RESTON, Virginia -- General Dynamics reported first-quarter 2026 revenue of $13.5 billion, representing a 10.3 percent increase over the $12.2 billion recorded in the same period in the prior year. Supported by growth across all four primary business segments, net earnings for the quarter rose to $1.13 billion, a 13 percent improvement compared to the $994 million generated in the first quarter of 2025.
"Our businesses had a very good start to the year, delivering strong operating results and excellent cash conversion," said Phebe Novakovic, chairman and chief executive officer. "We are positioned well to drive additional performance throughout the year."
The company recorded significant order activity during the quarter, with total awards reaching $26.6 billion. Total estimated contract value, which includes both funded backlog and potential value from unexercised options and indefinite delivery, indefinite quantity (IDIQ) contracts, reached $188.4 billion. The funded backlog specifically stood at $130.8 billion. This robust accumulation of awards aligns with long-term force-structure modernization priorities, particularly in naval and combat platforms, providing extended visibility into the production pipeline.
Management indicated that the company is well-positioned to maintain operational performance throughout the remainder of the year. Demand remains driven by both steady domestic modernization requirements and increased international interest in land and technology systems.
INDUSTRY SEGMENTS
Aerospace
The Aerospace segment reported revenue of $3.28 billion, an 8.4 percent increase over the previous year, supported by a book-to-bill ratio of 1.2-to-1 for the quarter. Performance was driven by steady demand for business aviation platforms and continued deliveries across the Gulfstream product line. The segment continues to benefit from a recovery in international corporate travel demand and a competitive product mix that addresses both large-cabin and mid-range requirements.
Operating income for the Aerospace segment reached $493 million, up 14.1 percent from the prior-year period, resulting in an operating margin of 15 percent. Profitability remained stable as the segment managed the transition between various aircraft production phases. Operating margins reflected the maturity of current production models and the ongoing ramp-up of newer variants. Execution factors remained focused on supply chain stability and meeting delivery schedules for a growing customer base.
Marine Systems
Revenue in the Marine Systems segment rose 21 percent to $4.34 billion, supported by sustained high-volume production on major U.S. Navy programs, including the Virginia-class and Columbia-class submarine initiatives. As the primary driver of the company’s long-term defense backlog, the segment continues to experience steady demand for nuclear-powered vessels and surface combatant modernization.
The segment generated operating income of $316 million, a 26.4 percent increase over the first quarter of 2025, with an operating margin of 7.3 percent. Profitability for Marine Systems reflected the heavy weighting of long-term, fixed-price-incentive contracts. Margins were influenced by the progress of lead-ship construction and the efficiencies gained through serial production. The segment’s profitability remains tied to meeting milestones on complex, multi-year naval construction schedules.
Combat Systems
The Combat Systems segment reported revenue of $2.28 billion, a 4.9 percent increase due to demand for land platforms and international munitions orders. Key programs involving the M1 Abrams tank and Stryker vehicle variants provided a consistent foundation for segment sales, supplemented by rising requirements for tactical vehicles and artillery components in response to global security environments.
Segment operating income rose 6.5 percent to $310 million, yielding an operating margin of 13.6 percent. Profitability showed improvement as a result of favorable contract mix and increased volume. Operating margins benefited from the maturity of established vehicle programs and the commencement of new international contract awards. Management’s focus on manufacturing efficiency helped mitigate inflationary pressures on raw materials and components.
Technologies
The Technologies segment reported revenue of $3.58 billion, a 4.2 percent increase driven by both defense and federal civilian requirements for IT modernization and mission-critical systems. Demand for secure communications, cloud integration, and cybersecurity services remains high, reflecting a shift toward digital modernization within the Department of Defense and other government agencies.
Operating income in the Technologies segment was $339 million, a 3.4 percent increase over the prior year, resulting in a 9.5 percent operating margin. Profitability remained robust, characterized by a mix of service-based and product-oriented contracts. Operating margins were supported by strong execution on large-scale IT infrastructure programs and the successful integration of advanced technical solutions. The segment’s performance indicates a stable outlook based on the recurring nature of government technology service contracts.
