General Motors (GM) Q2 2026 earnings

DETROIT — GM Several key 2026 earnings forecasts were raised on Tuesday after beating Wall Street expectations for the second quarter as the company’s North American operations continued to drive its results.

The Detroit automaker attributed the change in its guidance to stable vehicle transaction prices, lower warranty costs and narrowing losses for all-electric vehicles as it concluded a multi-billion-dollar divestment in electric vehicles.

“These results are very consistent with what we’ve been doing over the last several years,” Paul Jacobson, GM’s chief financial officer, said Tuesday on CNBC’s “Squawk Box.” “Our first-half earnings per share are 25% higher than the first half at any time in our history.”

“GM’s momentum is clear,” Jacobson said, while referring to the company’s stock as a “bargain” even after increasing more than 40% over the past year. He described the company’s consumer demand as “resilient.”

GM stock closed Tuesday at $79.52 per share, up 4.9%.

Here’s how GM performed in the first quarter, compared to average estimates compiled by LSEG:

• EPS: $3.57 was revised versus $3.20 expected
• profit: $48.03 billion versus $47.01 billion expected

The raised guidance includes full-year adjusted EBIT of $14 billion to $16 billion, or $12 to $14 per adjusted share, up from previous guidance of $13.5 billion to $15.5 billion, or $11.50 to $13.50 per adjusted share previously. It also raised its auto adjusted free cash flow forecast to $9.5 billion to $11.5 billion, up from $9 billion to $11 billion.

However, the automaker lowered its forecast for net income attributable to shareholders to between $8.4 billion and $9.8 billion, down from previously lowered guidance of between $9.9 billion and $11.4 billion.

This is the second straight quarter in which GM reduced its net income attributable to shareholder guidance while raising other expectations. In April, GM changed its guidance to reflect a $500 million tariff reduction.

The company’s North American operations led GM’s results, which also include expanding its digital services revenue and improving its electric vehicle losses by $1 billion to $1.5 billion this year compared to 2025.

“Adjusted EBIT margin of 8.6% in North America increased 2.5 points from last year, and we continue to reduce our warranty costs, reduce EV losses, and increase operating efficiencies,” Mary Barra, CEO and Chairman of GM, said in a letter to shareholders. “In addition, GM International, including our joint ventures in China, has been profitable.”

Barra also noted stable vehicle prices and that a “very attractive lineup” of pickup trucks and SUVs contributed to its results. The automaker said the average vehicle transaction price was $52,000 during the quarter as it remains disciplined on incentives.

The company said Tuesday that it has “substantially completed” the material charges involved in its withdrawal from all-electric vehicles, which included recording $10.9 billion in EV-related charges since the second half of last year.

GM said Tuesday it paid $4.5 billion of an expected $7.2 billion cash charge related to the recall of its electric vehicles during the second quarter.

The company’s second-quarter results included net income attributable to shareholders of $1.3 billion, down 31.1% compared to the prior year, while adjusted earnings increased nearly 30% to more than $3.9 billion, or an adjusted profit margin of 8.2%. Its revenues increased by 1.9% from the previous year.

GM’s results for the second quarter of 2025 included revenue of $47.12 billion, net income attributable to shareholders of $1.9 billion, and adjusted earnings before interest and taxes of $3.04 billion.