General Motors beat Wall Street's second-quarter expectations and raised several key earnings forecasts for 2026, the company announced Tuesday. The Detroit automaker credited consistent vehicle pricing, lower warranty costs, and narrowing losses in its all-electric vehicle business.
GM reported adjusted earnings per share of $3.57 for the quarter, compared with the $3.20 analysts had expected. Revenue came in at $48.03 billion, topping the $47.01 billion estimate compiled by LSEG. According to CNBC, those results drove GM to lift its full-year adjusted earnings before interest and taxes guidance to between $14 billion and $16 billion, up from the prior range of $13.5 billion to $15.5 billion.
CFO Paul Jacobson appeared on CNBC's Squawk Box Tuesday morning and put the results in historical context. "Our first-half earnings per share is 25% higher than the first half at any time in our history," he said. Jacobson also called the company's consumer demand "resilient" and described GM's stock, trading at roughly $75 a share and up more than 40% over the past year, as a "bargain."
The company also raised its expectations for adjusted automotive free cash flow to between $9.5 billion and $11.5 billion, up from the previous range of $9 billion to $11 billion. GM did lower its net income attributable to stockholders guidance, however, bringing it down to between $8.4 billion and $9.8 billion from a prior range of $9.9 billion to $11.4 billion. This marks the second consecutive quarter the company has lowered that specific figure while raising other forecasts. In April, GM adjusted guidance to account for a $500 million tariff impact.
North American operations continued to carry the company. CEO and Chair Mary Barra addressed that directly in a letter to shareholders. "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," she wrote.
Barra also pointed to the vehicle lineup as a factor. The company's average transaction price was $52,000 during the quarter. GM said it has remained disciplined about incentives while offering what Barra called a "very attractive lineup" of pickup trucks and SUVs.
The EV picture is shifting, though the transition has been expensive. GM said it has substantially completed material charges tied to its pullback from all-electric vehicles. Since the second half of last year, the company has recorded $10.9 billion in EV-related charges. GM now expects to improve its EV losses by between $1 billion and $1.5 billion in 2026 compared with 2025.
Digital services revenue is also expanding, though GM did not specify figures for that segment in Tuesday's announcement. The company's guidance changes reflect management's confidence that the conditions driving second-quarter performance, including stable pricing and cost discipline, will hold through the rest of the year.
