Revenue has scaled to $13.5 billion in 2026Q1, yet operating margins remain constrained within a narrow 9.7% to 11.0% range over the last ten quarters.
| 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 | 53.81B | 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 % | 9.35% | 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 | 45.61B | 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 | 8.2B | 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 % | 15.24% | 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 | 2.69B | 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 | 2.69B | 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 | 5.51B | 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 % | 10.24% | 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 | 6.2B | 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 % | 11.52% | 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 % | 4.57% | 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) | 689M | 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 | 5.57B | 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 | -294M | -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 | 294M | 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 | -236M | -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 | 5.27B | 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 % | 9.8% | 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 | 931M | 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 % | 17.66% | 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 | 4.34B | 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 % | 8.07% | 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 % | 9.15% | 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) | 4.34B | 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) | 15.84 | 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 % | 10.26% | 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 | 274.1M | 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% |
Submarine production labor constraints
According to reported quarterly filings, General Dynamics has maintained a consistent revenue growth trajectory, peaking at 18.0% in 2024Q2, with the most recent 2026Q1 figures showing a 10.3% year-over-year increase, suggesting that the firm is successfully converting its substantial defense backlog into recognized top-line performance.
The revenue expansion appears driven by a combination of robust demand for land platforms in the Combat Systems segment and the ongoing ramp-up of major naval programs. Investors should monitor whether this growth remains durable as the company navigates the transition from development to full-rate production in its key aerospace and marine platforms.
Based on financial statements, General Dynamics has maintained gross margins within a tight 14.9% to 16.5% range over the last ten quarters, indicating that despite inflationary pressures on labor and materials, the firm's cost-plus contract structure provides a reliable, albeit capped, buffer against significant margin erosion.
The slight compression observed in recent periods suggests that the company is absorbing higher input costs associated with specialized labor and supply chain bottlenecks. This stability appears to be a hallmark of the firm's defense-heavy mix, though it limits the potential for significant margin expansion in the near term.
As reported in recent income statements, operating income has scaled proportionally with revenue, with operating margins hovering near 10%, suggesting that General Dynamics has yet to achieve significant operating leverage despite the substantial increase in quarterly revenue from $10.7 billion in 2024Q1 to $13.5 billion in 2026Q1.
The lack of meaningful margin expansion at the operating level implies that the company's cost structure remains heavily tied to fixed infrastructure and specialized human capital. This suggests that incremental revenue gains are largely offset by the rising costs of maintaining high-barrier-to-entry production facilities.
Based on the provided data, General Dynamics has demonstrated consistent earnings quality, with net income margins remaining stable between 7.4% and 8.6% over the last ten quarters, while stock-based compensation remains a relatively minor component of the overall expense structure, averaging roughly $45 million per quarter.
The absence of significant non-operating volatility suggests that the reported EPS growth is primarily driven by core operational performance rather than accounting adjustments or tax anomalies. Investors should continue to monitor the impact of potential EAC adjustments on future earnings, as these remain a standard risk in long-cycle defense contracting.
While the company shows steady growth, a critical analysis of the income statement suggests that the reliance on fixed-price contracts in the Aerospace segment, combined with persistent labor shortages in Marine Systems, may create a scenario where margin compression becomes more pronounced than current consensus estimates anticipate.
Short-sellers may focus on the potential for 'catch-up' adjustments in the percentage-of-completion accounting, which could lead to earnings volatility if project milestones are delayed. The current valuation appears to assume a seamless execution of the Columbia-class submarine program, which warrants further investigation given the historical difficulty of scaling such complex naval manufacturing.
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.