart/StockStory article points out that, despite a ~22% six‑month return and a share price around $343, GD’s:
- Backlog growth has averaged only ~3.4% per year over the last two years, which the authors see as underwhelming relative to peers.
- Sell‑side analysts forecast only ~4% revenue growth over the next 12 months, below its ~6% annualized growth over the past five years.
- Free cash flow margin has drifted lower over the last five years to about 9.3%, raising concerns about capital intensity.
- At roughly 20–21x forward earnings, they view the stock as “fairly” rather than cheaply valued and prefer other opportunities. [43]
- Guidance vs. expectations: Barron’s reminded investors back in early 2025 that GD’s initial 2025 EPS guidance (around $14.80) was below the then‑consensus of ~$15.80, which temporarily pressured the stock. Management has since raised guidance, but the episode illustrates that expectations can get ahead of fundamentals. [44]
In short, bulls emphasize backlog depth, diversified defense exposure and improving aerospace profitability, while skeptics focus on moderate long‑term growth and a valuation that’s no longer a bargain after a 25–30% run-up this year.
Fresh Legal Overhang: Wage‑Fixing Allegations
On December 1, 2025, Reuters reported that a U.S. federal judge allowed a proposed class‑action lawsuit against General Dynamics, Huntington Ingalls and other naval shipbuilders to move forward. [45]
Key points:
- Plaintiffs – two naval architects – allege the firms conspired not to “poach” or actively recruit each other’s marine engineers, allegedly suppressing wages across a market that accounts for about 75% of U.S. naval engineering.
- The case had initially been dismissed on statute‑of‑limitations grounds, but an appeals court revived it, and Judge Anthony Trenga has now ruled that the allegations plausibly suggest a wage‑fixing conspiracy, allowing the case to proceed. [46]
General Dynamics has not publicly commented in detail on the suit, and it’s far too early to estimate damages or settlement risk. But investors should treat it as a non‑trivial legal and reputational overhang, especially in a labor market and regulatory environment that is increasingly hostile to “no‑poach” agreements.
Ownership, Balance Sheet and Risk Profile
Recent 13F‑based analyses from MarketBeat show solid institutional support:
- Institutional ownership: roughly 86% of outstanding shares. [47]
- Several wealth managers and family offices increased their stakes in Q2 2025, while insider ownership stands around 1.5%. Director Mark Malcolm sold 3,220 shares in September 2025 at about $329.45, but retains over 10,000 shares. [48]
The balance sheet remains conservative for a defense prime:
- Debt‑to‑equity around 0.29, with solid current and quick ratios (~1.4 and 0.87). [49]
- Free cash flow has been strong in 2025, with Q2 cash conversion well above 100% of net income, and Q3 generating $2.1 billion in operating cash flow (about 199% of net earnings). [50]
- Intellectia estimates a free cash flow yield around 5.2% at current prices, implying a reasonable cash‑flow‑based valuation even with a mid‑20s P/E. [51]
Key Catalysts and Risks to Watch
Potential positive catalysts
- Q4 2025 earnings (early 2026): Another clean beat with strong book‑to‑bill could support further price target upgrades.
- Defense budget tailwinds: Ongoing geopolitical tensions in Europe and the Middle East are supporting demand for submarines, munitions, C4ISR and space capabilities – all GD specialties. [52]
- Gulfstream ramp: Continued ramp‑up of the G700/G800 and easing certification and supply constraints could sustain double‑digit Aerospace growth and margin expansion. [53]
- AI and cyber wins: Successful execution of the Google Public Sector collaboration and Mission Systems cyber / space contracts could push the Technologies segment toward higher growth and margins. [54]
Major risks
- Legal liability from wage‑fixing case: If the class action results in a large settlement or adverse judgment, it could lead to meaningful one‑time costs and reputational damage. [55]
- Budget and political risk: General Dynamics still derives the majority of its revenue from U.S. federal defense spending; future budget fights or program cuts (especially in submarines or business jets) could hit both backlog and margins. [56]
- Cyclical aerospace demand: Business jets are sensitive to global growth and corporate confidence. A downturn or over‑ordering cycle could soften Gulfstream’s order book. [57]
- Valuation compression: At ~22x trailing and ~20x forward earnings, with consensus revenue growth below 4%, the stock is vulnerable if growth slows or defense sentiment cools — one reason some value investors are cautious. [58]
Is General Dynamics Stock a Buy Now?
Whether GD is attractive for you depends heavily on your time horizon, risk tolerance and what you’re looking for in a stock. But we can summarize the current setup:
What the market seems to be pricing in:
- Mid‑single‑digit to high‑single‑digit annual revenue growth
- High‑single‑digit to low‑double‑digit annual EPS growth
- A durable, steadily rising dividend with a ~1.7–1.8% yield
- Continued strength in defense demand and Gulfstream jets, offset by moderate legal and political risk
At today’s price, Wall Street’s base case implies roughly 7–10% price upside over the next 12 months, plus a 1–2% dividend yield – leaving investors with an expected total return in the high‑single‑digit to low‑double‑digit range if forecasts prove correct. [59]
GD tends to make the most sense for:
- Long‑term investors who want defense exposure plus business‑jet leverage,
- Those who value a strong balance sheet, low beta and multi‑decade dividend growth, and
- Investors comfortable paying a “quality” multiple (low‑20s P/E) for a company with highly visible cash flows and a record backlog.
It may be less appealing for:
- Deep value investors seeking single‑digit P/E multiples or very high dividend yields,
- Traders looking for hyper‑growth or highly cyclical swings, and
- Those who are wary of legal / regulatory risk around labor practices.
As always, this article is for information and general analysis only. It is not personal investment advice. Before buying or selling any stock – including General Dynamics – you should consider your own financial situation, risk tolerance and investment goals, and, if needed, consult a qualified financial adviser.
References
1. stockanalysis.com, 2. www.barchart.com, 3. www.barchart.com, 4. www.barchart.com, 5. fullratio.com, 6. www.gurufocus.com, 7. stocksguide.com, 8. intellectia.ai, 9. simplywall.st, 10. www.dividend.com, 11. www.prnewswire.com, 12. www.prnewswire.com, 13. www.gd.com, 14. www.gd.com, 15. www.stocktitan.net, 16. investorrelations.gd.com, 17. investorrelations.gd.com, 18. www.reuters.com, 19. investorrelations.gd.com, 20. www.stocktitan.net, 21. www.marketbeat.com, 22. www.prnewswire.com, 23. 247wallst.com, 24. www.gd.com, 25. gdmissionsystems.com, 26. gdmissionsystems.com, 27. www.gd.com, 28. www.prnewswire.com, 29. investorrelations.gd.com, 30. stockanalysis.com, 31. stockanalysis.com, 32. www.marketbeat.com, 33. www.wallstreetzen.com, 34. stockanalysis.com, 35. www.tradingview.com, 36. www.dividend.com, 37. www.wallstreetzen.com, 38. seekingalpha.com, 39. seekingalpha.com, 40. www.zacks.com, 41. seekingalpha.com, 42. simplywall.st, 43. www.barchart.com, 44. www.barrons.com, 45. www.reuters.com, 46. www.reuters.com, 47. www.marketbeat.com, 48. www.marketbeat.com, 49. www.marketbeat.com, 50. www.stocktitan.net, 51. intellectia.ai, 52. www.reuters.com, 53. investorrelations.gd.com, 54. www.gd.com, 55. www.reuters.com, 56. en.wikipedia.org, 57. www.reuters.com, 58. www.financecharts.com, 59. www.marketbeat.com
