Do Wall Street Analysts Like General Dynamics Stock?

General Dynamics Corporation (GD), based in Reston, Virginia, is a leading global aerospace and defense company with a market cap of $94 billion. The company offers a wide range of products and services in business aviation, combat vehicles, weapons systems, munitions, shipbuilding design and construction, information systems, and technologies.

Over the past year, GD’s stock has outperformed the broader market significantly, with a 41.2% increase compared to the S&P 500 Index’s 11.8% rally. In 2026, GD’s stock rose by 3.3%, surpassing the SPX’s marginal decline on a year-to-date basis. However, when compared to the SPDR S&P Aerospace & Defense ETF (XAR), GD’s performance has been underwhelming. The ETF has gained about 59.2% over the past year and 12.2% year-to-date, outshining GD’s single-digit returns.

General Dynamics’ performance has been driven by strong demand in Aerospace and Combat Systems, with notable order intake in defense segments and Gulfstream jets. The company’s management is focused on expanding shipyard production and investing in next-gen defense technology, although they remain cautious due to cost inflation and supply chain constraints.

On Jan. 28, GD shares closed down by 2.7% after reporting its Q4 results. The company exceeded Wall Street expectations with an EPS of $4.17 (compared to $4.11 expected) and revenue of $14.4 billion (compared to $13.8 billion expected).

Analysts expect GD’s EPS to grow by 5.2% to $16.26 on a diluted basis for fiscal 2026. The company has a strong earnings surprise history, beating the consensus estimate in each of the last four quarters. Among the 23 analysts covering GD stock, the consensus is a “Moderate Buy” with 12 “Strong Buy” ratings, 10 “Holds,” and one “Strong Sell.”

Recently, Jefferies Financial Group Inc. (JEF) analyst Sheila Kahyaoglu maintained a “Hold” rating on GD and raised the price target to $385, implying a potential upside of 10.7% from current levels.

Overall, General Dynamics Corporation continues to be a strong player in the aerospace and defense industry, with a focus on innovation and growth despite challenges in the market.