General Dynamics' next CEO prioritizes consistency for the tech shops

Consistency is the theme that General Dynamics’ next chief executive is highlighting with respect to its technology-intensive segment as he prepares to step into the leadership role on Jan. 1.

Danny Deep has been overseeing operations across the corporation since his appointment to the executive vice president ranks in mid-2025 and subsequent promotion to president at the start of this year. Deep is succeeding CEO Phebe Novakovic as she is transitioning to executive chairman of the board of directors.

During GD’s third quarter earnings call with investors Friday, Deep charted out the paths forward for both the IT services and mission systems business units that comprise the Technologies segment.

Deep’s pending promotion to CEO coincides with the leadership transition at GDIT, which Amy Johnson will begin leading as president on Nov. 3 after 27 years at Mission Systems and other GD businesses.

Mission Systems is where a bulk of the Technologies segment’s product portfolio resides. Deep indicated the strategy for GDMS will stay centered around building electronic systems that can be integrated into other platforms.

“We'll continue to see them invest and grow in the areas that they're focused on,” Deep said. “Think of subsea warfare, space, intelligence and cyber.”

Like other federal systems integrators, GDIT has had to navigate a nearly two-year period of choppy waters across the market since the second Trump administration took office and implemented cost scrutiny initiatives on contracts.

The now-shuttered Department of Government Efficiency pushed for terminations and large scope reductions on tech and professional services contracts across the board, especially at civilian agencies.

Deep said adjudications, final solicitations and other procurement activities in the tech services space have slowed down significantly as GDIT has grown its portfolio.

“They've done that because they've invested in mission-ready technologies and been able to grow on contract work with the use of OTAs [Other Transaction Authority agreements] and a bit of a pivot towards more fixed-price contracting,” Deep said.

Third quarter Technologies revenue of $3.7 billion was 11% higher than the prior year period, while operating earnings of $346 million showed a 6% year-over-year increase.

GD is holding to its full-year guidance of $14.1 billion in revenue for Technologies on a 9.4% operating margin, compared to 2025’s results of $13.5 billion in sales on a 9.5% margin. The corporation does not provide business unit-level guidance.

But for context: GDIT reported $9 billion in revenue for 2025, up from $8.7 billion for 2024 and $8.4 billion for 2023.

GDMS’ sales hit $4.4 billion in 2025, $4.3 billion in 2024 and $4.4 billion for 2023.