General Motors Raises Earnings Forecasts Amid Strong Q2 Performance
Detroit, MI — General Motors (GM) has revised its earnings forecasts for 2026 following a robust performance in the second quarter, surpassing Wall Street expectations. The Detroit-based automaker’s North American operations have been pivotal in driving these results, showcasing a resilient consumer demand.
During a recent appearance on CNBC’s “Squawk Box,” GM Chief Financial Officer Paul Jacobson highlighted the company’s consistent vehicle transaction prices, reduced warranty costs, and a decrease in all-electric vehicle losses as key factors influencing the updated guidance. “These results align with our performance trends over the past several years,” Jacobson stated, noting that the company’s earnings per share for the first half of the year is 25% higher than any previous period.
Jacobson expressed optimism about GM’s market position, describing the company’s stock, currently valued at approximately $75 per share, as a “bargain.” This marks a 40% increase compared to the same period last year, reflecting strong consumer interest.
Q2 Financial Highlights
In the second quarter, GM reported the following financial metrics, compared to average analyst estimates compiled by LSEG:
- Earnings per Share (EPS): $3.57 (adjusted) versus an expected $3.20
- Revenue: $48.03 billion compared to an anticipated $47.01 billion
The revised guidance for 2026 includes projected adjusted earnings before interest and taxes (EBIT) of $14 billion to $16 billion, up from previous estimates of $13.5 billion to $15.5 billion. Adjusted EPS is now expected to range between $12 and $14, an increase from prior forecasts. Additionally, GM has raised its expectations for adjusted automotive free cash flow to between $9.5 billion and $11.5 billion, up from $9 billion to $11 billion.
However, the company has adjusted its net income attributable to stockholders downward, now predicting a range of $8.4 billion to $9.8 billion, compared to earlier expectations of $9.9 billion to $11.4 billion. This marks the second consecutive quarter in which GM has lowered its net income guidance while increasing other financial forecasts.
Operational Insights
GM’s North American operations have been particularly strong, contributing significantly to the company’s overall performance. The automaker reported a 20% increase in revenue from digital services and improved its electric vehicle (EV) losses by $1 billion to $1.5 billion compared to the previous year.
“Our EBIT-adjusted margin in North America increased to 8.6%, up 2.5 percentage points from last year,” stated GM CEO Mary Barra in a letter to shareholders. She emphasized the importance of consistent vehicle pricing and a compelling lineup of pickup trucks and SUVs, noting that the average vehicle transaction price reached $52,000 during the quarter.
Barra also reported that GM has “substantially” completed its multibillion-dollar pullback from all-electric vehicles, which has involved $10.9 billion in EV-related charges since the latter half of the previous year.
Looking Ahead
As of the end of the second quarter, GM has incurred $4.5 billion of an anticipated $7.2 billion in cash charges related to its EV strategy. The company reported net income attributable to stockholders of $1.3 billion for Q2, a decline of 31.1% from the previous year. However, adjusted earnings rose approximately 30% to over $3.9 billion, reflecting an 8.2% adjusted profit margin. Revenue increased by 1.9% year-over-year.
With these developments, GM continues to navigate the evolving automotive landscape, focusing on efficiency and profitability as it adapts to changing market conditions.
