GD large-scale Navy contract win

What happened: General Dynamics (GD) secured a $15.4 billion Navy contract for nuclear submarine construction, with GD receiving 78% of the total $126 billion project. GD's shares rose after it beat quarterly estimates, driven by a 21% increase in Marine Systems revenue and a 10.3% overall revenue increase. Additionally, Velo3D (VELO) and Rocket Lab (RKLB) won defense contracts worth $9.8 million and $190 million, respectively.

Market impact: Defense stocks gained, with GD's shares up nearly 5% on strong earnings. The Navy contract and Trump's proposed $1.5 trillion defense budget boost GD's outlook. Velo3D and Rocket Lab saw increased demand for their 3D printing and launch services, respectively, signaling growth in these niche defense sectors.

What to watch next: GD's Q2 2026 earnings on July 28, as investors await further details on the Navy contract and potential revenue growth. Additionally, Velo3D's and Rocket Lab's progress on their respective defense contracts will be closely monitored, with updates expected in their upcoming earnings calls.