GM Beats Q2 Expectations, Raises 2026 Outlook Amid EV Pullback

On July 21, General Motors announced second-quarter adjusted earnings per share of $3.57, surpassing analyst expectations of $3.20. Revenue reached $48.03 billion, above the $47.01 billion forecast. Core profit rose 30 % year-over-year, and earnings before interest and tax (EBIT) increased to $3.9 billion from roughly $3 billion a year earlier. The automaker lifted its full-year adjusted EBIT guidance to $14-$16 billion (previously $13.5-$15.5 billion) and raised its adjusted automotive free-cash-flow target to $9.5-$11.5 billion.

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GM also revised its 2026 earnings outlook, projecting adjusted EPS of $12-$14, up from $11.50-$13.50 previously. Net income attributable to shareholders was lowered to $8.4-$9.8 billion. The company said EV-related losses would shrink by $1-$1.5 billion this year, after recording $10.9 billion in EV charges since Q2 2025, including $2.3 billion in the current quarter. Completed cash charges related to the EV pullback were highlighted.

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“These results are very consistent with what we've been doing for the last several years,” — GM CFO Paul Jacobson

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“Our first-half earnings per share is 25% higher than the first half at any time in our history.” — Paul Jacobson, GM CFO

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GM attributed the upbeat performance to “resilient” U.S. consumer demand for higher-priced trucks and SUVs, with the average U.S. vehicle selling for about $52,000. The firm is relocating production of the Chevrolet Equinox, Blazer, and certain trucks to U.S. plants, a move expected to add $1-$1.5 billion in costs but offset tariff pressures. President Donald Trump’s regulatory easing on fuel-efficiency standards is projected to benefit earnings by $500-$750 million.

Reuters

Executives expressed confidence that the momentum can extend into 2027, citing growth in the defense segment—projected near $700 million in revenue this year—and continued strength in North America. Analysts noted GM’s ability to execute despite global inflationary pressures, positioning the company for sustained profitability.

Reuters