General Motors Beats Second-Quarter Estimates
General Motors reported stronger-than-expected second-quarter results on Tuesday, with both earnings and revenue exceeding Wall Street forecasts.
The automaker also raised its full-year 2026 financial guidance for the second time this year.
GM Earnings and Revenue Top Forecasts
General Motors posted adjusted earnings of $3.57 per share for the second quarter. This comfortably exceeded the analyst consensus estimate of $3.18 per share.
Quarterly revenue reached $48 billion, beating expectations of $46.99 billion.
Revenue increased by 1.9% from $47.1 billion during the same quarter last year.
Full-Year Earnings Guidance Raised
GM increased its adjusted earnings forecast for the full year.
The company now expects adjusted earnings of between $12 and $14 per share. The midpoint of the range stands at $13, above the analyst consensus forecast of $12.79.
This marks the second time that General Motors has upgraded its 2026 outlook.
Adjusted EBIT Outlook Improves
General Motors also raised its adjusted earnings before interest and taxes forecast.
The automaker now expects adjusted EBIT of between $14 billion and $16 billion. Its previous forecast ranged from $13.5 billion to $15.5 billion.
GM also increased its adjusted automotive free cash flow guidance to between $9.5 billion and $11.5 billion.
The company had previously projected free cash flow of between $9 billion and $11 billion.
GM Shares Fall Despite Earnings Beat
Despite the stronger results and improved outlook, General Motors shares fell by 3.3% following the announcement.
The decline suggests that investors may have expected an even stronger performance or remained cautious about the company’s future growth prospects.
Operating Profit and Margins Strengthen
GM reported adjusted EBIT of $3.9 billion during the quarter. This represented an increase of 29.8% from $3 billion one year earlier.
The company’s adjusted EBIT margin improved to 8.2%, compared with 6.4% in the second quarter of 2025.
However, net income attributable to shareholders declined to $1.3 billion from $1.9 billion during the same period last year.
North American Business Leads Growth
GM North America remained the company’s strongest business segment.
The division generated adjusted EBIT of $3.4 billion, compared with $2.4 billion one year earlier.
Its operating margin also improved to 8.6% from 6.1% in the previous year.
GM International reported adjusted EBIT of $190 million. Meanwhile, equity income from China reached $83 million.
GM Financial contributed adjusted earnings before tax of $605 million.
Automotive Cash Flow Jumps
General Motors generated $5.1 billion in automotive operating cash flow during the quarter.
This represented an increase of 9% compared with the same period last year.
Adjusted automotive free cash flow climbed by 78% to $5 billion, up from $2.8 billion one year earlier.
The sharp increase highlights stronger cash generation across GM’s automotive operations.
GM Declares Quarterly Dividend
General Motors’ board declared a quarterly dividend of $0.18 per share.
The dividend will be paid on September 17, 2026, to shareholders on record as of September 4, 2026.
