Citigroup Lowers General Dynamics (GD) Target but Sees Opportunity after Recent Pullback

Vardah Gill

Wed, May 20, 2026 at 7:46 AM EDT 2 min read

General Dynamics Corporation (NYSE:GD) is included among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds.

On May 18, Citigroup lowered its price recommendation on General Dynamics Corporation (NYSE:GD) to $364 from $380. It reiterated a Neutral rating on the shares. The firm updated its models across the aerospace and defense sector and said it does not expect an “immediate V-shaped rally” unless there is a resolution to the conflict in the Middle East. At the same time, Citi said the recent selloffs have created buying opportunities. The firm expects aerospace stocks to recover first, followed by defense companies.

During the Q1 2026 earnings call, President Danny Deep said the company reported earnings of $4.10 per diluted share on revenue of $13.5 billion. Senior Vice President and CFO Kimberly Kuryea stated that the company secured more than $26 billion in orders during the quarter. That resulted in an overall book-to-bill ratio of 2:1 and pushed total backlog to $131 billion.

Deep said the Aerospace segment delivered a strong performance during the quarter. He noted that the company delivered 38 aircraft, which was fully in line with expectations. He also said the aircraft generated very strong gross margins and performed better than the G650 models they replaced.

Speaking about Marine Systems, Deep said quarterly growth of 21% was mainly driven by the Columbia-class and Virginia-class submarine programs. He also noted that GDIT continued seeing strong demand for its AI and cybersecurity capabilities. Deep added that the company updated its 2026 guidance and now expects EPS to range between $16.45 and $16.55.

General Dynamics Corporation (NYSE:GD) is a global aerospace and defense company. It provides products and services across business aviation, ship construction and repair, land combat vehicles, weapons systems and munitions, as well as technology products and services.

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