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GD vs TDG
General Dynamics (GD) vs TransDigm Group (TDG) Earnings Recap: Recent Results and Growth Momentum
Key Takeaways
- General Dynamics reported Q4 2025 EPS of $4.17, beating estimates by $0.06, with revenue of $14.4 billion up 7.8% year-over-year.
- TransDigm posted Q1 fiscal 2026 adjusted EPS of $8.23, surpassing expectations by $0.24, and net sales of $2.29 billion, up 13.9%.
- GD ended 2025 with a record $118 billion backlog, signaling strong defense demand visibility.
- TDG raised fiscal 2026 guidance, projecting robust revenue growth driven by commercial OEM and aftermarket channels.
- Both firms demonstrated earnings beats, but TDG trades at a premium P/E of ~38x versus GD's ~22x.
- Diversified aerospace and defense exposure positions both for sustained growth amid global tensions and aviation recovery.
Earnings Context and Why This Comparison Matters
Recent earnings from GD and TDG highlight resilience in the aerospace and defense sector. General Dynamics, a leader in defense systems including combat vehicles, submarines, and IT services, contrasts with TransDigm Group, a specialized supplier of highly engineered aircraft components for commercial and military platforms. This comparison matters as both benefit from elevated defense budgets and commercial aviation rebound, yet differ in scale, margins, and market focus—GD offers stability with its vast backlog, while TDG delivers high-margin growth through proprietary parts.
General Dynamics Focus
General Dynamics released Q4 and full-year 2025 results on January 28, 2026. Diluted EPS reached $4.17 on $14.4 billion in revenue, exceeding consensus estimates of $4.11 EPS and $13.8 billion sales. Net earnings hit $1.1 billion for the quarter, with full-year figures at $15.45 EPS, $52.6 billion revenue, and $4.2 billion net income—up 13.4%, 10.1%, and 11.3% from 2024, respectively. All segments grew, fueled by marine systems and business jets. The company reported a $118 billion backlog and $179 billion total estimated contract value, up 24% year-over-year, with a 1.5x book-to-bill ratio underscoring multi-year demand.
TransDigm Group Context
TransDigm reported fiscal Q1 2026 results on February 3, 2026, with net sales of $2.285 billion, up 13.9% from the prior year and driven by 7.4% organic growth. Adjusted EPS climbed 5% to $8.23, beating forecasts, while EBITDA as defined rose 12.8% to $1.197 billion at a 52.4% margin. Commercial OEM revenue surged double-digits on higher build rates, with aftermarket and defense also advancing in high single-digits. CEO Mike Lisman noted strong bookings across channels. Fiscal 2026 guidance was raised, targeting ~13% revenue growth to $9.94 billion midpoint and adjusted EPS of $38.38. TTM revenue stands at $9.11 billion, with a market cap of ~$66 billion.
Head-to-Head Earnings and Market Comparison
Both stocks beat earnings estimates, with GD's Q4 surprise on defense-driven revenue and TDG's Q1 on aerospace aftermarket strength. GD's scale ($52.6B TTM revenue, $93B market cap, 22x P/E) provides stability via its $118B backlog, low beta (~0.4), and 1.76% dividend yield. TDG (~$9B TTM revenue, $66B market cap, 38x P/E) boasts superior margins (52% EBITDA) and growth (14% sales increase), but higher leverage. Risks for GD include program delays; for TDG, acquisition dilution and OEM cyclicality. Sentiment favors both amid geopolitical tensions boosting defense and jet production recovery.
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Tickeron AI Verdict
Tickeron AI favors TDG with 65% probability over the next 12 months, citing superior earnings growth, margin expansion, and commercial aviation tailwinds despite the premium valuation. GD's stability suits conservative portfolios, but TDG's trend strength edges it out.
Disclaimer
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To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is GD is a Hold and TDG is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
GD’s FA Score shows that 2 FA rating(s) are green whileTDG’s FA Score has 2 green FA rating(s).
- GD’s FA Score: 2 green, 3 red.
- TDG’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
GD’s TA Score shows that 3 TA indicator(s) are bullish while TDG’s TA Score has 4 bullish TA indicator(s).
- GD’s TA Score: 3 bullish, 5 bearish.
- TDG’s TA Score: 4 bullish, 5 bearish.
Price Growth
GD (@Aerospace & Defense) experienced а +0.34% price change this week, while TDG (@Aerospace & Defense) price change was +4.86% for the same time period.
The average weekly price growth across all stocks in the @Aerospace & Defense industry was +4.81%. For the same industry, the average monthly price growth was +11.73%, and the average quarterly price growth was +29.52%.
Reported Earning Dates
GD is expected to report earnings on Apr 29, 2026.
TDG is expected to report earnings on May 12, 2026.
Industries' Descriptions
@Aerospace & Defense (+4.81% weekly)Aerospace & Defense is one of largest industries in the U.S., mainly comprising the following areas: commercial airliners, military aircraft, missiles, space, and general aviation. Focused heavily on research & development, it is also one of the fastest growing industries. Military aircraft has the largest market share in the industry’s sales, followed by space systems, civil aircraft, and missiles. Aerospace exports, directly and indirectly, support more jobs than the export of any other commodity, according to a study by the U.S. Department of Commerce. Boeing Company, Lockheed Martin Corporation and General Electric Company are some of the most prominent players in this space.
| GD | TDG | GD / TDG | |
| Capitalization | 91.1B | 71.5B | 127% |
| EBITDA | 6.43B | 4.63B | 139% |
| Gain YTD | 0.764 | -4.810 | -16% |
| P/E Ratio | 21.77 | 40.73 | 53% |
| Revenue | 52.6B | 9.11B | 577% |
| Total Cash | N/A | 2.53B | - |
| Total Debt | 9.79B | 30B | 33% |
GD | TDG | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 61 | 7 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 15 Undervalued | 71 Overvalued | |
PROFIT vs RISK RATING 1..100 | 16 | 25 | |
SMR RATING 1..100 | 48 | 16 | |
PRICE GROWTH RATING 1..100 | 58 | 60 | |
P/E GROWTH RATING 1..100 | 54 | 77 | |
SEASONALITY SCORE 1..100 | 65 | 37 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
GD's Valuation (15) in the Aerospace And Defense industry is somewhat better than the same rating for TDG (71). This means that GD’s stock grew somewhat faster than TDG’s over the last 12 months.
GD's Profit vs Risk Rating (16) in the Aerospace And Defense industry is in the same range as TDG (25). This means that GD’s stock grew similarly to TDG’s over the last 12 months.
TDG's SMR Rating (16) in the Aerospace And Defense industry is in the same range as GD (48). This means that TDG’s stock grew similarly to GD’s over the last 12 months.
GD's Price Growth Rating (58) in the Aerospace And Defense industry is in the same range as TDG (60). This means that GD’s stock grew similarly to TDG’s over the last 12 months.
GD's P/E Growth Rating (54) in the Aerospace And Defense industry is in the same range as TDG (77). This means that GD’s stock grew similarly to TDG’s over the last 12 months.
| GD | TDG | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 52% |
| Stochastic ODDS (%) | 2 days ago 61% | 2 days ago 51% |
| Momentum ODDS (%) | 2 days ago 35% | 2 days ago 68% |
| MACD ODDS (%) | 2 days ago 35% | 2 days ago 67% |
| TrendWeek ODDS (%) | 2 days ago 45% | 2 days ago 63% |
| TrendMonth ODDS (%) | 2 days ago 44% | 2 days ago 63% |
| Advances ODDS (%) | 18 days ago 44% | 5 days ago 65% |
| Declines ODDS (%) | 3 days ago 33% | 3 days ago 51% |
| BollingerBands ODDS (%) | 2 days ago 63% | 2 days ago 49% |
| Aroon ODDS (%) | 2 days ago 26% | 2 days ago 61% |
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