General Dynamics Corporation (GD), headquartered in Reston, Virginia, operates as a global aerospace and defense company. Valued at $94 billion by market cap, the company offers a broad portfolio of products and services in business aviation, combat vehicles, weapons systems, munitions, shipbuilding design and construction, information systems, and technologies.
Shares of this defense giant have outperformed the broader market considerably over the past year. GD has gained 41.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 11.8%. In 2026, GD’s stock rose 3.3%, surpassing the SPX’s marginal fall on a YTD basis.
Narrowing the focus, GD’s underperformance is apparent compared to the SPDR S&P Aerospace & Defense ETF (XAR). The exchange-traded fund has gained about 59.2% over the past year. Moreover, the ETF’s 12.2% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.
General Dynamics' performance was driven by strong demand in Aerospace and Combat Systems, with notable order intake in defense segments and Gulfstream jets. Management is focused on expanding shipyard production and investing in next-gen defense tech, but remains cautious due to cost inflation and supply chain constraints.
On Jan. 28, GD shares closed down by 2.7% after reporting its Q4 results. Its EPS of $4.17 surpassed Wall Street expectations of $4.11. The company’s revenue was $14.4 billion, topping Wall Street forecasts of $13.8 billion.
For fiscal 2026, ending in December, analysts expect GD’s EPS to grow 5.2% to $16.26 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering GD stock, the consensus is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, 10 “Holds,” and one “Strong Sell.”
This configuration is more bullish than two months ago, with 11 analysts suggesting a “Strong Buy.”
On Feb. 1, Jefferies Financial Group Inc. (JEF) analyst Sheila Kahyaoglu kept a “Hold” rating on GD and raised the price target to $385, implying a potential upside of 10.7% from current levels.
The mean price target of $390.40 represents a 12.3% premium to GD’s current price levels. The Street-high price target of $444 suggests an upside potential of 27.7%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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