GD · Q1 FY2026
GENERAL DYNAMICS CORP Q1 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $13.48B | $12.22B (yr ago) | Beat |
| EPS | Not disclosed | Not disclosed (yr ago) | Miss |
| Free Cash Flow | $1.95B, mechanically calculated | -$0.29B (yr ago) | Beat |
| Gross Margin | Not meaningful | Not meaningful (yr ago) | Miss |
| Operating Margin | 10.5% pre-tax proxy | 10.4% (yr ago) | Beat |
What changed
Revenue increased 10.3% year over year to $13.48 billion, while the supplied pre-tax margin proxy improved only 10 basis points to 10.5%. Mechanically calculated free cash flow swung to $1.95 billion from negative $0.29 billion, although free cash flow is not treated as a primary analytical measure here. Quarterly EPS was not disclosed in the supplied data.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise, so this update establishes a $339.90 base-case value. The quarter supports the earnings base through stronger revenue and cash generation, but limited margin expansion and missing quarterly EPS do not justify a more aggressive valuation.