GM stock draws focus after Q2 beat and raised outlook
General Motors beat Wall Street's second-quarter estimates and raised full-year profit guidance, lifting investor focus on the stock after resilient truck and SUV pricing. Adjusted EPS hit $3.57 versus $3.20 expected, while the company lifted 2026 adjusted EBIT to $14–$16 billion on strong North American margins.
Key Takeaways
- GM posted adjusted EPS of $3.57 and revenue of $48.03 billion, beating Wall Street estimates of $3.20 and $47.01 billion.
- Full-year adjusted EBIT guidance rose to $14–$16 billion, with adjusted EPS lifted to $12–$14 and free cash flow to $9.5–$11.5 billion.
- Net income attributable to stockholders fell 31.1% to $1.3 billion, and GM cut that full-year target to $8.4–$9.8 billion amid EV-related charges.
- North America delivered an 8.6% adjusted EBIT margin, with average vehicle transaction prices holding at $52,000.
- CFO Paul Jacobson called the stock a "bargain" near $75 a share, up more than 40% from a year earlier.
What did GM report for Q2 2026 earnings?
General Motors topped second-quarter expectations on Tuesday. Revenue reached $48.03 billion against a $47.01 billion consensus, according to CNBC and LSEG estimates.
Company-wide adjusted EBIT rose about 30% to more than $3.9 billion, or an 8.2% adjusted profit margin. Net income attributable to stockholders was $1.3 billion, down 31.1% from a year earlier as EV pullback charges continued to weigh on GAAP results.
North American operations led the beat. That segment posted adjusted EBIT of $3.45 billion, up 42.7% year over year, with an 8.6% adjusted margin—2.5 points higher than a year ago.
Why did GM raise guidance—and what changed for the stock story?
GM raised several 2026 forecasts for a second time this year. Adjusted EBIT is now seen at $14 billion to $16 billion, up from $13.5 billion to $15.5 billion. Adjusted EPS guidance moved to $12 to $14 from $11.50 to $13.50. Adjusted automotive free cash flow was lifted to $9.5 billion to $11.5 billion.
Executives tied the outlook to consistent vehicle transaction prices, lower warranty costs, and narrowing all-electric vehicle losses. Average transaction prices held at $52,000 as GM stayed disciplined on incentives. CEO Mary Barra cited a "very attractive lineup" of pickup trucks and SUVs, plus profitable GM International results including China joint ventures.
For investors tracking Net Worth & Wealth headlines, CFO Paul Jacobson told CNBC the company's first-half earnings per share were 25% higher than any first half in GM history and described consumer demand as "resilient." He referred to the stock near $75 as a "bargain."
How are EV charges and dividends shaping GM's outlook?
GM said it has "substantially" completed material charges tied to its EV pullback, totaling $10.9 billion since the second half of last year. Of an expected $7.2 billion in related cash charges, $4.5 billion had been paid through the second quarter. EV losses are on track to improve by $1 billion to $1.5 billion versus 2025, and digital services revenue rose 20%.
Offsetting the raised profit metrics, GM lowered full-year net income attributable to stockholders guidance to $8.4 billion to $9.8 billion from $9.9 billion to $11.4 billion—the second straight quarter it cut that GAAP target while lifting other forecasts. The company also declared a $0.18 quarterly cash dividend on common stock, payable September 17 to shareholders of record as of September 4.