General Dynamics reported third-quarter 2026 revenue growth of 12.9% and earnings per share (EPS) growth of 15.7%, driven by faster shipyard output and wider margins in Aerospace. Its backlog hit a record $220 billion, double the prior year's level, mainly on large submarine awards at Electric Boat. The company raised full-year EPS guidance for the third time, to $17.20–$17.30. Chief executive officer Phebe Novakovic will retire after 14 years and become executive chair. Danny Deep will take over as chief executive officer. General Dynamics aims to deliver 200 aircraft a year by 2030. It expects a delivery gap in mid-2027 as the G280 phases out before the G300 is certified. Middle East customers remain slow to place aircraft orders.

General Dynamics beat Wall Street expectations in the third quarter, reporting net income of $1.23 billion, or $4.49 per share. Analysts surveyed by Zacks Investment Research had expected earnings of $4.14 per share. The Reston, Virginia-based defence contractor posted revenue of $14.57 billion. Analysts had forecast $13.69 billion.

A Simply Wall St screen of US large-cap value and dividend-paying stocks names three companies that could gain from the Federal Reserve holding interest rates higher for longer: General Dynamics, Pentair, and Xylem. General Dynamics, a defence contractor with a market cap of $96.5 billion, earns $17.9 billion from Marine Systems, $13.8 billion each from Aerospace and Technologies, and $9.4 billion from Combat Systems. Its shipbuilding revenue grew about 10%, with a better profit margin. Pentair, valued at $8.8 billion, sells water filtration and pool equipment. It cut its 2026 guidance and now expects revenue to fall 4% to 7% from $4.2 billion in 2025. Xylem, valued at $25.3 billion, makes water infrastructure equipment. Ageing infrastructure and water scarcity support long-term demand. The screen found 26 more stocks.