GM Accelerates Past Q2 Expectations, Boosts 2026 Outlook on “Resilient” Consumer Demand and Strategic Pricing

DETROIT – General Motors (GM) has revved up its performance, announcing on Tuesday that it not only surpassed Wall Street's second-quarter earnings expectations but also significantly increased its key 2026 financial forecasts. This impressive showing is largely powered by the consistent strength of its North American operations.

The automotive giant attributed its optimistic guidance revision to several key factors: unwavering vehicle transaction prices, effectively managed warranty costs, and a notable reduction in losses from its all-electric vehicle (EV) segment, following a multi-billion-dollar strategic pullback in its EV investments.

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Speaking on CNBC's "Squawk Box," GM CFO Paul Jacobson expressed strong confidence in the company's trajectory. "These results are very consistent with what we've been doing for the last several years," Jacobson stated, highlighting that GM's first-half earnings per share are a remarkable 25% higher than any previous first half in its history. He enthusiastically noted that GM's "momentum is palpable," even suggesting that the company's stock, trading around $75 a share (up over 40% year-over-year), is a "bargain" in today's market, driven by "resilient" consumer demand.

Here’s a snapshot of GM's stellar second-quarter performance, measured against average LSEG estimates:

• Adjusted Earnings per Share: $3.57 (vs. $3.20 expected)
• Revenue: $48.03 billion (vs. $47.01 billion expected)

The revised full-year guidance now forecasts adjusted earnings before interest and taxes (EBIT) to be between $14 billion and $16 billion, translating to an adjusted EPS of $12 to $14. This is a significant upgrade from the previous forecast of $13.5 billion to $15.5 billion EBIT, or $11.50 to $13.50 adjusted EPS. Furthermore, the automaker raised its projections for adjusted automotive free cash flow to between $9.5 billion and $11.5 billion, up from the prior $9 billion to $11 billion range.

However, GM did temper expectations for net income attributable to stockholders, revising it down to between $8.4 billion and $9.8 billion, a decrease from earlier guidance of $9.9 billion to $11.4 billion. This marks the second consecutive quarter where GM has adjusted its net income guidance downwards while boosting other key forecasts. For instance, in April, a $500 million tariff rebate influenced a similar adjustment.

Driving these strong results are GM's robust North American operations, alongside expanding digital services revenue and an anticipated improvement in EV losses—projected to narrow by $1 billion to $1.5 billion this year compared to 2025.

"Our 8.6% EBIT-adjusted margin in North America was up 2.5 points from a year ago, and we continue to lower our warranty costs, reduce EV losses, and increase operating efficiency. In addition, GM International, inclusive of our China joint ventures, was profitable," stated Mary Barra, GM CEO and Chair, in her letter to shareholders. Barra also emphasized consistent vehicle pricing and the appeal of GM's lineup of pickup trucks and SUVs as crucial contributors. The company reported an average vehicle transaction price of $52,000 for the quarter, reflecting its disciplined approach to incentives.

GM also announced that it has "substantially" completed the material charges associated with its strategic pullback in all-electric vehicles, which have accumulated to $10.9 billion in EV-related charges since the latter half of last year. As of the second quarter, the company has paid $4.5 billion of an expected $7.2 billion in cash charges related to this EV recalibration.

The General Motors global headquarters in Detroit, Jan. 12, 2026.
Jeff Kowalsky | Bloomberg | Getty Images

For the second quarter, GM reported net income attributable to stockholders of $1.3 billion, a 31.1% decrease year-over-year. However, adjusted earnings soared by approximately 30% to over $3.9 billion, achieving an impressive 8.2% adjusted profit margin. Overall revenue saw a 1.9% increase from the prior year, building on Q2 2025 results that included $47.12 billion in revenue, $1.9 billion in net income attributable to stockholders, and $3.04 billion in adjusted EBIT.