General Dynamics Corporation (GD) is a major U.S. global aerospace and defense company headquartered in Reston, Virginia. Valued at $95.6 billion by market cap, it operates through four principal business segments, Aerospace, Marine Systems, Combat Systems, and Technologies, offering a diversified portfolio of products and services that includes business jets, nuclear-powered submarines and other naval vessels, armored combat vehicles and weapons systems, and secure communications, command-and-control, and IT solutions for military and government customers worldwide.
The defense giant is expected to announce its fiscal fourth-quarter earnings for 2025 soon. Ahead of the event, analysts expect GD to report a profit of $4.12 per share on a diluted basis, down marginally from $4.15 per share in the year-ago quarter. The company beat the consensus estimates in each of the last four quarters.
For FY2025, analysts expect GD to report EPS of $15.40, up 13% from $13.63 in fiscal 2024. Its EPS is expected to rise 11.6% year-over-year to $17.19 in fiscal 2026.
GD shares have surged 35.4% over the past year, surpassing the S&P 500 Index’s ($SPX) 17.7% gains and the Industrial Select Sector SPDR Fund’s (XLI) 21.9% gains over the same time frame.
On Jan. 8, shares of General Dynamics rose 3.1% after President Donald Trump called for a sharp increase in the U.S. military budget for 2027, proposing $1.5 trillion versus $901 billion approved for the prior year. The announcement sparked a broad rally across the defense sector on expectations of higher government spending and contract awards.
Analysts’ consensus opinion on GD stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 12 advise a “Strong Buy” rating, 10 give a “Hold,” and one recommends a “Strong Sell.” Its mean price target of $379.80 implies an upswing potential of 7.3% from the current market prices.
On the date of publication, Kritika Sarmah 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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