Why General Dynamics Stock Is Rising
Key Points
General Dynamics saw growth in all four of its major business lines.
President Trump's $1.5 trillion defense budget request could be a powerful growth driver.
- 10 stocks we like better than General Dynamics ›
Shares of General Dynamics (NYSE: GD) rose this past week after the aerospace and defense giant delivered strong quarterly results.
The Gulfstream G500. Image source: General Dynamics.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Broad-based gains
General Dynamics' first-quarter revenue climbed 10.3% year over year to $13.5 billion.
Sales of the shipbuilder's marine systems jumped 21% to $4.3 billion, driven by orders of Virginia and Columbia class submarines. Higher demand for artillery units drove a 4.9% increase in sales of the defense contractor's combat systems to $2.3 billion. And technologies revenue rose 4.2% to $3.6 billion.
Revenue in the company's aerospace division, which designs and builds Gulfstream business jets, grew by 8.4% to $3.3 billion.
All told, General Dynamics' operating earnings leaped 12% to $1.4 billion, or $4.10 per share.
Better still, the company generated free cash flow of nearly $2 billion, which enabled it to reward shareholders with $405 million in dividends.
Demand for defensive systems is rising
General Dynamics' order backlog swelled to $188.4 billion in total estimated contract value by quarter's end. That impressive figure is likely to grow even larger in the coming years.
General Dynamics stands to benefit from the Trump administration's proposed $1.5 trillion defense budget. The request represents the largest annual increase in national security spending since World War II.
Should you buy stock in General Dynamics right now?
Before you buy stock in General Dynamics, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and General Dynamics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,473!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,216,605!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 202% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 3, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
