AI Partnerships And A Higher Dividend Might Change The Case For Investing In General Dynamics (GD)

• General Dynamics’ board has declared a regular quarterly dividend of US$1.50 per share, payable on February 6, 2026, to shareholders of record as of January 16, 2026.
• This payout comes as the company reports consecutive quarters of double-digit earnings growth, record defense backlogs, and expanding AI and cloud partnerships that could reshape its long-term revenue streams.
• We’ll now examine how General Dynamics’ recent AI and cloud collaboration with Google Public Sector influences the company’s broader investment narrative.

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General Dynamics Investment Narrative Recap

To own General Dynamics, you need to be comfortable with a defense and aerospace story anchored in long-cycle U.S. government programs, record backlogs, and steady dividend payments. The latest dividend affirmation largely reinforces this longer term thesis and does not materially alter the nearer term focus on contract execution in Marine Systems or the key risk around legal, supply chain, and wage related challenges that could pressure margins.

The most relevant recent development to set alongside this dividend is GDIT’s expanded AI and cloud collaboration with Google Public Sector, which sits squarely within the Technologies segment. That partnership ties directly into one of General Dynamics’ main potential growth drivers: rising demand for secure IT modernization and mission software, which could become an increasingly important counterbalance to any earnings volatility in more capital intensive platforms.

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Read the full narrative on General Dynamics (it's free!)

General Dynamics' narrative projects $55.8 billion revenue and $5.1 billion earnings by 2028. This requires 3.6% yearly revenue growth and about a $1.0 billion earnings increase from $4.1 billion today.

Uncover how General Dynamics' forecasts yield a $380.80 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span roughly US$317 to US$381 per share, underscoring how differently individual investors view General Dynamics. You may want to compare those views with the company’s dependence on record defense backlogs as a key earnings driver over the coming years.

Explore 6 other fair value estimates on General Dynamics - why the stock might be worth 6% less than the current price!

Build Your Own General Dynamics Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your General Dynamics research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free General Dynamics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate General Dynamics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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