Prime Highlights
- GM’s adjusted EPS of $3.57 topped estimates, with revenue reaching $48.03 billion.
- GM raised full-year adjusted EBIT guidance to $14 billion-$16 billion, up from prior guidance.
Key Facts
- General Motors is a major US automaker led by CEO and Chair Mary Barra.
- GM lowered its net income guidance to between $8.4 billion and $9.8 billion for the year.
Background
General Motors raised several key 2026 earnings forecasts this week after beating Wall Street’s second-quarter expectations, as the automaker’s North American operations continued to drive results.
The company reported adjusted earnings per share of $3.57, ahead of the $3.20 expected, while revenue came in at $48.03 billion, compared with the $47.01 billion analysts had forecast, according to estimates compiled by LSEG.
The Detroit automaker raised its full-year adjusted earnings before interest and taxes guidance to between $14 billion and $16 billion, translating to adjusted earnings per share of $12 to $14, up from previous guidance of $13.5 billion to $15.5 billion, or $11.50 to $13.50 per share. GM also 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 previously.
However, the company lowered its expectations for net income attributable to stockholders to between $8.4 billion and $9.8 billion, down from previously reduced guidance of $9.9 billion to $11.4 billion.
GM’s North American operations led the results, supported by expanding digital services and reduced losses on all-electric vehicles. CEO and Chair Mary Barra said in a letter to shareholders that the region’s adjusted EBIT margin of 8.6% rose 2.5 points from a year earlier, with the company continuing to lower warranty costs, reduce EV losses and increase operating efficiency. She added that GM International, including its China joint ventures, was profitable during the period.
In the same quarter last year, GM reported revenue of $47.12 billion, net income attributable to stockholders of $1.9 billion, and adjusted earnings before interest and taxes of $3.04 billion.