Updated Version 3 - General Dynamics raises annual performance outlook due to strong orders for Gulfstream aircraft and ship business

Updated the share price movement in paragraph 1, added details of the annual forecasts in paragraphs 1 to 3, and included CEO comments in paragraph 7

Reuters, October 30 - General Dynamics (GD.N) raised its 2026 revenue and profit forecasts on Friday after reporting third-quarter results that exceeded expectations, thanks to strong demand for Gulfstream business jets and submarine programs.

Ongoing wars have led to increased military spending, and with demand for private aviation remaining strong, the company's order growth continues across all business segments.

General Dynamics received nearly $99 billion in new orders this quarter, including contracts for five additional Columbia-class submarines and nine Virginia-class submarines, bringing the total backlog to a record $220.3 billion—more than double the amount at the same time last year.

CEO Phebe Novakovic said on the earnings call Friday that as longstanding supply chain and labor bottlenecks ease, “actual work hours at the company’s shipyards have risen significantly.”

General Dynamics reported $5 billion in new orders for its aerospace division this quarter.

Deliveries of Gulfstream jets increased to 40 aircraft this quarter, up from 39 a year earlier.

The company’s share price rose 2%.

The defense contractor now expects earnings per share in 2026 to be between $17.20 and $17.30, up from its previous forecast of $16.80 to $16.90.

The company anticipates annual revenue between $56.5 billion and $56.8 billion, higher than its earlier outlook of about $55.7 billion.

According to data compiled by the London Stock Exchange Group (LSEG), the company’s third-quarter earnings per share came in at $4.49, beating analysts’ average prediction of $4.13.

Revenue rose nearly 13% year-on-year to $14.57 billion, surpassing the expected $13.73 billion.

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