General Dynamics Corporation
GD · NYSE
Analyst ratings
buy · 9 ratings
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| July 9, 2026 | Jefferies | Maintains | Buy | $440.00 |
| July 6, 2026 | B of A Securities | Maintains | Buy | $415.00 |
| June 11, 2026 | Jefferies | Upgrades | Buy | $400.00 |
| May 18, 2026 | Citigroup | Maintains | Neutral | $364.00 |
| April 30, 2026 | JP Morgan | Maintains | Overweight | $400.00 |
| April 30, 2026 | UBS | Maintains | Neutral | $371.00 |
| April 30, 2026 | RBC Capital | Reiterates | Sector Perform | $385.00 |
| April 7, 2026 | Jefferies | Maintains | Hold | $380.00 |
| April 2, 2026 | Citigroup | Maintains | Neutral | $380.00 |
| February 2, 2026 | Jefferies | Maintains | Hold | $385.00 |
| January 30, 2026 | B of A Securities | Reiterates | Buy | $400.00 |
| January 15, 2026 | UBS | Maintains | Neutral | $388.00 |
| January 13, 2026 | Citigroup | Maintains | Neutral | $389.00 |
| December 19, 2025 | JP Morgan | Maintains | Overweight | $385.00 |
| December 16, 2025 | Morgan Stanley | Upgrades | Overweight | $408.00 |
| October 28, 2025 | JP Morgan | Maintains | Overweight | $380.00 |
| October 28, 2025 | B of A Securities | Maintains | Buy | $400.00 |
| October 28, 2025 | Bernstein | Maintains | Market Perform | $388.00 |
| October 27, 2025 | Susquehanna | Maintains | Positive | $405.00 |
| October 27, 2025 | UBS | Maintains | Neutral | $381.00 |
| October 15, 2025 | Morgan Stanley | Maintains | Equal-Weight | $360.00 |
Defense spending trajectory and backlog sustainability
General Dynamics holds an $89 billion backlog supported by record military orders and NATO's 5% defense spending pledge, which could unlock $2.7 trillion for U.S. contractors. The company raised its 2025 revenue outlook to $51.2 billion with an increased EPS forecast, reflecting strong and durable demand across defense segments.
Despite strong headline backlog figures, contract award volatility and potential adjudication setbacks remain real risks that can disrupt revenue timing. A U.S.-Iran interim peace agreement already triggered a decline in defense contractor shares, signaling that geopolitical de-escalation could dampen the spending environment underpinning backlog growth.
Aerospace segment margin expansion and valuation premium
Jefferies raised its price target to $440, citing stronger aerospace margins, a favorable aircraft mix, and continued momentum in the Gulfstream business jet division. The firm projects 8% EPS growth in 2026 to $16.61, above company guidance, driven largely by aerospace and marine segment outperformance.
Goldman Sachs maintains a Sell rating with a price target of $308, well below current trading levels. General Dynamics trades at approximately 15 times 2027 EBITDA, a 17% premium to defense prime peers, raising concerns that the aerospace-driven valuation uplift is already fully priced in and leaves limited upside.
Marine and Technologies segment growth versus execution risk
The marine division shows strong potential to enhance margins by ramping submarine production, while the expanded Navy C5ISR integration role positions the Technologies segment for growth in secure, networked defense systems. Q1 2026 EBIT rose 12%, demonstrating solid near-term execution across both divisions.
Alternative data signals present a cautious picture: only 59% of General Dynamics employees report a positive business outlook, web traffic is down 6.2%, and the AltIndex AI Score stands at 47 out of 100, a Hold. Supply chain stability in the Marine segment and contract timing volatility in Technologies remain unresolved execution risks.