General Dynamics' stock fell 5.38% as it hit a 5-day low amid broader market gains, with the Nasdaq-100 up 0.69% and the S&P 500 up 0.23%.
The company reported strong Q4 earnings, with a GAAP EPS of $4.17, exceeding expectations by $0.06, and revenues of $14.4 billion, surpassing forecasts by $620 million. This robust performance reflects the company's adaptability amid rising global defense spending, with a significant order backlog of $118 billion and a book-to-bill ratio of 1.5 for the year, indicating strong future growth potential.
Despite the stock's decline, the strong earnings report is likely to enhance investor confidence and attract interest, suggesting that the fundamentals remain solid even in the face of short-term price fluctuations.
Wall Street analysts forecast GD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GD is 386.85 USD with a low forecast of 360.00 USD and a high forecast of 410.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast GD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GD is 386.85 USD with a low forecast of 360.00 USD and a high forecast of 410.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Buy
8 Hold
0 Sell
Moderate Buy
Current: 366.620
Low
360.00
Averages
386.85
High
410.00
Current: 366.620
Low
360.00
Averages
386.85
High
410.00
Seaport Research
Richard Safran
maintain
$376 -> $444
2026-01-22
Reason
Seaport Research
Richard Safran
Price Target
$376 -> $444
AI Analysis
2026-01-22
maintain
Reason
Seaport Research analyst Richard Safran raised the firm's price target on General Dynamics to $444 from $376 and keeps a Buy rating on the shares. The firm believes Defense spending growth will be "far bigger and last longer" than expected, the analyst tells investors.
Scotiabank
Outperform
to
Sector Perform
downgrade
2026-01-21
Reason
Scotiabank
Price Target
2026-01-21
downgrade
Outperform
to
Sector Perform
Reason
Scotiabank downgraded Bombardier (BDRBF) to Sector Perform from Outperform with a price target of C$295, up from C$230, "solely on valuation" with the multiple doubling over the past year and largely closing the gap to its closest peer, General Dynamics (GD). The firm believes the multiple expansion is justified by management's continued solid execution on deleveraging, diversification and earnings growth, the analyst tells investors.
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JPMorgan
Overweight
maintain
$380 -> $385
2025-12-19
Reason
JPMorgan
Price Target
$380 -> $385
2025-12-19
maintain
Overweight
Reason
JPMorgan raised the firm's price target on General Dynamics to $385 from $380 and keeps an Overweight rating on the shares as part of its aerospace and defense outlook for 2026. The outlook for sector remains mostly positive into 2026, the analyst tells investors in a research note. In aerospace, JPMorgan expects strong demand and a gradual supply increase to drive "visible growth." The outlook for defense is "more nuanced," the firm adds.
Morgan Stanley
Equal Weight -> Overweight
upgrade
$385 -> $408
2025-12-16
Reason
Morgan Stanley
Price Target
$385 -> $408
2025-12-16
upgrade
Equal Weight -> Overweight
Reason
Morgan Stanley upgraded General Dynamics to Overweight from Equal Weight with a price target of $408, up from $385, as part of its 2026 outlook for aerospace and defense. The firm sees aerospace and defense as attractive going into 2026, saying demand continues to outpace supply growth. The defense sector offers good value as the stocks are not reflecting the growth in U.S. defense budget, the analyst tells investors in a research note.
About GD
General Dynamics Corporation is a global aerospace and defense company. It offers a portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions, and technology products and services. Its segments include Aerospace, Marine Systems, Combat Systems and Technologies. The Aerospace segment produces business jets and is the standard bearer in new technology aircraft, aircraft repair, customer support and custom completion services. The Marine Systems segment designs and builds nuclear-powered submarines and is engaged in surface combatant and auxiliary ship design and construction for the U.S. Navy. The Combat Systems segment manufactures land combat solutions worldwide, including wheeled and tracked combat vehicles, weapons systems and munitions. The Technologies segment provides a full spectrum of services, technologies and products to a range of military, intelligence, federal civilian and state customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
