Revenue grew 8.1% YoY in 2026Q2 to $14.1B, with EPS up 13.6% to $4.25, but gross margin remained range-bound at 15.5%, indicating a potential ceiling.
General Dynamics Corporation (GD) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 54.86B | 52.55B | 47.72B | 42.27B | 39.41B | 38.47B | 37.92B | 39.35B | 36.19B | 30.97B | 30.56B | 31.78B | 30.85B | 30.93B | 30.99B | 32.68B | 32.47B | 31.98B | 29.3B | 27.24B | 24.06B | 20.98B | 19.12B | 16.37B | 13.83B | 12.05B | 10.36B | 8.96B | 7.4B | 5.97B | 3.58B |
| Revenue Growth % | 9.13% | 10.13% | 12.88% | 7.27% | 2.44% | 1.43% | -3.62% | 8.72% | 16.85% | 1.35% | -3.84% | 3.01% | -0.25% | -0.2% | -5.16% | 0.65% | 1.52% | 9.15% | 7.56% | 13.2% | 14.72% | 9.71% | 16.8% | 18.37% | 14.73% | 16.4% | 15.59% | 21.1% | 24% | 66.6% | 16.76% |
| Cost of Goods Sold | 46.43B | 44.6B | 40.35B | 35.6B | 32.78B | 32.06B | 31.6B | 32.36B | 29.54B | 24.73B | 24.9B | 25.55B | 24.98B | 25.2B | 26.01B | 26.82B | 26.56B | 26.35B | 23.93B | 24.13B | 21.44B | 18.8B | 17.18B | 14.92B | 12.25B | 10.57B | 9.03B | 6.99B | 5.81B | 5.17B | 3.16B |
| COGS % of Revenue | - | 84.87% | 84.57% | 84.22% | 83.2% | 83.34% | 83.32% | 82.24% | 81.61% | 79.85% | 81.46% | 80.39% | 80.96% | 81.48% | 83.93% | 82.08% | 81.8% | 82.4% | 81.67% | 88.57% | 89.09% | 89.61% | 89.83% | 91.17% | 88.56% | 87.67% | 87.17% | 77.98% | 78.53% | 86.59% | 88.27% |
| Gross Profit | 8.44B | 7.95B | 7.36B | 6.67B | 6.62B | 6.41B | 6.33B | 6.99B | 6.66B | 6.24B | 5.67B | 6.23B | 5.87B | 5.73B | 4.98B | 5.86B | 5.91B | 5.63B | 5.37B | 3.11B | 2.63B | 2.18B | 1.94B | 1.45B | 1.58B | 1.49B | 1.33B | 1.97B | 1.59B | 800M | 420M |
| Gross Margin % | 15.38% | 15.13% | 15.43% | 15.78% | 16.8% | 16.66% | 16.68% | 17.76% | 18.39% | 20.15% | 18.54% | 19.61% | 19.04% | 18.52% | 16.07% | 17.92% | 18.2% | 17.6% | 18.33% | 11.43% | 10.91% | 10.39% | 10.17% | 8.83% | 11.44% | 12.33% | 12.83% | 22.02% | 21.47% | 13.41% | 11.73% |
| Gross Profit Growth % | - | 7.97% | 10.37% | 0.76% | 3.34% | 1.31% | -9.47% | 4.96% | 6.65% | 10.19% | -9.1% | 6.11% | 2.53% | 15.02% | -14.96% | -0.9% | 4.97% | 4.78% | 72.57% | 18.59% | 20.47% | 12.09% | 34.53% | -8.66% | 6.46% | 11.81% | -32.64% | 24.24% | 98.5% | 90.48% | 18.98% |
| Operating Expenses | 2.77B | 2.6B | 2.57B | 2.43B | 2.41B | 2.25B | 2.19B | 2.42B | 2.26B | 2.01B | 1.92B | 1.94B | 1.98B | 2.04B | 4.21B | 2.03B | 1.96B | 1.95B | 1.72B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 770M | 670M | 124M | 67M |
| OpEx % of Revenue | - | 4.94% | 5.38% | 5.74% | 6.12% | 5.84% | 5.78% | 6.14% | 6.25% | 6.48% | 6.29% | 6.09% | 6.43% | 6.59% | 13.6% | 6.21% | 6.05% | 6.11% | 5.87% | - | - | - | - | - | - | - | - | 8.59% | 9.06% | 2.08% | 1.87% |
| Selling, General & Admin | 2.77B | 2.53B | 2.57B | 2.43B | 2.41B | 2.25B | 2.19B | 2.42B | 2.26B | 2.01B | 1.92B | 1.94B | 1.98B | 2.04B | 2.22B | 2.03B | 1.96B | 1.95B | 1.72B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 647M | 570M | 509M | 0 | 0 |
| SG&A % of Revenue | - | 4.82% | 5.38% | 5.74% | 6.12% | 5.84% | 5.78% | 6.14% | 6.25% | 6.48% | 6.29% | 6.09% | 6.43% | 6.59% | 7.17% | 6.21% | 6.05% | 6.11% | 5.87% | - | - | - | - | - | - | - | 6.25% | 6.36% | 6.88% | - | - |
| Research & Development | 486M | 486M | 565M | 510M | 480M | 415M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 0.92% | 1.18% | 1.21% | 1.22% | 1.08% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | -422M | -565M | -510M | -480M | -415M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.99B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -647M | 200M | 161M | 124M | 67M |
| Operating Income | 5.66B | 5.36B | 4.8B | 4.25B | 4.21B | 4.16B | 4.13B | 4.57B | 4.39B | 4.24B | 3.74B | 4.29B | 3.89B | 3.69B | 765M | 3.83B | 3.94B | 3.67B | 3.65B | 3.11B | 2.63B | 2.18B | 1.94B | 1.45B | 1.58B | 1.49B | 1.33B | 1.2B | 918M | 676M | 353M |
| Operating Margin % | 10.32% | 10.19% | 10.05% | 10.04% | 10.69% | 10.82% | 10.9% | 11.61% | 12.14% | 13.68% | 12.25% | 13.51% | 12.61% | 11.93% | 2.47% | 11.71% | 12.15% | 11.49% | 12.47% | 11.43% | 10.91% | 10.39% | 10.17% | 8.83% | 11.44% | 12.33% | 12.83% | 13.43% | 12.41% | 11.33% | 9.86% |
| Operating Income Growth % | - | 11.68% | 12.98% | 0.81% | 1.15% | 0.73% | -9.56% | 4.01% | 3.73% | 13.14% | -12.83% | 10.44% | 5.42% | 382.22% | -80.01% | -3.02% | 7.35% | 0.6% | 17.35% | 18.59% | 20.47% | 12.09% | 34.53% | -8.66% | 6.46% | 11.81% | 10.47% | 31.05% | 35.8% | 91.5% | 12.06% |
| EBITDA | 6.36B | 6.04B | 5.68B | 5.11B | 5.09B | 5.05B | 5.01B | 5.4B | 5.16B | 4.68B | 4.2B | 4.78B | 4.38B | 4.25B | 1.39B | 4.42B | 4.51B | 4.24B | 4.1B | 3.54B | 3.01B | 2.51B | 2.27B | 1.72B | 1.79B | 1.76B | 1.55B | 1.4B | 1.08B | 800M | 420M |
| EBITDA Margin % | 11.59% | 11.49% | 11.91% | 12.08% | 12.93% | 13.14% | 13.21% | 13.72% | 14.25% | 15.1% | 13.73% | 15.03% | 14.21% | 13.72% | 4.47% | 13.52% | 13.9% | 13.25% | 13.99% | 12.98% | 12.5% | 11.95% | 11.85% | 10.52% | 12.98% | 14.58% | 15.02% | 15.66% | 14.59% | 13.41% | 11.73% |
| EBITDA Growth % | 4.59% | 6.23% | 11.24% | 0.26% | 0.83% | 0.84% | -7.19% | 4.69% | 10.26% | 11.44% | -12.14% | 8.94% | 3.3% | 206.5% | -68.65% | -2.13% | 6.54% | 3.34% | 15.95% | 17.51% | 20.07% | 10.59% | 31.59% | -4.07% | 2.16% | 12.99% | 10.83% | 30.03% | 34.88% | 90.48% | 18.98% |
| D&A (Non-Cash Add-back) | 697M | 680M | 886M | 863M | 884M | 890M | 878M | 829M | 763M | 441M | 453M | 482M | 496M | 556M | 620M | 592M | 569M | 562M | 447M | 423M | 384M | 327M | 322M | 277M | 213M | 271M | 226M | 200M | 161M | 124M | 67M |
| EBIT | 5.75B | 5.42B | 4.93B | 4.38B | 4.43B | 4.3B | 4.23B | 4.67B | 4.46B | 4.19B | 3.75B | 4.32B | 3.9B | 3.71B | 641M | 3.87B | 3.96B | 3.68B | 3.74B | 3.18B | 2.68B | 2.34B | 2.09B | 1.46B | 1.64B | 1.49B | 1.33B | 1.2B | 918M | 676M | 353M |
| Net Interest Income | -255M | -314M | -324M | -343M | -364M | -424M | -477M | -460M | -356M | -103M | -91M | -83M | -86M | -86M | -156M | -141M | -157M | -160M | -66M | -70M | -101M | -236M | -296M | -98M | -45M | -56M | -60M | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 69M | 56M | 27M | 7M | 12M | 12M | 18M | 14M | 8M | 15M | 17M | 17M | 12M | 14M | 10M | 11M | 67M | 61M | 55M | 36M | 9M | 10M | 13M | 12M | 12M | 0 | 0 | 0 | 0 |
| Interest Expense | 255M | 314M | 393M | 399M | 391M | 431M | 489M | 472M | 374M | 117M | 99M | 98M | 103M | 103M | 168M | 155M | 167M | 171M | 133M | 131M | 156M | 272M | 305M | 108M | 58M | 68M | 72M | 0 | 0 | 0 | 0 |
| Other Income/Expense | -216M | -253M | -256M | -261M | -175M | -290M | -395M | -368M | -309M | -159M | -88M | -76M | -87M | -78M | -292M | -108M | -155M | -162M | -49M | -66M | -98M | -110M | -156M | -95M | 2M | -61M | -67M | -77M | -14M | 13M | 56M |
| Pretax Income | 5.45B | 5.1B | 4.54B | 3.98B | 4.04B | 3.87B | 3.74B | 4.2B | 4.08B | 4.08B | 3.66B | 4.22B | 3.8B | 3.61B | 473M | 3.72B | 3.79B | 3.51B | 3.6B | 3.05B | 2.53B | 2.07B | 1.78B | 1.37B | 1.58B | 1.42B | 1.26B | 1.13B | 904M | 689M | 409M |
| Pretax Margin % | 9.93% | 9.71% | 9.51% | 9.42% | 10.24% | 10.07% | 9.86% | 10.68% | 11.29% | 13.16% | 11.96% | 13.28% | 12.32% | 11.66% | 1.53% | 11.38% | 11.67% | 10.98% | 12.3% | 11.19% | 10.5% | 9.86% | 9.34% | 8.38% | 11.45% | 11.81% | 12.19% | 12.57% | 12.22% | 11.55% | 11.42% |
| Income Tax | 960M | 893M | 758M | 669M | 646M | 616M | 571M | 718M | 727M | 1.17B | 977M | 1.18B | 1.13B | 1.12B | 854M | 1.17B | 1.16B | 1.11B | 1.13B | 967M | 817M | 621M | 582M | 368M | 533M | 481M | 361M | 246M | 315M | 130M | 139M |
| Effective Tax Rate % | 17.62% | 17.5% | 16.7% | 16.79% | 16.01% | 15.9% | 15.28% | 17.09% | 17.8% | 28.57% | 26.72% | 28.04% | 29.69% | 31.08% | 180.55% | 31.36% | 30.66% | 31.48% | 31.24% | 31.74% | 32.33% | 30.01% | 32.61% | 26.82% | 33.65% | 33.78% | 28.61% | 21.85% | 34.85% | 18.87% | 33.99% |
| Net Income | 4.49B | 4.21B | 3.78B | 3.31B | 3.39B | 3.26B | 3.17B | 3.48B | 3.35B | 2.91B | 2.57B | 3.04B | 2.53B | 2.36B | -332M | 2.53B | 2.62B | 2.39B | 2.46B | 2.07B | 1.86B | 1.46B | 1.23B | 1B | 917M | 943M | 901M | 880M | 589M | 559M | 270M |
| Net Margin % | 8.18% | 8.01% | 7.93% | 7.84% | 8.6% | 8.47% | 8.35% | 8.85% | 9.24% | 9.4% | 8.42% | 9.55% | 8.21% | 7.62% | -1.07% | 7.73% | 8.08% | 7.49% | 8.39% | 7.61% | 7.71% | 6.97% | 6.42% | 6.13% | 6.63% | 7.82% | 8.7% | 9.82% | 7.96% | 9.37% | 7.54% |
| Net Income Growth % | 9.81% | 11.32% | 14.09% | -2.21% | 4.08% | 2.84% | -9.1% | 4.16% | 14.87% | 13.22% | -15.28% | 19.86% | 7.47% | 809.94% | -113.14% | -3.73% | 9.61% | -2.64% | 18.68% | 11.64% | 27.04% | 19.07% | 22.21% | 9.49% | -2.76% | 4.66% | 2.39% | 49.41% | 5.37% | 107.04% | -15.89% |
| Net Income (Continuing) | 4.49B | 4.21B | 3.78B | 3.31B | 3.39B | 3.26B | 3.17B | 3.48B | 3.36B | 2.91B | 2.68B | 3.04B | 2.67B | 2.49B | -381M | 2.55B | 2.63B | 2.41B | 2.48B | 2.08B | 1.71B | 1.45B | 1.21B | 982M | 1.05B | 943M | 901M | 880M | 589M | 559M | 270M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -13M | 0 | -107M | 0 | 0 | 0 | 49M | 0 | 0 | 0 | 0 | 0 | 146M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 16.39 | 15.46 | 13.63 | 12.02 | 12.19 | 11.55 | 11.00 | 11.98 | 11.18 | 9.56 | 8.29 | 9.08 | 7.42 | 6.67 | -0.94 | 6.87 | 6.81 | 6.17 | 6.17 | 5.08 | 4.56 | 3.61 | 3.05 | 2.52 | 2.26 | 2.33 | 2.24 | 2.18 | 1.46 | 1.37 | 1.07 |
| EPS Growth % | 10.13% | 13.43% | 13.39% | -1.39% | 5.54% | 5% | -8.18% | 7.16% | 16.95% | 15.32% | -8.7% | 22.37% | 11.24% | 809.57% | -113.68% | 0.88% | 10.37% | 0% | 21.46% | 11.4% | 26.32% | 18.36% | 21.03% | 11.5% | -3% | 4.02% | 2.75% | 49.32% | 6.57% | 28.04% | -15.75% |
| EPS (Basic) | - | 15.64 | 13.81 | 12.14 | 12.31 | 11.61 | 11.04 | 12.09 | 11.33 | 9.73 | 8.44 | 9.23 | 7.56 | 6.72 | -0.94 | 6.94 | 6.88 | 6.21 | 6.21 | 5.12 | 4.60 | 3.64 | 3.08 | 2.54 | 2.28 | 2.35 | 2.26 | 2.20 | 1.48 | 1.40 | 1.07 |
| Diluted Shares Outstanding | 273.8M | 273.9M | 277.49M | 275.73M | 278.17M | 282.02M | 287.91M | 290.84M | 299.2M | 304.6M | 310.4M | 326.7M | 341.3M | 353.5M | 353.3M | 367.5M | 385.2M | 387.9M | 398.7M | 408.14M | 406.83M | 404.85M | 402.93M | 398.3M | 405.7M | 405.81M | 402.52M | 404.2M | 404.4M | 251.89M | 252.34M |
| Basic Shares Outstanding | 270.2M | 269.9M | 277.48M | 273.14M | 275.31M | 280.43M | 286.92M | 288.29M | 295.3M | 299.2M | 304.7M | 321.3M | 335.2M | 350.7M | 352.78M | 364.1M | 381.2M | 385.5M | 396.2M | 404.42M | 403.42M | 401.64M | 399.13M | 395.58M | 402.71M | 402.28M | 399.68M | 400M | 399M | 251.89M | 252.34M |
| Dividend Payout Ratio | - | 37.84% | 40.43% | 43.08% | 40.38% | 40.37% | 39.15% | 33.07% | 32.14% | 33.86% | 35.42% | 28.75% | 32.45% | 25.07% | - | 26.64% | 24.05% | 24.1% | 21.68% | 21.48% | 19.34% | 21.49% | 22.66% | 24.8% | 25.74% | 23.22% | 22.42% | 15.45% | 18.34% | 18.25% | 37.41% |
Quick answers to the most common questions about buying GD stock.
For fiscal year 2025, General Dynamics Corporation (GD) reported total revenue of $52.55B. This represents a 1367.5% increase compared to $3.58B in 1996.
General Dynamics Corporation (GD) is profitable, generating $4.21B in net income for the fiscal year ending 2025 with a net profit margin of 8.0%.
General Dynamics Corporation (GD) reported an operating income of $5.36B, resulting in an operating profit margin of 10.2%. This margin reflects the operational efficiency of the business before interest and taxes.
General Dynamics Corporation (GD) generated $7.95B in gross profit for the year, representing a gross profit margin of 15.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from mix
Metrics are mathematically derived from official filings.
Revenue Momentum Steady
GD's revenue grew 8.1% year-over-year in 2026Q2, building on a 10.3% gain in 2026Q1, as reported in the latest quarterly filings, indicating sustained demand across defense programs.
The sequential acceleration from 10.3% to 8.1% (though lower) still reflects robust growth, with revenue reaching $14.1B in 2026Q2. This growth appears organic, driven by defense backlogs and program ramps, not acquisitions. The durability is supported by consistent double-digit growth in 2024 and 2025, suggesting a multi-year upcycle.
Gross Margin Stability Amid Mix
Gross margin held at 15.5% in 2026Q2, consistent with the 15-16% range over the past two years, per financial statements, despite revenue mix shifts across segments.
GD's gross margin is lower than peers like RTX (20.1%) and NOC (19.8%), reflecting its heavier exposure to shipbuilding and combat systems, which carry lower margins. The stability suggests pricing power and cost controls, but the lack of expansion may indicate limited operating leverage at the gross profit level. Investors should monitor whether mix shifts toward higher-margin aerospace can lift margins.
Operating Leverage Contained
Operating income grew 15.4% year-over-year in 2026Q2, outpacing revenue growth of 8.1%, as per SEC filings, indicating modest operating leverage from SG&A discipline.
SG&A as a percentage of revenue declined to 5.1% in 2026Q2 from 5.3% a year earlier, while operating margin expanded to 10.4% from 10.0%. This suggests that overhead costs are scaling slower than revenue, a positive sign. However, the absolute SG&A increase of 12.3% year-over-year indicates continued investment, possibly in bid and proposal costs or IT, which could pressure margins if revenue growth slows.
EPS Growth Outpaces Net Income
Diluted EPS rose 13.6% year-over-year in 2026Q2 to $4.25, while net income grew 20% to $1.2B, as reported in the income statement, reflecting a lower share count.
The EPS growth exceeding net income growth suggests ongoing share repurchases, which have reduced the share base. Stock-based compensation is modest at $67M, representing about 5.6% of net income, so dilution is minimal. The effective tax rate appears stable, with no anomalies, indicating that earnings quality is high and not reliant on one-time items.
R&D Investment Concentrated
R&D spending appears only in Q4 periods, with $486M in 2025Q4 and $565M in 2024Q4, as per financial statements, suggesting a seasonal or project-based pattern.
The absence of R&D in other quarters may indicate that GD capitalizes or expenses development costs differently, or that R&D is embedded in COGS. The Q4 spike likely aligns with year-end program reviews or contract milestones. This pattern warrants attention as it could distort quarterly operating margins, but the overall R&D intensity appears low relative to peers, possibly reflecting a focus on mature programs.
2024Q1 Marked Inflection
In 2024Q1, revenue growth jumped to 8.6% and EPS to $2.88, but by 2024Q2 growth accelerated to 18.0% and EPS to $3.26, as per quarterly data, signaling a demand inflection.
The acceleration from 2024Q1 to 2024Q2 suggests a step-up in defense spending or program milestones, which has been sustained through 2026. This inflection appears to be driven by increased volumes across GD's segments, particularly in aerospace and combat systems. The lasting impact is a higher revenue base and improved profitability, with operating margin expanding from 9.7% in 2024Q1 to 10.4% in 2026Q2.
Margin Ceiling Risk
Despite revenue growth, gross margin has remained range-bound at 15-16% for two years, as per income statement data, suggesting a potential ceiling that could limit earnings upside.
Short-sellers might argue that GD's margin profile is structurally lower than peers due to its mix, and that any slowdown in defense spending could compress margins further. The reliance on a few large programs and the cyclicality of defense budgets pose risks. Additionally, the lack of gross margin expansion despite revenue growth may indicate that cost pressures, such as labor and materials, are offsetting pricing power. Investors should monitor whether GD can break above the 16% gross margin threshold.