RESTON – October 30, 2026 -- General Dynamics booked $98.8 billion in orders in the third quarter of 2026, a company-wide book-to-bill ratio of 6.8-to-1. Backlog rose to $220.3 billion, while revenue grew 12.9% year over year to $14.6 billion.
Earnings and margin rise across all four segments
Operating earnings reached $1.5 billion, up 14.7% from the year-ago quarter. Diluted earnings per share rose 15.7% to $4.49. Operating margin was 10.5%, a 20-basis-point expansion. Revenue grew in all four segments.
Chairman and CEO Phebe Novakovic called the results "exceptional" and cited consistent backlog growth and a decade of heavy investment in the businesses as the basis for continued performance.
Submarine awards lift defense orders to $93.8 billion
Defense segments received $93.8 billion in orders, driven by large Marine Systems awards for Virginia- and Columbia-class submarines. The defense book-to-bill ratio was 8.5-to-1.
The Aerospace segment added $5 billion in orders, a book-to-bill ratio of 1.4-to-1.
Backlog reaches $220.3 billion, with total contract value at $270.7 billion
Estimated potential contract value stood at $50.4 billion. Management defines it as additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options. Added to backlog, total estimated contract value reached $270.7 billion.
Operating cash flow of $1.7 billion covers dividends, capex and $500 million of debt paydown
Cash from operating activities totaled $1.7 billion, or 139% of net earnings. The company paid $429 million in dividends and invested $481 million in capital expenditures. It also reduced total debt by $500 million.
General Dynamics ended the quarter with $7 billion in total debt and $4.4 billion in cash and equivalents.