GD

The market expects General Dynamics (GD) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 30. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This defense contractor is expected to post quarterly earnings of $4.14 per share in its upcoming report, which represents a year-over-year change of +6.7%. Revenues are expected to be $13.69 billion, up 6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.09% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For General Dynamics, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.77%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that General Dynamics will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that General Dynamics would post earnings of $3.95 per share when it actually produced earnings of $4.24, delivering a surprise of +7.34%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. General Dynamics appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Huntington Ingalls (HII), another stock in the Zacks Aerospace - Defense industry, is expected to report earnings per share of $4.41 for the quarter ended September 2026. This estimate points to a year-over-year change of +19.8%. Revenues for the quarter are expected to be $3.39 billion, up 6.1% from the year-ago quarter. The consensus EPS estimate for Huntington Ingalls has been revised 1.8% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.74%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Huntington Ingalls will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report General Dynamics Corporation (GD) : Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

General Dynamics (NYSE: GD) is scheduled to report earnings on Friday, October 30, 2026. The company has a market value of about $93.1 billion. Over the last twelve months, it generated $54.9 billion in revenue and $5.7 billion in operating profit, with net income of $4.5 billion. The reaction will turn on how the results and guidance land against expectations. Before the release, it helps to know how the stock has behaved after previous reports, and whether an early move has tended to carry on. See the earnings reaction history of all stocks General Dynamics' Historical Odds Of A Positive Post-Earnings Return Some observations on one-day (1D) post-earnings returns, measured from the last close before each release: - There are 20 earnings releases in the last five years, with 9 positive and 11 negative one-day (1D) returns. Positive 1D returns were seen 45% of the time. - Over the last three years that share falls to 42%, across 12 releases. - The median of the 9 positive 1D returns is 2.7%, and the median of the 11 negative ones is -3.3%. - The largest one-day reactions were 8.0% and -4.2%. The table below shows the 1D, 5-day (5D) and 21-day (21D) returns after each release, followed by summary statistics. Earnings Date | 1D | 5D | 21D 7/29/2026 | -3.1% | -1.9% | -2.8% 4/29/2026 | 8.0% | 11.3% | 11.2% 1/28/2026 | -2.7% | -3.1% | -4.3% 10/24/2025 | 2.7% | 0.9% | -0.3% 7/23/2025 | 6.5% | 5.7% | 6.7% 4/23/2025 | -3.3% | -1.0% | 1.1% 1/29/2025 | -4.2% | -2.0% | -4.2% 10/23/2024 | -0.5% | -1.4% | -8.5% 7/24/2024 | -3.3% | -0.5% | -0.1% 4/24/2024 | -4.0% | -1.9% | 1.8% 1/24/2024 | 4.7% | 7.7% | 9.2% 10/25/2023 | 4.0% | 3.6% | 6.2% 7/26/2023 | 2.2% | 3.4% | 3.1% 4/26/2023 | -3.6% | -4.4% | -7.3% 1/25/2023 | -3.6% | -1.0% | -1.7% 10/26/2022 | -0.02% | 1.7% | 2.7% 7/27/2022 | 1.0% | 4.3% | 7.7% 4/27/2022 | 1.3% | -1.5% | -7.1% 1/26/2022 | -0.5% | 3.4% | 6.1% 10/27/2021 | 0.6% | -1.4% | -2.8% Statistic | 1D | 5D | 21D # Positive | 9 | 9 | 10 # Negative | 11 | 11 | 10 Median Positive | 2.7% | 3.6% | 6.1% Median Negative | -3.3% | -1.5% | -3.5% Max Positive | 8.0% | 11.3% | 11.2% Max Negative | -4.2% | -4.4% | -8.5% Does The First Move Carry On? Another approach is to wait for the initial reaction and ask whether it tends to continue. The table below shows the correlation between the 1D return and the return over the following 5 and 21 trading days, and between the 5D return and the following 21 trading days. A value near 1 means the first move has tended to continue; near -1, to reverse; near 0, no consistent pattern. None of these correlations are strong enough to trade on: all are below 0.40 in absolute terms over five years, so the early post-earnings move has not reliably predicted what followed. History | 1D vs next 5D | 1D vs next 21D | 5D vs next 21D 5 Years | -0.15 | -0.02 | 0.27 3 Years | -0.35 | -0.04 | 0.09 Does A Peer That Reports First Offer A Clue? RTX usually reports a day or a few days before General Dynamics. It reported this season on October 20, 2026, and its one-day reaction was a 0.6% gain. The table compares RTX's one-day reaction to its earnings with General Dynamics' one-day reaction to its subsequent report. It covers the 19 quarters in which RTX reported first; in July 2024 RTX reported a day later. The correlation is -0.06, close to zero, so RTX's reaction has not foreshadowed General Dynamics' in either direction. GD Earnings Date | GD 1D | RTX 1D 7/29/2026 | -3.1% | 7.3% 4/29/2026 | 8.0% | -4.4% 1/28/2026 | -2.7% | 3.7% 10/24/2025 | 2.7% | 7.7% 7/23/2025 | 6.5% | -1.6% 4/23/2025 | -3.3% | -9.8% 1/29/2025 | -4.2% | 2.6% 10/23/2024 | -0.5% | -0.3% 4/24/2024 | -4.0% | -0.2% 1/24/2024 | 4.7% | 5.3% 10/25/2023 | 4.0% | 7.2% 7/26/2023 | 2.2% | -10.2% 4/26/2023 | -3.6% | -1.3% 1/25/2023 | -3.6% | 3.3% 10/26/2022 | -0.02% | -1.5% 7/27/2022 | 1.0% | -4.6% 4/27/2022 | 1.3% | -0.4% 1/26/2022 | -0.5% | 2.5% 10/27/2021 | 0.6% | -2.3% Correlation | - | -0.06 An earnings release can move one stock sharply in either direction. A diversified portfolio spreads that risk. The Trefis High Quality (HQ) Portfolio holds about 30 quality businesses, rebalanced with rules, and has a track record of outperforming a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000.

Hexcel Corporation HXL reported third-quarter 2026 adjusted earnings of 50 cents per share, which improved 35.1% from the year-ago quarter's figure of 37 cents. The bottom line also surpassed the Zacks Consensus Estimate of 48 cents by 4.2%. The company reported GAAP earnings of 50 cents per share, which surpassed the year-ago quarter's earnings of 26 cents. The company's net sales totaled $496.4 million, which missed the Zacks Consensus Estimate of $500 million by 0.8%. The top line, however, witnessed an improvement of 8.8% from the year-ago quarter's figure of $456.2 million. Hexcel Corporation price-consensus-eps-surprise-chart | Hexcel Corporation Quote Hexcel's gross margin was 23.3%, which increased 140 basis points from the prior-year quarter. The improvement can be attributed to higher sales volume and favorable operating leverage. Selling, general and administrative expenses increased 9.2% year over year to $44.9 million. Meanwhile, research and development expenses rose 15.7% year over year to $16.2 million. HXL's adjusted operating income was $54.4 million compared with $44.8 million in the year-ago period. Commercial Aerospace: Net sales increased 20.5% year over year to $330.3 million, driven by growth in the Airbus A350 and Boeing 787 widebody programs, as well as the Airbus A320 and Boeing MAX narrowbody programs. This market contributed 66.5% to total revenues in the third quarter of 2026. Defense, Space & Other: Net sales decreased 8.7% year over year to $166.1 million due to the divestment of the Austrian-based industrial business and the closure of a non-core industrial business in Leicester, UK. Temporary softness in the F-35 and an international fighter program, along with lower launcher and rocket motor sales, also weighed on performance. This market contributed 33.5% to total revenues in the third quarter of 2026. As of Sept. 30, 2026, Hexcel's cash and cash equivalents were $77.8 million compared with $71 million as of Dec. 31, 2025. The company's long-term debt totaled $934.9 million as of Sept. 30, 2026, down from $993 million at 2025-end. HXL's cash flow from operating activities was $171.1 million for the first nine months of 2026 compared with $105 million in the prior-year period. Hexcel expects to generate sales in the range of $2.03-$2.13 billion for 2026. The Zacks Consensus Estimate is pegged at $2.08 billion, which lies above the midpoint of the company's sales guidance. HXL also expects its adjusted earnings per share to be in the range of $2.30-$2.40 for 2026. The Zacks Consensus Estimate is currently pegged at $2.37 per share, which lies above the midpoint of the company's guided range. Hexcel expects to generate a free cash flow of more than $195 million in 2026. It also expects capital expenditure to be less than $100 million. Hexcel currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Boeing Company BA is set to report third-quarter 2026 earnings on Oct. 27, 2026, before market open. The Zacks Consensus Estimate for BA's loss is pegged at 14 cents per share. The consensus estimate for its sales is pegged at $24.53 billion, indicating year-over-year growth of 5.4%. Huntington Ingalls Industries HII is set to report third-quarter 2026 earnings on Oct. 29, 2026, before market open. The consensus estimate for HII's earnings is pegged at $4.45 per share. The consensus estimate for its sales is pegged at $3.39 billion, indicating year-over-year growth of 6.1%. General Dynamics Corporation GD is set to report third-quarter 2026 results on Oct. 30, 2026, before the market opens. The Zacks Consensus Estimate for GD's earnings is pegged at $4.14 per share. The consensus estimate for its sales is pegged at $13.71 billion, indicating year-over-year growth of 6.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hexcel Corporation (HXL) : Free Stock Analysis Report The Boeing Company (BA) : Free Stock Analysis Report General Dynamics Corporation (GD) : Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lockheed Martin Corporation LMT reported third-quarter 2026 adjusted earnings of $7.97 per share, which beat the Zacks Consensus Estimate of $7.49 by 6.4%. The bottom line increased 14.7% from the year-ago quarter's reported figure of $6.95. Net sales were $20.71 billion, which beat the Zacks Consensus Estimate of $20.44 billion by 1.4%. The top line inched up 11.3% from $18.61 billion reported in the year-ago quarter. The year-over-year improvement was driven by higher sales growth registered by LMT's business segments. Lockheed Martin Corporation price-consensus-eps-surprise-chart | Lockheed Martin Corporation Quote LMT's backlog as of Sept. 27, 2026, was $291.98 billion compared with $193.62 billion as of Dec. 31, 2025. The Aeronautics segment accounted for $57.33 billion of the total backlog amount, while the Missiles and Fire Control segment contributed $142.52 billion. The Rotary and Mission Systems segment contributed $49.44 billion, while the Space unit accounted for $42.70 billion. Aeronautics: Sales increased 13% year over year to $8.21 billion. The increase was primarily driven by higher sales from the F-35 program, reflecting higher volume on production and sustainment contracts, as well as increased sales from the C-130 program. The segment reported an operating profit of $743 million compared with $682 million in the year-ago quarter. The operating margin contracted 40 basis points (bps) to 9.0%. Missiles and Fire Control: Quarterly sales improved 24% year over year to $4.50 billion. This was primarily attributable to higher sales from integrated air and missile defense programs, including PAC-3 and THAAD, as well as tactical and strike missile programs, including GMLRS and PrSM, driven by production ramps. The segment's operating profit increased to $631 million from $510 million in the prior-year quarter. The operating margin contracted 10 bps to 14.0%. Space: The top line improved 4% year over year to $3.49 billion, driven primarily by higher sales from strategic and missile defense programs, reflecting increased volume on the Fleet Ballistic Missile and Next Generation Interceptor programs. This growth was partially offset by lower sales from national security space programs. The segment's operating profit remained unchanged at $331 million. The operating margin contracted 40 bps to 9.5%. Rotary and Mission Systems: Quarterly revenues increased 3% year over year to $4.51 billion, driven by higher sales from Sensors, Effectors & Mission Systems programs due to increased volume on radar programs. The segment reported an operating profit of $524 million compared with $506 million in the second quarter of 2025. The operating margin remained unchanged at 11.6%. Lockheed's cash and cash equivalents totaled $5.96 billion as of Sept. 27, 2026, compared with $4.12 billion at the end of 2025. Cash from operating activities amounted to $3.44 billion in the third quarter of 2026 compared with $3.73 billion in the year-ago quarter. Long-term debt as of Sept. 27, 2026, totaled $20.50 billion compared with $20.53 billion at the end of 2025. Lockheed expects to generate sales in the range of $80.00-$82.00 billion in 2026 compared with its previous guidance of $79.75-$81.75 billion. The Zacks Consensus Estimate is pegged at $80.86 billion, which lies below the midpoint of the company's sales guidance. LMT expects to generate adjusted EPS in the range of $30.35-$30.75 compared with its previous guidance of $29.95-$30.65. The consensus estimate is currently pegged at $30.43 per share, which lies below the midpoint of the company's guidance. Lockheed expects to generate cash from operations in the range of $10.00-$10.20 billion. It expects capital expenditures of approximately $2.10-$2.30 billion. Lockheed expects to generate free cash flow of approximately $7.80-$8.00 billion. LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Boeing Company BA is set to report third-quarter 2026 earnings on Oct. 27, 2026, before market open. The Zacks Consensus Estimate for BA's loss is pegged at 14 cents per share. The consensus estimate for its sales is pegged at $24.53 billion, indicating year-over-year growth of 5.4%. Huntington Ingalls Industries HII is set to report third-quarter 2026 earnings on Oct. 29, 2026, before market open. The consensus estimate for HII's earnings is pegged at $4.45 per share. The consensus estimate for its sales is pegged at $3.39 billion, indicating year-over-year growth of 6.1%. General Dynamics Corporation GD is set to report third-quarter 2026 results on Oct. 30, 2026, before market open. The Zacks Consensus Estimate for GD's earnings is pegged at $4.14 per share. The consensus estimate for its sales is pegged at $13.71 billion, indicating year-over-year growth of 6.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report The Boeing Company (BA) : Free Stock Analysis Report General Dynamics Corporation (GD) : Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The Boeing Company BA is expected to report third-quarter 2026 results on Oct. 27, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of 21 cents per share. The Zacks Consensus Estimate for revenues is pinned at $24.53 billion, indicating growth of 5.4% from the year-ago reported figure. Image Source: Zacks Investment Research The company beat on earnings in one of the trailing four quarters and missed in the other three, delivering an average negative surprise of 113.46%. Image Source: Zacks Investment Research Our proven model does not predict an earnings beat for Boeing this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. Earnings ESP: The company's Earnings ESP is -6.11%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: Currently, Boeing has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Some stocks in the same industry that have the combination of factors indicating an earnings beat are Howmet Aerospace HWM and General Dynamics GD. Howmet Aerospace and General Dynamics have an Earnings ESP of +0.21% and +1.44%, respectively. HWM sports a Zacks Rank #1 and GD carries a Zacks Rank #3 at present. Boeing's commercial aircraft business could have been a key positive driver for third-quarter 2026 performance due to production stabilization and increased delivery volumes. The 737 program began transitioning toward a production rate of 47 aircraft per month, and Boeing continued working toward its target of delivering 500 737s during 2026. If production and deliveries progressed as planned in the third quarter, higher volumes could have supported revenue growth, better factory utilization and improved operating performance. Rising international air travel increased aircraft utilization, driving higher demand for commercial jet maintenance, repairs, and related services, which likely supported sales volumes for Boeing's commercial services. Growing defense needs must have boosted government spending on aftermarket aircraft repair, support, and upgrades, lifting demand for government jet services. Stronger commercial services revenues, combined with the typically higher margins of government services, are expected to have supported both top-line growth and operating earnings at Boeing Global Services in the third quarter. Management expects third-quarter free cash flow to remain positive in the low hundreds of millions of dollars, even after a planned $700 million payment to the U.S. Department of Justice. If Boeing meets these expectations in the upcoming results, this would demonstrate greater financial stability and progress toward reducing debt. During the third quarter, Boeing and GM completed the sale of HRL Laboratories, LLC, which was a 50/50 joint venture between Boeing and GM, to IBM. This could help management prioritize aircraft production, manufacturing quality and the execution of major customer programs during the quarter. In the quarter under review, Boeing's commercial aircraft deliveries grew 0.6% year over year, reflecting continued recovery in production and delivery momentum. On the defense side, shipments increased 3.1% from the prior-year period's level. Improved deliveries should have bolstered both top and bottom-line performances of Boeing's commercial and defense business segments in the third quarter. During the second quarter, management said 787 engine deliveries had fallen behind plan in the first half of the year and that corrective actions were being coordinated with GE. The company also noted that outstanding seat certifications could make 787 deliveries uneven throughout the remainder of 2026. Engine availability and supplier readiness are important for increasing production rates and meeting annual delivery targets. Any further delays could push deliveries and cash receipts into later periods, weakening quarterly revenues. Although management anticipated engine deliveries to resume in the third quarter, uncertainty remained over whether the underlying supply-chain challenges would be fully resolved. Over the past month, the stock has lost 3.9% compared with the industry's decline of 4.8%. Image Source: Zacks Investment Research Boeing is currently trading at a discount compared to its industry on a forward 12-month P/S basis. Image Source: Zacks Investment Research General Dynamics is also trading at a discount, while Howmet Aerospace is trading at a premium compared to their industry on a forward 12-month P/S basis. The image below shows that BA stock's trailing 12-month return on invested capital (ROIC) not only lags the peer group's average return but also reflects a negative figure. This suggests that the company's investments are not yielding sufficient returns to cover its expenses. Image Source: Zacks Investment Research Boeing remains one of the largest aircraft manufacturers in the world in terms of revenues, orders and deliveries, particularly in the commercial aerospace industry. BA benefited from a significant first-mover advantage, having established itself as one of the pioneers of modern commercial aviation. Over decades, Boeing has built deep relationships with airlines, aircraft lessors, governments and defense customers, creating a broad installed base that generates recurring demand for maintenance, spare parts, pilot training and fleet upgrades. The order book is growing, but slow production, delayed deliveries and ongoing inspections could be turning customers away from Boeing's commercial airplanes, leading to recent order cancellations. Aircraft order cancellations during the six months ended June 30, 2026, totaled $2.78 billion and primarily relate to 737 aircraft. Additionally, the 777X program has suffered repeated postponements and significant cost overruns. Boeing is likely to have benefited from sustained growth in international air travel and robust demand for commercial aircraft, although persistent supply-chain constraints may have partially offset these gains during the quarter. Given its current execution risks, consistent supply-chain issues and negative ROIC, it is advisable to avoid the stock at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report General Dynamics Corporation (GD) : Free Stock Analysis Report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Northrop Grumman Corporation NOC reported third-quarter 2026 adjusted earnings of $7.89 per share, which beat the Zacks Consensus Estimate of $7.22 by 9.3%. The bottom line also increased 2.9% from the year-ago quarter's level of $7.67. NOC's total sales of $11.12 billion in the third quarter beat the Zacks Consensus Estimate of $11.06 billion by 0.6%. The top line also improved 6.7% from $10.42 billion reported in the year-ago quarter. Northrop Grumman Corporation price-consensus-eps-surprise-chart | Northrop Grumman Corporation Quote The company's total backlog was $109.60 billion at the end of the third quarter of 2026, up from $95.68 billion at the end of 2025. During the quarter, Northrop Grumman secured net awards of $16.4 billion, including $4.6 billion for restricted programs, $2.0 billion for Sentinel, $1.4 billion for Virginia-class submarines, $1.3 billion for F-35 and $1.0 billion for E-2. Aeronautics Systems: This segment's sales of $3.58 billion rose 14% year over year, driven by higher sales on the F-35 program, increased B-21 sales and higher B-2 sustainment volume. The unit's operating income increased 23.6% to $377 million compared with $305 million in the third quarter of 2025. Its operating profit margin expanded 80 basis points (bps) to 10.5% from 9.7%. Mission Systems: Sales in this segment increased 2% to $3.16 billion. The improvement was driven by the ramp-up of restricted airborne radar programs and higher volume on marine systems programs, partially offset by lower volume on restricted advanced microelectronics programs. The unit's operating income decreased 2.9% to $500 million compared with $515 million in the prior-year quarter. The operating margin contracted 90 bps to 15.8% from 16.7%, partly due to a favorable $68 million estimate-at-completion adjustment in the restricted advanced microelectronics portfolio in the year-ago quarter. Defense Systems: This segment's sales rose 12% year over year to $2.31 billion. The improvement was driven by the continued ramp-up of the Sentinel program, higher volume on the Guided Multiple Launch Rocket System Extended Range (GMLRS ER) program and increased volume on various tactical solid rocket motor programs. These gains were partially offset by lower volume on certain military ammunition programs. The unit's operating income increased 6.8% year over year to $250 million. However, the operating margin contracted 60 bps to 10.8% from 11.4%, primarily due to changes in contract mix toward more cost-type content. Space Systems: Sales in this segment rose 1.9% to $2.75 billion. The improvement was driven by the ramp-up of programs in the restricted space portfolio, partially offset by $136 million in lower sales on Commercial Resupply Service missions due to launch timing. The segment's operating income increased 4.7% year over year to $312 million. The operating margin expanded 30 bps to 11.3% from 11%, primarily due to changes in contract mix toward more fixed-price content. Northrop Grumman's Operational Update Total operating income during the third quarter increased 2% year over year to $1.19 billion from $1.17 billion in the prior-year quarter. The operating margin rate declined to 11.4% from 11.9%, primarily due to a decrease in the FAS/CAS operating adjustment. Segment operating income increased 5% to $1.44 billion, while the segment operating margin rate was 12.1% compared with 12.3% in the prior-year quarter. Northrop Grumman reported third-quarter 2026 sales of $11.12 billion, up 7% year over year from $10.42 billion. Net earnings increased 2% to $1.12 billion, while earnings per share (EPS) rose 2.9% to $7.89 from $7.67 in the year-ago quarter. Northrop Grumman's cash and cash equivalents as of Sept. 30, 2026, totaled $3.74 billion, down from $4.40 billion as of Dec. 31, 2025. Long-term debt, net of the current portion, amounted to $14.43 billion compared with $15.16 billion as of Dec. 31, 2025. Net cash provided by operating activities totaled $1.37 billion during the first nine months of 2026 compared with $860 million in the year-ago period. Adjusted free cash flow reached $965 million compared with $72 million in the first nine months of 2025. The company expects its revenues to be in the range of $43.75-$44.25 billion, unchanged from its previous guidance. The Zacks Consensus Estimate for sales is pegged at $44.02 billion, above the midpoint of the company's guided range. NOC expects segment operating income in the band of $4.94-$5.04 billion compared with its previous guidance of $4.85-$5.00 billion. The company raised its adjusted earnings guidance to $29.35-$29.75 per share from its previous guidance of $28.60-$29.10. The Zacks Consensus Estimate for earnings is pegged at $28.84 billion, below the company's guided range. Northrop Grumman continues to project adjusted free cash flow in the band of $3.10-$3.50 billion. NOC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Boeing Company BA is set to report third-quarter 2026 earnings on Oct. 27, 2026, before market open. The Zacks Consensus Estimate for BA's loss is pegged at 14 cents per share. The consensus estimate for its sales is pegged at $24.53 billion, indicating year-over-year growth of 5.4%. Lockheed Martin LMT is set to report third-quarter 2026 earnings on Oct. 22, 2026, before market open. The consensus estimate for LMT's earnings is pegged at $7.49 per share. The consensus estimate for its sales is pegged at $20.43 billion, indicating year-over-year growth of 9.8%. General Dynamics Corporation GD is set to report third-quarter 2026 results on Oct. 30, 2026, before the market opens. The Zacks Consensus Estimate for GD's earnings is pegged at $4.14 per share. The consensus estimate for its sales is pegged at $13.71 billion, indicating year-over-year growth of 6.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report General Dynamics Corporation (GD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RTX Corporation's RTX third-quarter 2026 adjusted earnings per share (EPS) of $2.26 beat the Zacks Consensus Estimate of $1.78 by 27%. The bottom line improved 32.9% from the year-ago quarter's level of $1.70. Revenues rose 11.1% year over year to $24.97 billion and beat the consensus mark of $24.01 billion by 4%. Growth was supported by higher commercial aftermarket and defense demand. RTX Corporation price-consensus-eps-surprise-chart | RTX Corporation Quote Organic sales advanced 12% in the third quarter. Commercial original equipment (OE) sales at Collins Aerospace increased 23%, while commercial aftermarket revenues rose 9% and defense sales grew 7%. At Pratt & Whitney, commercial aftermarket sales increased 21%, while military revenues rose 2%. Raytheon's sales increased 14%, driven by higher volumes across naval programs and land and air defense systems. The company secured more than $81 billion in new commercial and defense awards during the third quarter. Its total backlog reached a record $340 billion, comprising $176 billion of commercial orders and $164 billion of defense orders, providing strong visibility into future production requirements. RTX also secured multi-year undefinitized production contracts for the Tomahawk and AMRAAM programs. Total costs and expenses increased 8.8% year over year to $21.79 billion. Cost of sales rose to $19.16 billion from $17.90 billion, while selling, general and administrative expenses increased to $1.92 billion from $1.44 billion. Adjusted segment operating profit advanced 39% to $3.89 billion, with the consolidated adjusted segment operating margin expanding 310 basis points to 15.2%. Reported operating profit rose to $3.34 billion from $2.52 billion, while the reported operating margin improved to 13.4% from 11.2%. Collins Aerospace generated sales of $8.38 billion, up 10% year over year and 12% organically. Commercial OE sales increased 23%, commercial aftermarket revenues rose 9% and defense sales improved 7%. Higher volumes across narrowbody and widebody platforms supported commercial OE growth, while increased demand for modifications, upgrades, provisioning, parts and repair drove aftermarket revenues. Adjusted operating profit increased 50% to $1.79 billion. Pratt & Whitney's sales rose 10% to $9.23 billion. Commercial aftermarket sales increased 21%, primarily driven by higher Geared Turbofan (GTF) engine volumes, while military revenues grew 2%. Commercial OE sales declined 5% due to a large commercial engine mix. Adjusted operating profit advanced 29% to $968 million, supported by higher commercial aftermarket volumes and approximately $160 million in IEEPA cost recovery. However, reported operating profit declined 19% to $608 million, reflecting a $363 million charge related to a customer bankruptcy. Raytheon recorded sales of $8.03 billion, up 14% year over year. Growth reflected higher volumes across naval programs and land and air defense systems, including Patriot, Standard Missile and Tomahawk programs. Adjusted operating profit increased 32% to $1.13 billion, driven by improved net productivity, higher volumes and favorable mix, including Patriot programs. RTX had cash and cash equivalents of $9.17 billion as of Sept. 30, 2026 compared with $7.44 billion as of Dec. 31, 2025. Long-term debt totaled $31.49 billion as of Sept. 30, 2026 compared with $34.29 billion as of Dec. 31, 2025. Operating cash flow totaled $2.87 billion compared with $4.64 billion in the prior-year quarter. Capital expenditures were $749 million, resulting in free cash flow of $2.12 billion versus $4.03 billion a year earlier. The decline in quarterly cash flow reflected a comparison with the stronger prior-year period. RTX raised its 2026 adjusted sales guidance to $97.0-$97.5 billion from $95.0-$96.0 billion. The company now expects organic sales growth of 10-11% compared with its prior projection of 8-9%. Adjusted earnings are projected to be between $7.65 and $7.75 per share, up from $7.10-$7.25. Free cash flow is expected to range from $9.0 billion to $9.2 billion compared with the previous forecast of $8.50-$8.75 billion. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Boeing Company BA is set to report third-quarter 2026 earnings on Oct. 27, 2026, before the market opens. The Zacks Consensus Estimate for BA's loss is pegged at 14 cents per share. The consensus estimate for its sales is pegged at $24.53 billion, indicating year-over-year growth of 5.4%. Lockheed Martin LMT is set to report third-quarter 2026 earnings on Oct. 22, 2026, before market open. The consensus estimate for LMT's earnings is pegged at $7.49 per share. The consensus estimate for its sales is pegged at $20.43 billion, indicating year-over-year growth of 9.8%. General Dynamics Corporation GD is set to report third-quarter 2026 results on Oct. 30, 2026, before the market opens. The Zacks Consensus Estimate for GD's earnings is pegged at $4.14 per share. The consensus estimate for its sales is pegged at $13.71 billion, indicating year-over-year growth of 6.2%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RTX Corporation (RTX) : Free Stock Analysis Report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report General Dynamics Corporation (GD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

General Dynamics (GD) heads into its October 30 earnings release with two storylines in focus. Investors are weighing expectations for higher quarterly EPS and revenue, and they are also paying close attention to its nuclear submarine work under the AUKUS partnership. Recent trading reflects that mix of excitement and caution. General Dynamics' share price has risen 2.1% over the past day and 3.9% across the last week, even though the 30 day move is down 4.4% and the 90 day share price return is down 6.6%. At the same time, a 5.8% one year total shareholder return and 55.3% three year total shareholder return point to stronger momentum over a longer holding period as investors weigh earnings expectations, AUKUS related submarine work, and the upcoming CEO transition announced for 2027. Spot opportunities tied to themes similar to General Dynamics' defense exposure by scanning our curated 32 resilient stocks with low risk scores list, which focuses on companies with resilient balance sheets and steadier risk profiles. General Dynamics has a diversified defense and aerospace engine that investors know well. After a choppy few months and fresh optimism around earnings and AUKUS, the key question is whether that solid franchise still comes at a reasonable price today. Against a last close of $344.23, the most followed valuation story on General Dynamics pegs fair value at about $370.92. This frames the current AUKUS and submarine momentum as only part of a wider thesis on the stock. That's not a moonshot, and it doesn't need to be. The submarines are under contract, the shipyards are getting faster, and the rest of the business keeps growing. If GD keeps costs in check on the new submarine deal, we think the market will eventually value it like the peers it's outperforming. See why 1 investors see General Dynamics as 7% undervalued. Result: Fair Value of $370.92 (UNDERVALUED) Still, the fixed price submarine contract and any stumble in the General Dynamics CEO transition could quickly challenge this 7% undervalued story. Find out about the key risks to this General Dynamics narrative. If the mixed sentiment around General Dynamics leaves you split, move fast and check the underlying data yourself so your view does not get anchored on one narrative. To understand why some investors are leaning optimistic, take a closer look at the 5 key rewards. Do not stop at General Dynamics. Turn today's research into a broader watchlist and give yourself more than one way to win over the long haul. - Target steadier journeys by scanning a screener focused on resilient balance sheets and lower risk profiles through the list of solid balance sheet and fundamentals (25 results). - Hunt for mispriced quality by reviewing a curated set of potential bargains via the 33 high quality undervalued stocks. - Stack potential income on top of price returns by checking companies with stronger yield profiles using the 8 dividend fortresses. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

RTX Corporation RTX is slated to report third-quarter 2026 results on Oct. 20, 2026, before market open. The Zacks Consensus Estimate for revenues is pegged at $24.01 billion, indicating an improvement of 6.8% from the year-ago quarter's reported figure. The consensus mark for the bottom line is pegged at $1.78 per share, implying growth of 4.7% from the prior-year quarter's reported figure. Image Source: Zacks Investment Research RTX's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 14.21%. Image Source: Zacks Investment Research Our proven model predicts an earnings beat for RTX this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter. RTX has an Earnings ESP of +0.70% and a Zacks Rank of 2 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Some stocks in the same industry that also have the combination of factors indicating an earnings beat are General Dynamics GD and Lockheed Martin LMT. GD and LMT have an Earnings ESP of +2.36% and +0.27%, respectively. Both General Dynamics and Lockheed Martin carry a Zacks Rank of 3 at present. Rising flight hours, driven by continued growth in domestic and international air travel, are sustaining strong demand for commercial aircraft aftermarket services. This trend is likely to have supported RTX's commercial aftermarket sales in the third quarter of 2026. Meanwhile, continued aircraft production ramp-ups across narrowbody and widebody platforms are expected to have supported demand for commercial original equipment manufacturer (OEM) products. Higher GTF engine installations and strong maintenance, repair and overhaul (MRO) activity are also likely to have supported Pratt & Whitney's performance. Against this backdrop, continued demand for GTF engines and aftermarket services is expected to have contributed to revenue growth across Pratt & Whitney and Collins Aerospace. For the third quarter, Pratt & Whitney is expected to have faced particularly challenging comparisons because the prior-year quarter benefited from the timing of the F135 engine production contract award and related sales. A shift in large commercial engine sales toward installed engines and away from spare parts is also likely to have weighed on revenues, even as aftermarket maintenance demand remains strong. In addition, higher demand for RTX's integrated air and missile defense systems, supported by rising global defense spending and strong international orders, is expected to have boosted revenues at the Raytheon segment. Continued production growth across Patriot, Standard Missile and AMRAAM programs is also likely to have contributed to the segment's top-line growth. RTX's shares have exhibited an upward trend, gaining a notable percentage over the past year. Specifically, the stock soared 19.1% in the time frame, outperforming the Zacks aerospace-defense industry's decline of 17.9%. It has also outpaced the broader Zacks Aerospace sector's decline of 16.1% as well as the S&P 500's gain of 17.4%. Image Source: Zacks Investment Research A similar stellar performance can be seen in the share price return of other industry players like General Dynamics and Lockheed Martin, which have witnessed a surge of 1.8% and 7.6%, respectively, in the past year. In terms of valuation, RTX's forward 12-month price-to-earnings (P/E) is 24.44X, a discount to its industry's average of 27.36X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared with its industry's P/E ratio. Image Source: Zacks Investment Research However, its industry peers are currently trading at a discount compared with RTX. While the forward 12-month price/earnings multiple for General Dynamics is 18.45X, the same for Lockheed Martin is 16.40X. RTX is well-positioned to benefit from long-term growth in both commercial aerospace and defense markets. The recovery in global air travel and strong defense spending from the United States and its allies should support steady revenue growth and provide good visibility through a strong order backlog. Its diversified business and solid free cash flow also help it invest in growth while returning value to shareholders. However, persistent supply-chain constraints remain a near-term headwind, as they could continue to affect production schedules and delay revenue recognition despite strong underlying demand. RTX looks well-positioned ahead of its third-quarter earnings, backed by healthy demand across its commercial aerospace and defense businesses, a record backlog and strong cash flow generation. Resilient air travel, increased defense spending and continued order growth are expected to support its long-term business prospects. Given its recent share price performance and attractive valuation, investors may consider adding RTX stock to their portfolios at current levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RTX Corporation (RTX) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report General Dynamics Corporation (GD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

As the Q2 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the defense contractors industry, including General Dynamics (NYSE:GD) and its peers. Defense contractors typically require technical expertise and government clearance. Companies in this sector can also enjoy long-term contracts with government bodies, leading to more predictable revenues. Combined, these factors create high barriers to entry and can lead to limited competition. Lately, geopolitical tensions–whether it be Russia's invasion of Ukraine or China's aggression towards Taiwan–highlight the need for defense spending. On the other hand, demand for these products can ebb and flow with defense budgets and even who is president, as different administrations can have vastly different ideas of how to allocate federal funds. The 14 defense contractors stocks we track reported a very strong Q2. As a group, revenues beat analysts' consensus estimates by 4% while next quarter's revenue guidance was 1.1% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.2% since the latest earnings results. Creator of the famous M1 Abrahms tank, General Dynamics (NYSE:GD) develops aerospace, marine systems, combat systems, and information technology products. General Dynamics reported revenues of $14.09 billion, up 8.1% year on year. This print exceeded analysts' expectations by 4%. Overall, it was an exceptional quarter for the company with a beat of analysts' EPS estimates. Investor expectations, however, were likely higher than Wall Street's published projections, leaving some wishing for even better results (analysts' consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 15.4% since reporting and currently trades at $332.61. Is now the time to buy General Dynamics? Access our full analysis of the earnings results here, it's free. Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE:HII) develops marine vessels and their mission systems and maintenance services. Huntington Ingalls reported revenues of $3.42 billion, up 10.9% year on year, outperforming analysts' expectations by 8.2%. The business had an incredible quarter with a beat of analysts' EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.6% since reporting. It currently trades at $264.78. Is now the time to buy Huntington Ingalls? Access our full analysis of the earnings results here, it's free. Delivering aerospace technology during the Cold War-era, Parsons (NYSE:PSN) offers engineering, construction, and cybersecurity solutions for the infrastructure and defense sectors. Parsons reported revenues of $1.58 billion, flat year on year, falling short of analysts' expectations by 1.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts' expectations significantly and full-year EBITDA guidance missing analysts' expectations significantly. Parsons delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 27.3% since the results and currently trades at $45.07. Read our full analysis of Parsons's results here. Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications. Kratos reported revenues of $458.8 million, up 30.5% year on year. This number surpassed analysts' expectations by 11.6%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts' organic revenue estimates and a beat of analysts' EPS estimates. Kratos achieved the biggest analyst estimate beat and fastest revenue growth among its peers. The stock is down 18% since reporting and currently trades at $42.54. Read our full, actionable report on Kratos here, it's free. Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts. CACI reported revenues of $2.71 billion, up 17.6% year on year. This result topped analysts' expectations by 0.7%. It was an exceptional quarter as it also produced a solid beat of analysts' EBITDA estimates and full-year EPS guidance exceeding analysts' expectations. The stock is up 17.8% since reporting and currently trades at $610.03. Read our full, actionable report on CACI here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

General Dynamics Corporation (GD), headquartered in Reston, Virginia, operates as a global aerospace and defense company. Valued at $89.3 billion by market cap, the company offers a broad portfolio of products and services in business aviation, combat vehicles, weapons systems, munitions, shipbuilding design and construction, information systems, and technologies. The defense giant is expected to announce its fiscal third-quarter earnings for 2026 in the near future. Ahead of the event, analysts expect General Dynamics to report a profit of $4.14 per share on a diluted basis, up 6.7% from $3.88 per share in the year-ago quarter. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports. - Why It's Time to Load Up on Broadcom Stock Before It Touches $523 - NVO vs. LLY: Novo's CEO Says Confidence Is Gone. Lilly Is Winning 7 in 10 New Seniors. - ZS Stock Alert: What to Know as Zscaler Unveils Partnership With IBM - Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For the full year, analysts expect General Dynamics to report EPS of $16.99, up 9.9% from $15.46 in fiscal 2025. Its EPS is expected to rise 9.5% year over year to $18.61 in fiscal 2027. GD stock has underperformed the S&P 500 Index's ($SPX) 15.8% gains over the past 52 weeks, with shares down 3.5% during this period. Similarly, it underperformed the State Street Industrial Select Sector SPDR ETF's (XLI) 10.2% gains over the same time frame. GD has underperformed primarily due to valuation multiple compression and investor skepticism regarding profit conversion, despite achieving record total backlogs exceeding $136 billion. While top-line revenue expanded through strong order flow, particularly in its Aerospace (Gulfstream) and Marine Systems divisions, the stock faced headwinds after earnings updates where full-year EPS guidance implied limited margin acceleration in the second half of the year. Furthermore, sentiment was weighed down by supply-chain bottlenecks slowing production delivery timelines, localized operational challenges in defense manufacturing units, and significant executive insider share sales following earnings releases, prompting investors to re-evaluate the stock's elevated valuation relative to pure-play defense peers. Analysts' consensus opinion on GD stock is reasonably bullish, with a "Moderate Buy" rating overall. Out of 24 analysts covering the stock, 13 advise a "Strong Buy" rating, 10 give a "Hold," and one recommends a "Strong Sell." GD's average analyst price target is $418.50, indicating a potential upside of 26.2% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com