General Dynamics (GD) Is Up 5.7% After Reporting Higher Q2 Revenue and Earnings

• On July 23, 2025, General Dynamics Corporation reported second quarter results showing revenue of US$13.04 billion and net income of US$1.01 billion, both higher than the same period last year, with basic earnings per share rising to US$3.78 from US$3.30.
• This performance marks sustained growth for the company, with six-month net income reaching US$2.01 billion and earnings advances reflected across both basic and diluted measures.
• We'll examine how General Dynamics' strong revenue and earnings growth this quarter impacts its long-term investment outlook amid sector trends.

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General Dynamics Investment Narrative Recap

Anyone considering General Dynamics as an investment needs to believe in the long-term durability of defense demand and the company’s ability to turn a record backlog into sustainable growth. The latest quarterly results underscore solid revenue and earnings gains, but do not materially shift the near-term focus from supply chain reliability, which remains the biggest risk, or from the company’s drive to capitalize on strong global defense orders, a key catalyst for future performance.

The buyback announcement is less relevant this quarter, as there were no new share repurchases reported, emphasizing a pause in capital returns during a period when operational execution and meeting delivery targets likely matter more to investors monitoring catalysts in the sector.

Yet, in contrast to upbeat earnings, investors should also be mindful of persistent supply chain pressures that could...

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

General Dynamics is expected to reach $54.5 billion in revenue and $4.9 billion in earnings by 2028. This scenario assumes a 3.4% annual revenue growth rate and a $0.9 billion increase in earnings from the current $4.0 billion.

Uncover how General Dynamics' forecasts yield a $305.31 fair value, a 3% downside to its current price.

Exploring Other Perspectives

Fair value estimates among 9 Simply Wall St Community members range from US$258.57 to US$418.59 per share. Many highlight the company's record backlog as crucial for potential performance, while others stress ongoing supply chain risk as a key consideration. Explore these perspectives to see how your view compares.

Explore 9 other fair value estimates on General Dynamics - why the stock might be worth as much as 33% more 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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