Tesla (NASDAQ: TSLA | TSLA Price Prediction) and General Motors (NYSE: GM) reported Q2 2026 results within a day of each other. Tesla posted record deliveries of 480,126 vehicles but missed on earnings. GM raised full-year guidance for the second time in 2026 on the back of truck and SUV demand.
Record Deliveries for Tesla, Record Cash for GM Tesla’s top line looked healthy. Revenue rose 25.5% year over year to $28.24 billion, and Services & Other jumped 50% to $4.58 billion at a record 14% gross margin. Under the surface, though, operating margin collapsed to 1.4% as operating expenses surged 47% on AI infrastructure, R&D, and stock-based comp tied to the 2025 CEO Performance Award.
Non-GAAP EPS came in at $0.33 versus a $0.5367 estimate, a miss of nearly 40%. Free cash flow flipped to negative $1.09 billion. FSD attach rate above 55% of new North American deliveries is a bright spot, but the software story has to carry a very heavy capex load.
GM’s quarter looked steady by comparison. Adjusted EPS of $3.57 topped the $3.1844 estimate, the fifth consecutive beat. North America carried the freight: $39.9 billion in revenue, 8.6% EBIT margin, and adjusted EBIT up 42.7%.
Adjusted auto free cash flow climbed 78% to $5.03 billion. GAAP net income fell 31% because CEO Mary Barra took a $2.28 billion EV strategic realignment charge to right-size battery capacity. That is a rare admission from a legacy automaker, and investors rewarded it.
Growth Bet vs. Cash Machine Lens Tesla GM Core Bet Robotaxi, Optimus, FSD software Trucks, SUVs, disciplined capital returns Capex Posture $25B budget under scrutiny Trimming EV overbuild Shareholder Returns None disclosed $2.8B buybacks H1, $0.18 dividend Valuation P/E 344 P/E 29 Tesla is spending like an AI hyperscaler with a car company attached. Robotaxi is now unsupervised in six US metros including Austin, Dallas, Houston, Miami, Orlando, and Tampa, and Optimus lines are being installed at Fremont.
GM is folding Cruise back into the mothership and running its truck franchise for cash. Tesla shares are down 16.83% year to date. GM is up 69.53% over the past year.
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Margins Will Decide the Second Half I will be watching whether Tesla can hold operating margin above the low single digits while capex runs hot.
The Reddit post “Tesla misses on earnings despite revenue beat” drew 184 upvotes and 91 comments, so retail is already flagging the profitability question. Piper Sandler analyst Alexander Potter lowered the firm’s price target on Tesla to $450 from $500 and keeps an Overweight rating on the shares.
For GM, the tell is whether pricing power on Silverado, Tahoe, and Escalade holds as tariff policy shifts. Prediction markets currently give Tesla only a 16.5% chance of launching robotaxis in California by year end, which tells you the crowd is not extrapolating the Texas rollout.
Where the Numbers Point Right Now If you want optionality on autonomy, humanoid robots, and AI compute inside a car company, Tesla is still the only pure play, and I understand paying up for it.
On the numbers, GM screens more defensively: a P/E near 29, a raised full-year outlook of $12 to $14 in adjusted EPS, and real buybacks anchor the story. The signal to watch on Tesla is operating margin recovering above 5% and free cash flow turning positive again.
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Key Takeaways GM beat Q2 earnings estimates and appears better positioned on stronger fundamentals and clearer visibility.Tesla posted record deliveries, but higher SG&A and R&D costs drove a 57% drop in operating income.GM's pricing discipline, $6.3B in first-half free cash flow and 0.39 forward sales multiple support its edge. U.S. legacy automaker General Motors (GM - Free Report) and electric vehicle (EV) and tech giant Tesla (TSLA - Free Report) have released their second-quarter 2026 results. While General Motors surpassed earnings estimates, Tesla missed expectations despite record deliveries as higher SG&A and R&D expenses drove a 57% year-over-year decline in operating income.
Tesla is betting high on autonomous vehicles (AVs) and humanoid robots as its next growth frontier. It is ramping up its unsupervised robotaxi ambitions and riding on increasing FSD (Full Self Driving) subscriptions. Meanwhile, General Motors is benefiting from strong demand for full-size pickups, SUVs and commercial fleet vehicles. The company has maintained pricing discipline instead of relying on heavy discounts, which is supporting margins.
Year to date, shares of Tesla have lost 17%, while GM has inched up roughly 1%. Let’s compare their growth drivers and challenges to see which stock is placed better post second-quarter results.
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The Case for TeslaTesla’s EV sales are showing signs of stabilization, with second-quarter deliveries reaching a record 480,126 vehicles, supported by growth across major regions and stronger Model Y demand. A rising order backlog and increased FSD adoption provide better volume visibility, although sustained growth will depend on pricing discipline and product execution.
Beyond vehicles, Tesla’s Energy Generation and Storage business remains an important diversification opportunity. Storage deployments increased 41% year over year to 13.5 GWh in the second quarter of 2026, while revenues grew to $3.14 billion. Demand for Megapack and Powerwall, supported by data center growth and broader electrification trends, could create a meaningful long-term growth avenue.
Tesla’s biggest upside opportunity lies in autonomy, software and robotics. Robotaxi service is now live in seven U.S. metros, with unsupervised operations ramping in Austin, Dallas, Houston, Miami, Orlando and Tampa. Tesla reported more than 380,000 unsupervised Robotaxi miles across six cities with no notable incidents. Cybercab production has also begun, and Optimus manufacturing lines have been installed, strengthening Tesla’s long-term vision.
However, execution risks remain significant. Tesla’s 2026 capital spending is expected to exceed $25 billion, putting pressure on free cash flow, which turned negative in the second quarter. Energy margins also remain volatile, while declining regulatory credit revenue removes a previous earnings support. Lower vehicle pricing is weighing on automotive gross margins.
Competition in EVs is intensifying, and Tesla is attempting to scale multiple businesses simultaneously. While autonomy, AI and robotics offer huge long-term potential, they also require significant investment and successful execution. Tesla’s balance sheet and technology advantages provide a strong foundation, but the stock’s future returns will depend on whether these emerging businesses can eventually justify the current level of investment and expectations.
The Case for General MotorsGeneral Motors is benefiting from its leadership position in the U.S. market. It has maintained pricing discipline, keeping incentives below industry averages for more than three years, which has supported profitability despite inflationary pressures. GM North America EBIT-adjusted margin improved to 8.6% in the second quarter, returning to its target range, while the upcoming next-generation Chevrolet Silverado and GMC Sierra launches and additional full-size SUV capacity could support future growth.
GM is also making progress in areas that can diversify earnings. Its China operations returned to profitability after restructuring efforts, with equity income improving year over year. Meanwhile, software and digital services represent a long-term opportunity. Growing OnStar subscriptions and Super Cruise adoption could create higher-margin recurring revenue streams, with recognized and deferred software revenues expected to expand meaningfully. New businesses such as GM Energy, GM Defense and GM Insurance further strengthen the company’s ability to generate revenues beyond vehicle sales.
Strong cash generation also bodes well. GM generated $6.3 billion in adjusted automotive free cash flow during the first half of 2026 and continued aggressive share repurchases while maintaining a strong automotive cash balance. The company’s raised 2026 outlook reflects improving execution and confidence in its core operations.
However, near-term challenges remain. Tariffs, commodity inflation and onshoring costs are expected to weigh on profitability, while major truck launches could create temporary production disruptions. EV weakness has also forced GM to restructure its battery and manufacturing footprint, resulting in significant charges. Shipping disruptions affected wholesale volumes in the Middle East, and management expects conditions in the region to remain uncertain.
Overall, GM’s strong U.S. franchise, improving cost discipline and shareholder returns provide a solid foundation. However, near-term cost pressures and EV-related challenges remain.
Valuation & Estimates CheckGM is trading at a forward sales multiple of 0.39. Tesla, meanwhile, trades at a significantly higher valuation, reflecting investor expectations for its AI and autonomous driving businesses. With Tesla continuing to invest aggressively and many of its AI initiatives still years away from generating meaningful earnings, the valuation leaves relatively little room for execution missteps. While GM carries a Value Score of A, Tesla has a Value Score of F.
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The Zacks Consensus Estimate for GM and TSLA’s 2026 EPS has moved up by 3 cents each to $12.88 and $2.16, respectively, over the past seven days.
Our TakeBoth Tesla and GM carry a Zacks Rank #3 (Hold) but the risk-reward profiles are different. Tesla offers significant upside if autonomy, AI and robotics develop as management expects, but investors are paying a premium for businesses that still require substantial execution.
General Motors, meanwhile, is delivering stronger fundamentals today, supported by its profitable core business, disciplined operations and shareholder returns at a much lower valuation. With fewer execution hurdles and clearer earnings visibility, GM appears better positioned post second-quarter results.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
I reiterate a Strong Buy on General Motors with a $104 price target, reflecting 30% upside from $80. The next-generation Silverado and Sierra cycle, higher full-size SUV availability, OnStar growth, lower EV losses and continued share repurchases should drive adjusted EPS toward my 2027 estimate of $14.88. I arrive at my price target by applying a 7x FWD non-GAAP P/E to my 2027 estimated EPS of $14.88.
LONDON--(BUSINESS WIRE)--IONATE today announced a collaboration with General Motors to deploy its Hybrid Intelligent Transformer at GM's Romulus manufacturing plant.
Andra AP fonden purchased a new stake in General Motors Company (NYSE:GM – Free Report) (TSE:GMM.U) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 83,573 shares of the auto manufacturer’s stock, valued at approximately $6,226,000.
Other hedge funds also recently made changes to their positions in the company. Cibc World Market Inc. lifted its holdings in shares of General Motors by 57.2% during the 4th quarter. Cibc World Market Inc. now owns 200,662 shares of the auto manufacturer’s stock valued at $16,318,000 after buying an additional 72,984 shares during the last quarter. M&T Bank Corp increased its holdings in General Motors by 82.0% in the fourth quarter. M&T Bank Corp now owns 72,062 shares of the auto manufacturer’s stock worth $5,860,000 after buying an additional 32,474 shares during the last quarter. Legacy Capital Group California Inc. increased its holdings in General Motors by 206.4% in the fourth quarter. Legacy Capital Group California Inc. now owns 21,004 shares of the auto manufacturer’s stock worth $1,708,000 after buying an additional 14,150 shares during the last quarter. Janney Montgomery Scott LLC raised its position in General Motors by 16.2% during the first quarter. Janney Montgomery Scott LLC now owns 202,172 shares of the auto manufacturer’s stock valued at $15,062,000 after acquiring an additional 28,163 shares in the last quarter. Finally, Leonteq Securities AG bought a new position in General Motors during the fourth quarter valued at approximately $17,753,000. Institutional investors own 92.67% of the company’s stock.
Analyst Ratings Changes Several analysts have commented on GM shares. Citigroup boosted their target price on shares of General Motors from $108.00 to $131.00 and gave the stock a “buy” rating in a research report on Monday, June 1st. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $100.00 price target on shares of General Motors in a report on Wednesday. Wells Fargo & Company lifted their price objective on shares of General Motors from $60.00 to $61.00 and gave the company an “underweight” rating in a research note on Wednesday. Barclays upped their price objective on shares of General Motors from $105.00 to $110.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Benchmark restated a “buy” rating on shares of General Motors in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, General Motors has an average rating of “Moderate Buy” and an average target price of $99.59.
Get Our Latest Stock Report on General Motors
Insider Buying and Selling In other General Motors news, CEO Mary T. Barra sold 215,391 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $80.01, for a total value of $17,233,433.91. Following the sale, the chief executive officer owned 770,491 shares of the company’s stock, valued at $61,646,984.91. This trade represents a 21.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Rory Harvey sold 79,494 shares of General Motors stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $83.02, for a total value of $6,599,591.88. Following the completion of the transaction, the executive vice president directly owned 46,519 shares in the company, valued at approximately $3,862,007.38. This represents a 63.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 697,388 shares of company stock valued at $57,752,596. Insiders own 0.54% of the company’s stock.
Key Headlines Impacting General Motors Here are the key news stories impacting General Motors this week:
Positive Sentiment: GM posted Q2 EPS of $3.57 and revenue of $48.03 billion, both above Wall Street estimates, while adjusted EBIT jumped nearly 30% on strong truck and SUV demand. Positive Sentiment: The company raised its full-year 2026 outlook again, now guiding for adjusted EPS of $12 to $14 and higher EBIT, reinforcing confidence in earnings momentum. Positive Sentiment: Analysts turned more constructive after earnings, with JPMorgan lifting its price target on GM to $120 and keeping an overweight rating, adding fuel to the stock’s rally. Positive Sentiment: Coverage highlighted GM’s strong cash flow and ongoing share repurchases, with the company having spent more than $4 billion on buybacks over the past year, which can support per-share earnings. Neutral Sentiment: GM also announced new gas-powered Cadillac models and a push into defense-related opportunities, suggesting management is broadening growth avenues beyond EVs. Article: At GM, Trump’s Second Term Means Big Trucks—and a Push Into the Defense Industry Neutral Sentiment: The company is still absorbing EV-related restructuring costs and faces tariff, labor, and broader auto-industry risks, which could limit upside if demand softens or costs rise. Negative Sentiment: GM Korea labor unions are continuing partial strikes, adding a potential operational headwind. Article: GM Korea’s unionised workers continue partial strikes General Motors Stock Performance Shares of GM opened at $82.23 on Thursday. The company has a market capitalization of $74.15 billion, a PE ratio of 41.53, a price-to-earnings-growth ratio of 0.40 and a beta of 1.31. General Motors Company has a one year low of $49.87 and a one year high of $87.62. The company has a debt-to-equity ratio of 1.42, a current ratio of 1.14 and a quick ratio of 0.99. The company’s fifty day moving average price is $79.03 and its 200 day moving average price is $78.83.
General Motors (NYSE:GM – Get Free Report) (TSE:GMM.U) last released its earnings results on Tuesday, July 21st. The auto manufacturer reported $3.57 earnings per share for the quarter, topping analysts’ consensus estimates of $3.19 by $0.38. General Motors had a net margin of 1.05% and a return on equity of 18.18%. The firm had revenue of $48.03 billion during the quarter, compared to analyst estimates of $47.01 billion. During the same quarter in the previous year, the business earned $2.53 EPS. The business’s revenue was up 1.9% on a year-over-year basis. General Motors has set its FY 2026 guidance at 12.000-14.000 EPS. As a group, analysts expect that General Motors Company will post 12.88 earnings per share for the current year.
General Motors Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Friday, September 4th will be given a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Friday, September 4th. General Motors’s payout ratio is currently 29.03%.
General Motors Company Profile (Free Report)
General Motors Company (NYSE: GM) is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world’s largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM’s operations encompass vehicle financing, connected services and advanced mobility initiatives.
GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.
Further Reading Five stocks we like better than General Motors Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play
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Assetmark Inc. decreased its stake in shares of General Motors Company (NYSE:GM – Free Report) (TSE:GMM.U) by 66.9% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 43,268 shares of the auto manufacturer’s stock after selling 87,530 shares during the quarter. Assetmark Inc.’s holdings in General Motors were worth $3,223,000 at the end of the most recent quarter.
Other institutional investors also recently bought and sold shares of the company. PeakShares LLC grew its holdings in General Motors by 10.2% during the 1st quarter. PeakShares LLC now owns 3,376 shares of the auto manufacturer’s stock valued at $252,000 after buying an additional 312 shares in the last quarter. Angeles Wealth Management LLC grew its holdings in shares of General Motors by 17.3% in the first quarter. Angeles Wealth Management LLC now owns 4,431 shares of the auto manufacturer’s stock valued at $330,000 after purchasing an additional 654 shares in the last quarter. Financiere des Professionnels Fonds d investissement inc. grew its holdings in shares of General Motors by 54.2% in the first quarter. Financiere des Professionnels Fonds d investissement inc. now owns 24,386 shares of the auto manufacturer’s stock valued at $1,817,000 after purchasing an additional 8,570 shares in the last quarter. Bessemer Group Inc. increased its position in General Motors by 28.5% in the first quarter. Bessemer Group Inc. now owns 19,487 shares of the auto manufacturer’s stock worth $1,451,000 after purchasing an additional 4,319 shares during the last quarter. Finally, Independent Financial Group LLC purchased a new stake in General Motors during the first quarter valued at $219,000. 92.67% of the stock is owned by hedge funds and other institutional investors.
Insider Buying and Selling at General Motors In other news, CEO Mary T. Barra sold 215,391 shares of the company’s stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $80.01, for a total transaction of $17,233,433.91. Following the transaction, the chief executive officer owned 770,491 shares of the company’s stock, valued at approximately $61,646,984.91. This represents a 21.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Christopher Hatto sold 6,895 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $85.00, for a total value of $586,075.00. Following the completion of the sale, the chief accounting officer owned 25,794 shares in the company, valued at approximately $2,192,490. The trade was a 21.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 697,388 shares of company stock worth $57,752,596 over the last 90 days. Company insiders own 0.54% of the company’s stock.
General Motors News Summary Here are the key news stories impacting General Motors this week:
Positive Sentiment: GM posted Q2 EPS of $3.57 and revenue of $48.03 billion, both above Wall Street estimates, while adjusted EBIT jumped nearly 30% on strong truck and SUV demand. Positive Sentiment: The company raised its full-year 2026 outlook again, now guiding for adjusted EPS of $12 to $14 and higher EBIT, reinforcing confidence in earnings momentum. Positive Sentiment: Analysts turned more constructive after earnings, with JPMorgan lifting its price target on GM to $120 and keeping an overweight rating, adding fuel to the stock’s rally. Positive Sentiment: Coverage highlighted GM’s strong cash flow and ongoing share repurchases, with the company having spent more than $4 billion on buybacks over the past year, which can support per-share earnings. Neutral Sentiment: GM also announced new gas-powered Cadillac models and a push into defense-related opportunities, suggesting management is broadening growth avenues beyond EVs. Article: At GM, Trump’s Second Term Means Big Trucks—and a Push Into the Defense Industry Neutral Sentiment: The company is still absorbing EV-related restructuring costs and faces tariff, labor, and broader auto-industry risks, which could limit upside if demand softens or costs rise. Negative Sentiment: GM Korea labor unions are continuing partial strikes, adding a potential operational headwind. Article: GM Korea’s unionised workers continue partial strikes Analyst Upgrades and Downgrades Several equities analysts have commented on GM shares. Royal Bank Of Canada lifted their price objective on shares of General Motors from $94.00 to $100.00 and gave the stock an “outperform” rating in a research note on Wednesday. Wolfe Research upgraded shares of General Motors from a “peer perform” rating to an “outperform” rating and set a $96.00 target price on the stock in a research report on Wednesday, March 25th. Benchmark reaffirmed a “buy” rating on shares of General Motors in a report on Tuesday. Piper Sandler reiterated an “overweight” rating and issued a $102.00 price target on shares of General Motors in a research report on Wednesday, April 29th. Finally, Morgan Stanley boosted their price objective on General Motors from $100.00 to $101.00 and gave the stock an “overweight” rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $99.59.
Get Our Latest Stock Analysis on General Motors
General Motors Trading Up 3.4% GM stock opened at $82.23 on Thursday. General Motors Company has a twelve month low of $49.87 and a twelve month high of $87.62. The stock has a market capitalization of $74.15 billion, a price-to-earnings ratio of 41.53, a price-to-earnings-growth ratio of 0.40 and a beta of 1.31. The company has a quick ratio of 0.99, a current ratio of 1.14 and a debt-to-equity ratio of 1.42. The firm’s fifty day simple moving average is $79.03 and its two-hundred day simple moving average is $78.83.
General Motors (NYSE:GM – Get Free Report) (TSE:GMM.U) last released its earnings results on Tuesday, July 21st. The auto manufacturer reported $3.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.19 by $0.38. General Motors had a net margin of 1.05% and a return on equity of 18.18%. The firm had revenue of $48.03 billion during the quarter, compared to analyst estimates of $47.01 billion. During the same quarter last year, the business earned $2.53 EPS. The business’s revenue was up 1.9% on a year-over-year basis. General Motors has set its FY 2026 guidance at 12.000-14.000 EPS. As a group, analysts anticipate that General Motors Company will post 12.88 earnings per share for the current year.
General Motors Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Friday, September 4th will be paid a $0.18 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.72 annualized dividend and a yield of 0.9%. General Motors’s dividend payout ratio (DPR) is presently 29.03%.
About General Motors (Free Report)
General Motors Company (NYSE: GM) is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world’s largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM’s operations encompass vehicle financing, connected services and advanced mobility initiatives.
GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.
See Also Five stocks we like better than General Motors Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play
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Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The Q2 earnings season is displaying exceptional momentum, characterized by widespread beat rates and an accelerating growth pace. Both earnings and revenue growth—alongside the percentage of positive surprises—are tracking well above recent quarterly averages. While it is still relatively early in the reporting cycle, with results from only 16% of S&P 500 members out, these early results strongly validate the underlying health and resilience of the corporate earnings picture.For the 81 S&P 500 companies that have reported Q2 results already, total earnings are up +40.6% from the same period last year on +13.3% higher revenues, with 91.4% beating EPS estimates and 81.5% beating revenue estimates.This is a notably better showing from these 81 index members relative to other recent periods, both in terms of the earnings and revenue growth rates as well in terms of the beats percentages. The EPS and revenue beats percentages for these 81 index members is matching the 5-year high from 2021 Q3.The Q2 earnings and revenue growth rates have been boosted by Micron’s (MU) very strong quarterly results, but the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron from these results. Excluding Micron, Q2 earnings for the remaining 80 index members that have reported Q2 results would be up +20.5% (vs. +40.6% otherwise) on +9.9% higher revenues (vs. +13.3% otherwise). High Beat Rates Against Rising EstimatesWhile the big banks and brokerages provided a powerful launchpad for the Q2 earnings season, reporting momentum has rapidly expanded well beyond the Finance sector. The central theme emerging across the broader market remains one of consistent, widespread strength.
Companies across a diverse spectrum of industries—ranging from General Motors (GM - Free Report) and AT&T (T - Free Report) to Wabtec (WAB - Free Report) and CME Group (CME - Free Report) —are comfortably topping consensus estimates. More importantly, management commentary across these varied sectors continues to offer reassuring signals regarding underlying demand and operational resilience in their respective markets.
As shown below, the proportion of companies beating both Q2 EPS and revenue estimates is tracking at a 20-quarter high.
Image Source: Zacks Investment Research
What makes this achievement particularly impressive is the backdrop: analysts actually revised Q2 estimates upward heading into reporting season. This stands in stark contrast to historical trends, where earnings expectations are typically lowered ahead of time to create an easy bar for companies to clear. Beating these elevated expectations underscores the genuine underlying strength of corporate earnings.
The Earnings Big PictureThe chart below shows S&P 500 expectations for 2026 Q2 in terms of what was achieved in the preceding four periods and what is currently expected for the following three quarters.
Image Source: Zacks Investment Research
The chart below shows the overall earnings picture for the S&P 500 index on an annual basis.
Image Source: Zacks Investment Research
As with estimates for Q2, estimates for full-year 2026 have also been steadily going up, particularly since the start of March. The chart below shows the evolution of aggregate S&P 500 earnings estimates since last July.
Image Source: Zacks Investment Research
Full-year 2026 earnings estimates have increased for 11 of the 16 Zacks sectors since the start of March, with the most pronounced gains at the Energy, Basic Materials, Tech, Industrials, Utilities, and Business Services sectors. On the negative side, estimates have been under pressure for the Transportation, Autos, Medical, and Consumer Discretionary sectors since the start of March. History suggests that these favorable revisions will get a boost from the Q2 earnings season and updated management guidance.
General Motors shares are climbing with conviction. Why is GM stock surging? GM Beats Expectations With Strong Q2 Earnings and Expanding MarginsGeneral Motors delivered adjusted diluted earnings of $3.57 per share in the second quarter, clearing the $3.20 consensus by a meaningful margin, while revenue of $48.03 billion came in roughly $1 billion ahead of expectations. Adjusted EBIT climbed nearly 30% to $3.94 billion as the adjusted margin expanded to 8.2% from 6.4% a year earlier.
The North American business was the engine behind the outperformance, with adjusted EBIT in the region surging 42.7% to $3.45 billion as demand for full-size pickups and SUVs remained robust and the company kept incentives disciplined. CEO Mary Barra said the company is building everything it can sell in its most profitable segments and that GM held 43% of the full-size pickup market during the quarter.
Full‑Year Guidance Raised on Strength and Upcoming Truck LaunchesManagement raised its full-year adjusted EPS outlook to a range of $12 to $14 from the prior $11.50 to $13.50 and lifted its adjusted EBIT guidance to $14 billion to $16 billion from $13.5 billion to $15.5 billion. The next-generation Chevrolet Silverado and GMC Sierra pickups are set to begin arriving at dealerships in December, with management expressing confidence that improving business trends will support revenue, margins and cash flow into 2027 and beyond.
Several major analysts raised targets or reiterated bullish ratings on General Motors:
GM Shares Are RisingGM Price Action: General Motors shares were up 2.69% at $81.66 at the time of publication on Wednesday, according to Benzinga Pro.
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General Motors (GM +3.39%) raised its full-year profit outlook on Tuesday for the second time this year, and the stock rose about 5% in response.
The automaker now expects 2026 adjusted earnings before interest and taxes (EBIT) of $14 billion to $16 billion -- up from a prior range of $13.5 billion to $15.5 billion. It also lifted its adjusted earnings per share forecast to $12 to $14, from $11.50 to $13.50, and raised its outlook for adjusted automotive free cash flow to $9.5 billion to $11.5 billion. Through six months, adjusted earnings per share of $7.27 is already running 37% ahead of last year.
Guidance raises usually trace back to a hot product or a booming market. GM's is more interesting than that. Management pointed to steady vehicle pricing, falling warranty costs, and shrinking losses in the electric-vehicle business the company has spent the past year pulling back from.
Image source: Getty Images.
A quarter better than its headline profit On the surface, GM's second quarter looks mixed. Revenue rose just 1.9% year over year to $48 billion, and net income fell 31% to $1.3 billion.
But the profit decline is mostly an accounting story. The quarter absorbed $2.3 billion of charges tied to GM's electric-vehicle realignment.
Set those one-time items aside, and the quarter looks strong. Adjusted earnings per share rose about 41% year over year to $3.57, and adjusted EBIT climbed about 30% to $3.9 billion. Adjusted automotive free cash flow of $5 billion, up 78% year over year, told the same story. And GM's EBIT-adjusted margin expanded to 8.2%, from 6.4% a year earlier.
North America did the heavy lifting.
"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," CEO Mary Barra said in her letter to shareholders.
Pricing held up, too. GM's average vehicle transaction price was $52,000 during the quarter, and management said it stayed disciplined on incentives. For an automaker, holding price without buying sales through discounts is about as good a sign as a quarter can give.
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The part that turned: electric vehicles The most surprising driver of the improvement is the EV business itself. GM has spent the past year shrinking its EV ambitions to match real-world demand, and the cleanup that came with that decision has been expensive (the company has recorded $10.9 billion in EV-related charges since the second half of last year). On Tuesday, GM said the expected material cash charges are now substantially complete. And with the restructuring mostly behind it, the remaining EV business is losing much less money; GM expects its EV losses to improve by $1 billion to $1.5 billion this year compared with 2025.
At about $80 per share, GM trades at roughly 6 times the midpoint of its guided adjusted earnings per share for this year. The market rarely pays up for automakers, given the industry's cyclicality and capital intensity. Even so, a multiple this low, backed by two guidance raises in one year, leaves a lot of pessimism baked into the price.
Of course, there are risks. Tariffs remain a moving target for the industry. And the pricing strength carrying GM's results can't be counted on forever -- the company's own guidance assumes North America pricing rises only about 0.5%. If demand softens and incentives creep back up, earnings power would likely shrink as well.
Still, I think GM has earned some benefit of the doubt. The company just showed it can grow profits without growing revenue much. In addition, the EV cleanup is mostly paid for, and management raised the bar twice in one year. Even after Tuesday's pop, the shares also sit below their 52-week high of $87.62. For investors hunting for a genuine value stock in this market, GM looks like one. And at about 6 times this year's guided earnings, they aren't paying much for the progress.
General Motors (GM +3.21%) reported its second-quarter earnings, and the results beat expectations on both the top and bottom lines. In an interview on CNBC, CFO Paul Jacobson called the company's stock a "bargain," even though the share price has risen by more than 40% over the past year.
Is he right? There are certainly some good reasons to believe GM is extremely cheap right now, but there are also a few not-so-positive things to keep in mind. Here's a rundown of GM's second-quarter results, the case for why the stock is an incredible bargain, and the important things to watch going forward.
Image source: Getty Images.
An extremely solid quarter In the second quarter, GM generated $48 billion in revenue, about a billion dollars more than analysts had expected, and adjusted earnings per share (EPS) beat by a wide margin. Automotive free cash flow of about $5 billion was 78% higher than a year ago. One particularly impressive statistic Jacobson pointed out in the conference call was that "Our first-half earnings per share is 25% higher than the first half at any time in our history."
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Plus, the automaker increased its full-year guidance for adjusted EPS, automotive free cash flow, and several other profitability metrics. Adjusted EBIT margin expanded by 2.5 percentage points year-over-year, and GM's margins have notably expanded at the same time its peer group has seen margins fall. The company has a dominant lead in the high-margin full-size pickup market, and the software and services side of the business, which includes products like OnStar and Super Cruise, continues to grow impressively. In addition, GM's insurance business has rapidly scaled from being in just three states in 2024 to 21 states now. And last but certainly not least, GM's defense business has excellent momentum, and management is hopeful this segment will turn profitable this year.
Thanks to its strong cash flow, GM continues to buy back stock at an aggressive pace. In the second quarter alone, the company spent $2 billion to repurchase about 25 million shares. The outstanding share count has declined by 8% over the past year and 35% over the past three years, which could continue to drive EPS higher going forward.
It's not all good news GM certainly reported a strong quarter, but it wasn't a perfect one. While it beat expectations on adjusted EPS, this excludes a $2.3 billion one-time charge related to scaling back the company's EV strategy. On a GAAP basis, GM's net income actually declined by about 31% year-over-year.
Market share is arguably the biggest concern. A year ago, GM had 17.4% of the U.S. market, which has since declined to 16.6%. To be fair, there were some good reasons, such as the strategic decision to discontinue certain models and the reduction in EV incentives that had disproportionately helped GM. But this is worth keeping an eye on.
Finally, although it came in above expectations, GM's revenue grew by less than 2% year-over-year. It's important for investors to understand that this quarter was about earnings quality, not overall business growth.
Is GM a bargain at a sub-$80 stock price? In full disclosure, General Motors is one of the largest stock investments in my portfolio, and it's a company I truly believe in as a long-term holding. Over the past decade or so, the company has done a great job of innovation, becoming more efficient, and of allocating capital in shareholder-friendly ways. Having said that, the stock isn't without risk, and it's important to realize this is a cyclical business and not all the numbers look perfect.
Even so, GM trades for a ridiculously cheap valuation of just 6.3 times forward earnings, and there's a lot to like about the company's current trajectory. I'm planning to continue to build my position at these levels, and I'm excited to see what comes next.
Buried in the company’s prepared remarks was a figure that has quietly grown into a multibillion-dollar asset: $6.3 billion in deferred revenue. That growing backlog reflects what CFO Paul Jacobson called GM’s “highly profitable software and services revenue,” a business that continues to expand through connected vehicles, subscriptions and digital services rather than one-time vehicle sales.
The number offers perhaps the clearest sign yet that GM wants investors to think beyond vehicles and begin valuing the company as a recurring revenue business.
GM’s Software Business Is Quietly Getting BiggerAccording to Jacobson, GM expects “more than $3 billion of software and services revenue” in 2026 while ending the year with “$6.3 billion of deferred revenue on our balance sheet.” He also said the company expects “over 1 million new software subscriptions” this year, underscoring the growing contribution of connected vehicle services.
Unlike vehicle sales, which are recognized immediately, deferred revenue represents money that will be recognized over time as customers continue paying for software-enabled features and services. Every new subscription adds to a backlog of future revenue that is already under contract.
The strategy marks a notable shift for a company historically valued on vehicle deliveries and manufacturing scale. Instead, GM is increasingly generating recurring revenue long after customers leave the dealership through connected services, Super Cruise and other digital offerings.
The Bigger Story Isn’t Cars. It’s Recurring Revenue.GM reinforced that strategy elsewhere during the earnings call by expanding one of its flagship software products.
Barra said the company is “making Super Cruise standard on our High Country Silverado and Denali Sierra” while expanding availability across much of the pickup lineup. Beginning with the 2027 model year, she said the move is expected to add “approximately 160,000 incremental Super Cruise units annually.”
For investors, that announcement is about more than a premium driver-assistance feature. Every additional Super Cruise-equipped vehicle creates another opportunity for GM to deepen customer engagement and expand its recurring software business over time.
The deferred revenue balance, meanwhile, offers a tangible measure of that transformation. As Jacobson put it, “Our highly profitable software and services revenue continues to grow,” highlighting a business that is becoming an increasingly meaningful contributor to GM’s earnings profile.
Photo courtesy: Jonathan Weiss / Shutterstock.com
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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
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A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: General Motors (GM - Free Report) One of the world’s largest automakers, General Motors held the largest share of the U.S. auto market at 16.5% in 2024. Headquartered in Detroit, the auto giant has had a long and checkered history. Founded in 1908, the company rose to dominate the U.S. industry. However, hit by the financial crisis, General Motors filed for bankruptcy on Jun 1, 2009. Just within 40 days, the firm emerged from bankruptcy. In 2010, the company launched its IPO – the biggest in U.S. history at that time – and has been steadily profitable since then. From going bankrupt in 2009 to becoming one of the world’s best-run car companies, General Motors has indeed come a long way.
GM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.17; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $12.88 per share. GM boasts an average earnings surprise of +22.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, GM should be on investors' short list.
Key Takeaways General Motors raised 2026 EBIT-adjusted guidance to $14B-$16B and EPS guidance to $12-$14.Strong pickup demand, steady pricing and onshoring underpin GM's confidence in 2027 execution.GM sees software revenues topping $3B as EV losses improve by $1B-$1.5B this year. General Motors Company (GM - Free Report) used its second-quarter 2026 earnings call to press a forward-looking message. Management raised full-year guidance again and argued that stronger North American execution, software growth and tighter EV economics are setting up a better 2027.
The quarter itself delivered a strong performance. Adjusted EPS of $3.57 beat the Zacks Consensus Estimate of $3.13. Revenues of $48.03 billion topped the consensus mark of $46.56 billion.
GM Raises Guidance AgainChief financial officer Paul Jacobson said GM’s first-half performance gave management enough confidence to lift all key 2026 targets. The company now expects EBIT-adjusted of $14 billion to $16 billion, adjusted EPS of $12 to $14 and adjusted automotive free cash flow of $9.5 billion to $11.5 billion.
Jacobson said the higher outlook reflects improved pricing and warranty assumptions, along with a slightly better commodity view. GM’s CFO also stressed that the revised guidance does not assume a material escalation in the Middle East or a significant rise in inflationary pressures from current levels.
The quarter provided the backdrop for that move. Adjusted EPS rose from $2.53 a year earlier, while revenues increased 1.9% and EBIT-adjusted climbed 29.8% to $3.9 billion.
General Motors Leans on Trucks and OnshoringChair and CEO Mary Barra made full-size pickups and SUVs the centerpiece of the call. She said North American demand remains steady, pricing is holding and GM’s share of the U.S. full-size pickup market stood above 42% in the first half.
Barra also framed the next-generation Chevrolet Silverado and GMC Sierra launch as a major 2027 lever. The trucks begin reaching showrooms in December, with improved ride quality, towing, power and design, while GM plans to maintain record production volumes during the launch.
On tariffs, management argued that onshoring is becoming both an offensive and defensive move. Barra said GM is bringing U.S. production capacity to more than 2 million units starting next year, while Jacobson said it still expects gross tariff costs of $2.5 billion to $3.5 billion for 2026.
GM’s EV Reset Nears a Turning PointJacobson gave investors one of the clearest updates on GM’s EV restructuring. In the second quarter, the company recorded $2.3 billion of incremental EV-related charges, including supplier cash charges, battery supply-chain cash charges and noncash impairments.
He said GM has now recorded $10.9 billion of EV-related charges since the second half of 2025, with about $7.2 billion carrying a cash impact. Through the end of the second quarter, GM had paid $4.5 billion of that amount.
The message from management was that the largest cash pain is getting close to the rearview mirror. Jacobson said the actions substantially complete the material cash charges GM expects as it aligns EV capacity with regulatory and demand changes, while still targeting a $1 billion to $1.5 billion improvement in full-year EV losses.
General Motors Pushes Software and Side BusinessesJacobson and Barra repeatedly returned to software and services as a margin story rather than just a technology story. Barra said GM expects 1 million new subscriptions this year, supporting more than $3 billion in recognized software and services revenues.
Jacobson added that deferred revenues tied to the OnStar digital business reached $6.3 billion, up almost 50% from a year ago, while second-quarter recognized revenues rose 20% to $800 million. He said that growth should continue into 2027 as Super Cruise expands across more pickup trims.
Management also highlighted GM Defense and GM Insurance as longer-cycle contributors. Barra said GM Defense expects nearly $700 million in 2026 revenues and is targeting positive EBIT this year, while describing both businesses as ways to make GM less cyclical over time.
GM Q&A Sharpens the 2027 BridgeAnalysts used the Q&A to test how much of management’s 2027 confidence rests on pricing, trucks and software. A UBS analyst asked about Super Cruise scaling and pricing, and Barra responded that GM sees high attach rates after included trial periods and remains optimistic as the feature spreads across more vehicles.
A Barclays analyst pressed on whether the guidance raise should have been larger. Jacobson answered cautiously, saying commodity assumptions have stabilized rather than turned favorable, while better pricing and warranty trends are helping offset back-half cost pressures.
A Wolfe Research analyst and a JPMorgan analyst both pushed on the 2027 bridge. Jacobson said margin expansion drivers such as warranty, EV profitability and digital revenues are multi-year in nature, while onshoring costs should be more balanced next year as production ramps.
General Motors Keeps Stressing ExecutionBarra’s closing message was consistent with the rest of the call. She described it as a company with a stronger vehicle portfolio, expanding software revenues and additional growth avenues outside the traditional auto cycle.
That framing mattered because management did not present 2027 as a leap of faith. Instead, it tied next year’s outlook to trucks, tariff mitigation, subscription growth, lower EV drag and continued share repurchases.
GM’s Zacks SignalsGM carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of B, Momentum Score of A and VGM Score of A. Under the Zacks framework, the Style Scores are designed to complement the rank, with stronger letter grades indicating more attractive value, growth and momentum characteristics over the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
That combination points to favorable style characteristics, but the Zacks system places the greatest weight on earnings estimate revisions. A Zacks Rank #3 can still be held, and the stronger Style Scores improve the profile, though the rank can change as analysts revise estimates after the quarter.
SummaryGeneral Motors Company delivered strong Q2 results, with revenues up 2% and improved North American margins, driven by higher-margin services like OnStar.GM upgraded its 2024 guidance, projecting adjusted auto FCF of $9.5B–$11.5B and adjusted EBIT of $14.0B–$16.0B, reflecting resilient profitability.I maintain a Hold rating on GM, primarily due to broader auto industry risks, rising competition from Chinese automakers, and global market share declines.GM’s focus on high-margin trucks/SUVs and disciplined incentives supports profitability, but risks in China and macroeconomic headwinds warrant caution. jetcityimage/iStock Editorial via Getty Images
High gasoline prices likely aren’t helping General Motors Company (GM), but the company put in a solid performance anyway in the second quarter, with reported revenues up about 2%. Better yet, margins in North
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General Motors reported quarterly earnings of $3.57 per share which beat the analyst consensus estimate of $3.20 per share. The company reported quarterly sales of $48.026 billion which beat the analyst consensus estimate of $47.011 billion.
GM raised its 2026 adjusted EPS guidance to $12-$14 from its previous range of $11.50-$13.50. The new outlook compares with the analyst consensus estimate of $12.76. The automaker also increased its adjusted EBIT guidance to $14 billion-$16 billion from $13.5 billion-$15.5 billion.
However, GM lowered its GAAP diluted EPS forecast to $8.98-$10.98 from $10.62-$12.62. Analysts had expected $10.80.
General Motors shares fell 2.5% to trade at $168.72 on Wednesday.
These analysts made changes to their price targets on General Motors following earnings announcement.
Barclays analyst Dan Levy maintained the stock with an Overweight rating and raised the price target from $105 to $110. JP Morgan analyst Rajat Gupta maintained the stock with an Overweight rating and raised the price target from $110 to $120. RBC Capital analyst Tom Narayan maintained the stock with an Outperform rating and raised the price target from $94 to $100. Considering buying GM stock? Here’s what analysts think:
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Key Takeaways General Motors delivered its 16th straight earnings beat and raised full-year 2026 guidance.GM's truck and SUV strength, pricing discipline and software growth continue to support earnings.General Motors still faces tariff costs, EV restructuring charges and high capital spending pressures. General Motors (GM - Free Report) delivered another strong quarter, posting its 16th consecutive earnings beat in the second quarter of 2026. Adjusted earnings of $3.57 per share rose 41.3% year over year and topped the Zacks Consensus Estimate by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate by 3.15%.
Backed by solid execution and disciplined pricing, management also increased full-year 2026 guidance. Adjusted EBIT guidance was raised to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected to be $12-$14 per share, up from the prior range of $11.50-$13.50. The adjusted automotive free cash flow forecast was lifted to $9.5-$11.5 billion from $9-$11 billion.
Investors welcomed the upbeat results, sending GM shares up roughly 5% yesterday. Over the past year, shares of GM have risen 51%, outperforming peers like Ford (F - Free Report) and Tesla (TSLA - Free Report) . While Tesla will report results today after market close, Ford will release its quarterly earnings on July 28.
1-Year Price Performance Comparison Image Source: Zacks Investment Research
General Motors benefits from its U.S. market leadership. The upcoming next-generation pickup cycle and added full-size SUV capacity could provide additional earnings momentum. So, is the stock worth buying at current levels? Or do near-term headwinds warrant a more cautious approach? Let's dig deeper.
What's Working in GM's Favor?General Motors continues to execute well across its core business. Its biggest strength remains the North American truck and SUV franchise, where disciplined pricing and a profitable product mix continue to support earnings. Unlike many automakers that have relied on heavy discounts to stimulate demand, General Motors has kept incentives below the industry average for more than three years. This helped GM North America's adjusted EBIT margin recover to 8.6% in the second quarter and 9.3% in the first half, returning to management's target range of 8%-10%.
The upcoming launches of the next-generation Chevrolet Silverado and GMC Sierra, along with expanded full-size SUV production and increased U.S. manufacturing capacity, should support earnings growth over the next two years. Reflecting this confidence, management raised its 2026 earnings guidance and expects 2027 results to exceed 2026.
GM is also building higher-margin revenue streams beyond vehicle sales. OnStar subscriptions continue to grow, while Super Cruise is expanding across more vehicle models. Management expects software-related recognized revenues to exceed $3 billion this year, with deferred revenues approaching $7.5 billion. The company is also seeing improving profitability in China following restructuring, while businesses such as GM Energy, GM Defense and GM Insurance provide additional long-term growth opportunities.
Strong cash generation has enabled continued shareholder returns, with $6.3 billion of adjusted automotive free cash flow generated in the first half and $2.8 billion returned through share repurchases.
Key Risks Investors Should WatchDespite these strengths, several near-term headwinds remain. Tariffs, commodity inflation and rising onshoring costs are expected to pressure margins through the remainder of 2026. GM still expects gross tariff exposure of $2.5-$3.5 billion this year. Commodity inflation, including logistics, is expected between $1.2 billion and $1.7 billion in 2026, an improvement from its previous outlook but still a meaningful drag on profitability.
The launch of next-generation pickups is likely to weigh on fourth-quarter production and profitability. The electric vehicle business also remains a drag. GM has incurred nearly $11 billion of EV-related restructuring charges since the second half of 2025, highlighting the challenges of aligning production with softer-than-expected EV demand. Although the largest cash outflows appear to be behind the company, profitability in the EV segment remains elusive.
Finally, GM continues to invest heavily in future growth. Planned capital expenditures of $10-$12 billion this year should strengthen its long-term competitive position, but they also reduce financial flexibility if vehicle pricing weakens, product launches are delayed or macroeconomic conditions deteriorate.
GM’s Valuation & Estimates CheckDespite the rally, GM appears undervalued now. The company is trading at a forward earnings multiple of 5.83, lower than its closest peer, Ford. Tesla, meanwhile, continues to trade at a significantly higher valuation, reflecting investor expectations for its AI and autonomous driving businesses rather than its core automotive operations.
GM's P/E F12M Vs. TSLA & F Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GM’s 2026 and 2027 EPS implies year-over-year growth of 22% and 11%, respectively. The EPS estimates for 2026 and 2027 have moved up by 3 cents and 2 cents, respectively, over the past seven days.
How to Play General Motors Stock NowGeneral Motors remains one of the better-positioned legacy automakers, backed by a strong truck franchise, disciplined pricing and improving software economics. Its valuation also leaves little room for concern, trading at a meaningful discount to peers. However, tariffs, persistent EV-related costs and elevated capital spending are likely to temper earnings expansion over the next few quarters.
While the long-term story remains intact, the current risk-reward appears fairly balanced. With a Zacks Rank #3 (Hold), the stock is worth holding, but not compelling enough to chase after its recent rally.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
FARNBOROUGH, England--(BUSINESS WIRE)--Vertical Aerospace (Vertical) (NYSE: EVTL), a global aerospace and technology company pioneering electric aviation, announced it has signed a Memorandum of Understanding (MoU) with the General Authority of Civil Aviation (GACA) of the Kingdom of Saudi Arabia. The collaboration seeks to help establish the regulatory and operational foundations needed to enable Advanced Air Mobility in Saudi Arabia. The agreement, which supports Vertical's strategy of workin.
Revenue: $92 billion in the first half of 2026; $48 billion in Q2 2026, up $900 million year-over-year.EBIT Adjusted: $8.2 billion in the first half of 2026; $
Pozitivní nálada vydržela po celou obchodní seanci. Obrat na čipovém sektoru udržel technologický NASDAQ výrazně v plusu. Přesto klasické technologie z magnificent 7 skončily v záporu (Amazon -0,98 %). To vše se dělo při stále rostoucí cenně ropy. Investoři sledují především čísla hospodaření a geopolitika šla mírně stranou.
Z čipového sektoru se dařilo především výrobci paměťových čipů Micron +12,04 %, Sandisk +14% či výrobce procesorů Intel +8,64 %.
Automobilový koncern General Motors po zveřejněných kvartálních výsledcích přidal + 4,87 %.
Obrat zažily jak cenné kovy (zlato +1,85 %) tak kryptoměny (Bitcoin +1,61 %). Z růstu kryptoměn těžily akcie burzy Coinbase +9,67 %.
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Index S&P 500 +0,89 % na 7509,21 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +2,3 % Nezbytná spotřeba -1 % Energie +1,2 % Komunikační služby -0,8 % Zdravotní péče +0,6 % Utility +0 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Sandisk Corp (SNDK) +14 % Danaher Corp (DHR) -11 % Western Digital Corp (WDC) +13 % MSCI (MSCI) -10 % Micron Technology (MU) +12 % Tyler Technologies (TYL) -5,7 % Teradyne (TER) +12 % Halliburton (HAL) -5,5 % Coherent Corp (COHR) +11 % Gartner (IT) -4,5 %
Jan Pazourek, Fio banka, a.s.
Marley Kayden discusses General Motors' (GM) latest earnings as shares rally on a beat and raise quarter. She says consumer demand in North America remains strong even as tariffs and an unclear geopolitical backdrop pose last challenges.
General Motors Company (GM) Q2 2026 Earnings Call July 21, 2026 8:30 AM EDT
Company Participants
Ashish Kohli - Vice President of Investor Relations
Mary Barra - Chairman & CEO
Paul Jacobson - Executive VP & CFO
Conference Call Participants
Joseph Spak - UBS Investment Bank, Research Division
Dan Levy - Barclays Bank PLC, Research Division
Andrew Percoco - Morgan Stanley, Research Division
Itay Michaeli - TD Cowen, Research Division
Michael Ward - Citigroup Inc., Research Division
Emmanuel Rosner - Wolfe Research, LLC
Gautam Narayan - RBC Capital Markets, Research Division
Mark Delaney - Goldman Sachs Group, Inc., Research Division
Rajat Gupta - JPMorgan Chase & Co, Research Division
Presentation
Operator
Good morning, and welcome to the General Motors Company Second Quarter 2026 Earnings Conference Call.
[Operator Instructions] As a reminder, this conference call is being recorded, Tuesday, July 21, 2026. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.
Ashish Kohli
Vice President of Investor Relations
Thanks, Julie, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the second quarter of 2026. Our conference call materials were issued this morning and are available on GM's Investor Relations website. We are also broadcasting this call via webcast.
Joining us today are Mary Barra, GM's Chair and CEO; along with Paul Jacobson, GM's Executive Vice President and CFO. Susan Sheffield, President and CEO of GM Financial, will also be joining us for the Q&A portion.
On today's call, management will make forward-looking statements about our expectations. These statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include the factors identified in our filings with the SEC. Please review the safe harbor statement on the first page of our presentation as the content of this call will be
3 Medical Device Stocks Giving Investors a Different Healthcare PlayGeneral Motors NYSE: GM raised its full-year 2026 guidance for the second time this year after reporting higher second-quarter revenue, adjusted earnings and free cash flow, with management citing steady North American demand, disciplined pricing, lower warranty costs and reduced electric vehicle losses.
Chair and CEO Mary Barra said the automaker delivered “another solid quarter” and that employees, dealers and suppliers helped the company “win in a dynamic market.” She said customer demand in North America remained steady, including for pickups and SUVs, while pricing was consistent.
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Flying Under the Radar: Lockheed Martin's $2.8B Stealth Setup“The business continues to perform very well,” Barra said. She added that GM’s U.S. full-size pickup market share stood at more than 42% through the first half of the year, more than 10 percentage points above its closest competitor, despite lower-than-target inventories for much of the year.
GM Raises 2026 Outlook After Strong First Half CFO Paul Jacobson said GM generated $92 billion in revenue and $8.2 billion in EBIT-adjusted earnings in the first half of 2026. Adjusted diluted earnings per share rose more than 35% year over year to $7.27, which Jacobson described as the company’s best first-half adjusted EPS performance ever.
MarketBeat Week in Review – 06/08 - 06/12For the second quarter, total company revenue was $48 billion, up $900 million from a year earlier. EBIT-adjusted earnings were $3.9 billion, also up $900 million year over year. Adjusted automotive free cash flow rose $2.2 billion to $5 billion.
GM now expects:
EBIT-adjusted earnings of $14 billion to $16 billion, up from prior guidance of $13.5 billion to $15.5 billion. Adjusted diluted EPS of $12 to $14, up from $11.50 to $13.50. Adjusted automotive free cash flow of $9.5 billion to $11.5 billion, up from $9 billion to $11 billion. Jacobson said the updated guidance reflects strong operating performance, improved pricing and warranty assumptions, and a slightly better commodity outlook. He said the outlook assumes no material escalation in the Middle East and no significant increase in commodity or other inflationary pressures from current levels.
North America Margins Return to Target Range GM North America delivered second-quarter EBIT-adjusted earnings of $3.4 billion, up $1 billion, or more than 40%, from a year earlier. The region’s margin was 8.6%, up 2.5 percentage points from the prior year and within the company’s 8% to 10% target range.
Jacobson said the improvement was broad-based and driven by strong pricing, lower EV losses, and warranty and emissions-related regulatory tailwinds. Those gains were partially offset by commodity inflation, logistics costs, higher DRAM costs and manufacturing costs tied to onshoring production to the U.S.
GM ended the quarter with U.S. dealer inventory of 511,000 units, or about 55 days of supply, which Jacobson said was in the middle of the company’s targeted 50- to 60-day range.
Barra said GM plans to launch the next-generation Chevrolet Silverado and GMC Sierra light-duty pickups in December. She said the trucks will offer improved ride quality, power, durability and towing capability, along with upgraded exterior and interior designs. The company plans to maintain record production volumes year over year while launching the trucks at three assembly plants and launching next-generation V8 engines at three propulsion plants.
EV Restructuring Charges Continue, But Cash Charges Near Completion GM recorded $2.3 billion in incremental EV-related restructuring charges in the second quarter. Jacobson said the charges included $900 million in supplier-related cash charges, $700 million in cash charges to right-size the battery supply chain with joint venture partners, and $700 million in non-cash write-offs for compliance-related and other asset impairments.
Since the second half of 2025, GM has recorded $10.9 billion in EV-related charges, of which about $7.2 billion will have a cash impact. Through the end of the second quarter, the company had paid $4.5 billion of that amount.
Jacobson said GM believes its actions “substantially complete the material cash charges” expected as the company aligns EV capacity and manufacturing footprint with regulatory policy changes, though he noted circumstances could change and some true-ups may occur.
For the full year, GM continues to expect EV losses to improve by $1 billion to $1.5 billion, driven by right-sizing EV capacity and significantly lower volume. The company realized about $500 million of that benefit in the first half and expects EV wholesale volumes to rise slightly in the second half as it resumes building to demand.
Software, Services and New Businesses Highlighted as Growth Areas Barra and Jacobson emphasized GM’s software and services business, including OnStar and Super Cruise, as a margin-accretive growth area. Barra said GM expects 1 million new subscriptions this year, contributing to more than $3 billion in recognized revenue. Jacobson said deferred revenue rose to $6.3 billion, up almost 50% from a year earlier, while second-quarter recognized revenue was $800 million, up 20% year over year.
Barra said GM will make Super Cruise standard on high-end Silverado and Sierra trims and optional on most other trims, estimating 160,000 incremental Super Cruise units from that strategy. During the Q&A session, Barra said GM continues to evaluate pricing and expansion based on customer reception, adding that the company sees “a very high attach rate” after included service periods end. Jacobson said Super Cruise attachment rates are in the 30% to 40% range.
GM also pointed to GM Insurance and GM Defense as emerging businesses. Barra said GM Insurance has expanded from three states in early 2024 to 21 states and is available to more than 60% of GM’s U.S. sales, with a goal of reaching more than 80% in the near term.
Barra said GM Defense expects 2026 revenue to grow to almost $700 million and is targeting positive EBIT results this year. She said the business is targeting a revenue compound annual growth rate of more than 30% over the next several years with double-digit margins.
Share Buybacks and 2027 Outlook GM continued to repurchase shares in the quarter, buying back $2 billion in open-market shares and retiring about 25 million shares. First-half repurchases totaled $2.8 billion, with 36 million shares retired. Jacobson said GM ended the second quarter with a diluted share count of 893 million, down about 8% from the second quarter of 2025 and 35% from the second quarter of 2023. The company had $3.5 billion remaining under its current repurchase authorization.
Looking ahead, Jacobson said GM believes it can grow revenue, margins, EBIT and free cash flow in 2027 based on current conditions. He cited continued improvement in EV profitability, growth in OnStar digital revenue, additional warranty improvements, fixed-cost efficiencies, a full year of the new Silverado and Sierra pickups, and increased full-size SUV supply.
Barra closed the call by saying GM’s vehicle portfolio is strengthening, its onshoring efforts should reduce tariff expense, and its software, services and adjacent businesses are creating additional value opportunities. “We’re confident in 2026, and have said it will be stronger than 2025,” she said. “More importantly, that 2027 and the years beyond will be stronger still.”
About General Motors (NYSE:GM)General Motors Company NYSE: GM is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world's largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM's operations encompass vehicle financing, connected services and advanced mobility initiatives.
GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.
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General Motors (GM - Free Report) reported $48.03 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 1.9%. EPS of $3.57 for the same period compares to $2.53 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $46.56 billion, representing a surprise of +3.15%. The company delivered an EPS surprise of +14.06%, with the consensus EPS estimate being $3.13.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how General Motors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Worldwide - Wholesale Vehicle Sales - Total GMI: 142 thousand versus 165.88 thousand estimated by four analysts on average.Worldwide - Wholesale Vehicle Sales - Total: 990 thousand versus the four-analyst average estimate of 989.9 thousand.Worldwide - Wholesale Vehicle Sales - Total GMNA: 848 thousand versus the four-analyst average estimate of 824.03 thousand.Total net sales and revenue- GM Financial: $4.27 billion compared to the $4.19 billion average estimate based on five analysts. The reported number represents a change of +0.3% year over year.Total net sales and revenue- Total Automotive- GMI: $3.69 billion compared to the $4.41 billion average estimate based on four analysts. The reported number represents a change of +11% year over year.Total net sales and revenue- Total Automotive: $43.76 billion versus the four-analyst average estimate of $42.96 billion. The reported number represents a year-over-year change of +2.1%.Total net sales and revenue- Total Automotive- GMNA: $39.91 billion versus $38.49 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +1.1% change.Total net sales and revenue- Total Automotive- Corporate: $159 million compared to the $64.1 million average estimate based on three analysts. The reported number represents a change of +179% year over year.Total net sales and revenue- Reclassifications/Eliminations: $-3 million compared to the $-9.53 million average estimate based on three analysts. The reported number represents a change of +50% year over year.Operating segments- GMNA: $3.45 billion compared to the $3.13 billion average estimate based on four analysts.Operating segments- Corporate and eliminations: $-298 million versus $-287.83 million estimated by four analysts on average.Operating segments- GM Financial: $605 million compared to the $698.02 million average estimate based on four analysts.View all Key Company Metrics for General Motors here>>>
Shares of General Motors have returned -5.8% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
General Motors GM shares are inching higher on Tuesday morning after the automaker posted a powerhouse Q2 earnings release, outperforming Street expectations across key operational metrics
Revenue came in just over $48 billion – reflecting a 1.9% year-over-year increase – while adjusted earnings per share went up 41.3% versus last year to $3.57 in the second quarter.
Driven by North American truck demand, resilient pricing power, and strict discipline on operating overhead, GM raised its full-year adjusted profit and free cash flow guidance for the second time this year.
Despite headline GAAP net income pressure, the firm’s “core engine” seems to be running at full throttle in an uncertain automotive landscape. Still, General Motors stock is hovering around the same price at which it started 2026.
GM’s standout performance in Q2 was fuelled by its lucrative North American vehicle portfolio.
Segment adjusted EBIT surged 42.7% year-over-year to $3.5 billion – pushing North American margins up to 8.6% - as average vehicle transaction prices remained "rock-solid" around $52,000, as consumer appetite for full-size pickups and SUVs showed remarkable stability.
Pricing gains added $700 million to adjusted EBIT, while internal cost discipline – notably lower warranty expenses – contributed another $300 million.
Crucially, General Motors made tangible progress narrowing its electric vehicle losses, remaining on track to cut EV cash burn by up to $1.5 billion this year.
Buoyed by these tailwinds, management boosted full-year adjusted EBIT guidance to at least $14 billion, triggering a 4% rally in GM shares.
General Motors' quarterly print wasn’t entirely free of weaknesses, though.
In Q2, net income attributable to stockholders tanked 31.1% year-over-year to $1.3 billion.
The primary drag stems from massive accounting write-downs and cash outlays associated with scaling back its electric vehicle footprint, bringing cumulative EV-related retreat charges to $10.9 billion.
Consequently, GM trimmed its full-year GAAP net income target to $8.4 billion–$9.8 billion.
Profitability faced headwinds from rising memory-chip costs, freight logistics inflation, and short-term friction tied to manufacturing onshoring.
Moreover, the company's financial segment earnings before taxes slid 14% year-over-year to $605 million amid broader consumer credit tightening.
For investors, GM stock presents a classic value-and-capital-return thesis.
Trading at “single-digit” earnings multiples, it offers massive upside potential relative to its fundamental cash generation.
Management’s aggressive share buyback plan – shrinking diluted shares outstanding by over 20% across two years – provides a powerful structural tailwind for adjusted EPS growth.
Paired with a newly declared $0.18 quarterly dividend and raised adjusted free cash flow guidance of up to $11.5 billion, General Motors' capital return strategy is top-tier.
Conservative traders should consider accumulating on short-term market dips. While write-downs from the EV pivot create temporary noise, GM’s dominant combustion-engine cash engine makes it a resilient long-term buy.
General Motors (GM) saw its stock rise by 4% following a robust Q2 performance that exceeded expectations and an upward revision of its full-year guidance. Inv
Key Takeaways GM's adjusted EPS rose 41.3% to $3.57, while revenues increased 1.9% to $48.03 billion.Pricing added $700 million to adjusted EBIT, while cost improvements contributed another $300 million.GM raised 2026 adjusted EBIT guidance to $14-$16 billion and EPS guidance to $12-$14. General Motors (GM - Free Report) reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Better-than-expected adjusted EBITDA from North America and International segments led to the outperformance.
Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. Global wholesale volume rose to 990,000 vehicles from 974,000 a year earlier.
Adjusted earnings before interest and taxes increased 29.8% year over year to $3.94 billion. The adjusted EBIT margin expanded to 8.2% from 6.4%, reflecting stronger core operating performance.
Price contributed $700 million to the year-over-year improvement in adjusted EBIT, supported by GM’s product portfolio and incentive discipline. Cost performance added $300 million, primarily due to lower warranty expenses, reduced tariff exposure and emissions-related regulatory savings. Commodity inflation, logistics expenses, higher memory-chip costs and manufacturing costs tied to U.S. production onshoring partly offset the gains.
General Motors' North America Business StrengthensGM North America generated revenues of $39.91 billion, up 1.1% from the prior-year quarter. Wholesale volume was nearly flat at 848,000 units as a 31,000-unit decline in electric vehicle volume was offset by higher internal-combustion-engine vehicle shipments.
The segment’s adjusted EBIT surged 42.7% to $3.45 billion, surpassing the Zacks Consensus Estimate of $3.12 billion. Adjusted EBIT margin improved 250 basis points to 8.6%, aided by pricing, incentive discipline and operating efficiencies. U.S. dealer inventory ended the quarter at 511,000 vehicles, down about 3% year over year and within management’s targeted range of 50-60 days.
GM's International Operations Deliver Mixed ResultsGM International revenues climbed 11% year over year to $3.69 billion, while wholesale volume increased to 142,000 vehicles from 125,000. Strong execution in South America supported the top line, though shipping disruptions reduced wholesale volume in the Middle East.
Adjusted EBIT for the segment declined 6.6% to $190 million, surpassing the consensus mark of $176 million. Meanwhile, GM’s China joint ventures generated equity income of $83 million, up 16.9%. The China business delivered its seventh consecutive profitable quarter, supported by cost efficiencies and product-mix optimization.
General Motors' Finance Arm Faces Cost PressureGM Financial revenues edged up to $4.27 billion from $4.26 billion. Higher net financing revenues and insurance premiums supported results.
However, adjusted earnings before taxes fell 14% to $605 million. Increased lease depreciation, higher costs related to insurance operations and a larger provision for loan losses offset the revenue benefits. GM Financial paid a $250 million dividend to its parent during the quarter, bringing first-half dividends to $900 million.
General Motors' Digital Business Keeps ScalingOnStar ended the quarter with deferred revenues of $6.3 billion, up nearly 50% year over year. Recognized revenues reached $800 million, increasing more than 20%. The company remained on track to add about 1 million subscribers in 2026.
Super Cruise recognized revenues grew roughly 70%, and GM added about 70,000 subscribers during the quarter. The company expects to exceed 850,000 Super Cruise subscribers by year-end, while the attach rate after the three-year prepaid period remained in the 30-40% range.
GM's Cash Flow Supports Shareholder ReturnsAutomotive operating cash flow increased 9% to $5.07 billion. Adjusted automotive free cash flow jumped 78% to $5.03 billion, driven by higher automotive earnings, tariff reimbursement timing and lower capital spending.
Capital expenditures totaled $1.92 billion in the quarter. GM repurchased $2 billion of stock and retired approximately 24.9 million shares. The company also distributed about $200 million in dividends. Automotive cash and marketable securities totaled $19.7 billion at quarter-end, while automotive liquidity was $33.6 billion.
General Motors Raises Its 2026 OutlookGeneral Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
The company also increased its adjusted automotive free cash flow forecast to $9.5-$11.5 billion from $9-$11 billion. GM continues to expect an 8-10% adjusted EBIT margin in North America and capital spending, including battery joint-venture investments, of $10-$12 billion.
Management attributed the improved outlook to strong pricing and warranty performance, along with a slightly better commodity-cost environment. The board also declared a quarterly dividend of 18 cents per share, to be paid out on Sept. 17, 2026, to shareholders of record as of Sept. 4.
GM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Releases From the Auto SpaceAutoliv (ALV - Free Report) reported second-quarter 2026 adjusted earnings of $2.43 per share, which increased 10% year over year and came above the Zacks Consensus Estimate of $2.34 by 3.85%. Net sales rose 3.3% to $2.80 billion, topping the consensus estimate of $2.76 billion by 1.45%. Autoliv maintained its 2026 guidance for roughly flat organic sales, an adjusted operating margin of 10.5-11% and operating cash flow of around $1.2 billion. Autoliv’s capital expenditure, net, is expected to remain below 5% of sales.
Genuine Parts (GPC - Free Report) reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended the June quarter with $2.3 billion of liquidity, including $559 million in cash.
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GM said it delivered fewer EVs to dealerships in the last quarter. Bloomberg/Getty Images The price tag for General Motors' EV reset has ballooned to nearly $11 billion.
During the automaker's Tuesday earnings update, executives said GM recorded a nearly $2.3 billion EV-related charge in the most recent quarter. That brings the automaker's total related costs to $10.9 billion since the second half of 2025 as it slows its EV build-out and builds more gas-powered cars. The billions in write-downs are tied to cutting battery capacity and to reworking factories for gas engine production.
US demand for EVs has fallen since the expiration of the $7,500 federal EV tax credit in September, and legacy automakers have responded with billion-dollar write-downs on their EV development plans. Jeep's parent company, Stellantis, announced a $26 billion charge in February, Ford recorded a $19.5 billion charge in December, and Volkswagen wrote off $3.5 billion in September.
On Tuesday, GM said its most recent write-down has now "substantially" completed the major cash costs it expects from the EV reset.
For General Motors — which builds nine EV nameplates, the largest lineup of any US automaker — the billion-dollar cutbacks starkly contrast with CEO Mary Barra's once lofty EV expectations. In 2021, she predicted the company would sell more electric vehicles than Tesla by 2025.
That didn't happen. Last year, GM sold just over 150,000 EVs while Tesla delivered nearly 590,000.
Instead, GM's gas-powered trucks and SUVs remain its main profit engine — and that is changing the vehicles it sends to dealerships.
During the second quarter, GM shipped 31,000 fewer EVs to dealerships in North America than it did a year earlier. At the same time, it shipped 30,000 more gas-powered vehicles.
The shift is also reaching GM's top-end brand, Cadillac, which calls itself America's best-selling luxury EV maker — it's developing new internal combustion engine, or ICE, cars.
"Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE vehicles," Barra said during the Tuesday earnings call.
GM's stock price jumped more than 3% after the bell.
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Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41.
General Motors (NYSE:GM | GM Price Prediction) delivered its fifth straight earnings beat on Tuesday, July 21, and CFO Paul Jacobson used a CNBC interview this morning to frame the results as validation of a multi-year discipline strategy rather than a one-off surprise.
Adjusted EPS came in at $3.57 against estimates of $3.20, while revenue of $48 billion topped the $47 billion consensus. Management raised full-year adjusted EPS guidance to $12 to $14 per share, up from $11.50 to $13.50, the second guidance lift this year.
Shares responded, trading up 5.24% intraday to $79.82 after the report. The stock is still down 1.94% year to date but has gained 49.86% over the trailing 12 months.
GM’s First-Half Earnings Beat 6 of Its Last 10 Full Years CFO Jacobson pointed to the depth of the first-half performance. “Our first-half earnings per share is 25% higher than the first half at any time in our history. And actually more than six out of the last ten full years we’ve already recorded in the first six months,” he said on CNBC.
Lower Incentives Help GM Deliver Its Fifth Straight Beat He credited operational discipline for the recent streak of earnings beats. “Our inventory discipline, our incentive discipline, which has been below the industry average for more than three years, has really led to these consistent results,” Jacobson said. GM incentives currently run at 4.7% of MSRP versus a 6.3% industry average, a spread that flows straight to margin. GM North America posted adjusted EBIT of $3.45 billion at an 8.6% margin, up 2.5 percentage points year over year, on 990,000 wholesale units.
Consumers Keep Buying GM Trucks Despite Recessionary Sentiment On demand, Jacobson said, “Our consumer has been very resilient. We’ve got a very broad portfolio, probably the best portfolio we’ve ever had in our history. And we can meet customers at all price points.” Full-size SUVs and the truck-and-SUV mix drove the North American results.
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This message runs counter to the recessionary sentiment that some macro signals are currently showing. University of Michigan consumer sentiment printed 44.8 in May 2026, a 12-month low and well into what the index defines as recessionary territory. Yet BEA data shows motor vehicle personal consumption held at $759.5 billion (SAAR) in May 2026, consistent with the buying behavior Jacobson described.
GM Expects Up to $3.5 Billion in Tariff Costs GM is guiding to a $2.5-$3.5 billion full-year tariff impact. Jacobson framed the situation as manageable: “The tariff dynamic remains somewhat fluid… the new tariffs that were announced don’t affect autos under 232. We expect a minimal impact from that. But we’re optimistic that the administration can come to a resolution and get final resolution on USMCA or bilateral deals with Mexico and Canada.”
GM Has Retired 35% of Its Shares and Still Trades Below 6x Earnings GM repurchased nearly $3 billion of stock in the first half of 2026 and has now retired over 35% of fully diluted shares since 2023. The board also declared a $0.18 quarterly dividend payable September 17, 2026.
CFO Jacobson clearly made the case for GM being a value play: the stock trades at less than six times 2026 anticipated earnings, while management targets margin expansion toward 8-10%. Adjusted automotive free cash flow of $5.03 billion in Q2, up 78.0% year over year, supports that framing.
What to Watch Next GM’s fifth straight earnings beat reflects stronger margins, disciplined incentives, resilient truck and SUV demand, and aggressive share repurchases. With management raising guidance for the second time this year, GM appears positioned to grow earnings despite billions of dollars in expected tariff costs and ongoing EV restructuring charges. The next test is whether North American margins and pricing remain strong through the second half of 2026.
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General Motors CFO Paul Jacobson joins 'Squawk Box' to discuss the company's quarterly earnings results, state of the consumer, impact of tariffs, and more.
HomeIndustriesAutomobilesEarnings ResultsEarnings ResultsGM beat earnings expectations, excluding a $1.9 billion EV-related cash charge, and raised its full-year outlookJuly 21, 2026, 8:21 a.m. ET
Shares of General Motors rose in early Tuesday trading after the automobile maker beat second-quarter earnings expectations and raised its full-year outlook, snapping a four-quarter streak of revenue declines.
CEO Mary Barra wrote in a shareholder letter that “customer demand in North America remains strong,” even as deliveries and market share continued to decline, and as sales incentives remained below the industry average.
General Motors CFO Paul Jacobson discusses second-quarter earnings that topped estimates and saw the automaker raise its full-year profit forecast by another $500 million. Jacobson also discusses product demand and managing tariff and inflationary pressures on “Bloomberg Surveillance.
General Motors (GM - Free Report) came out with quarterly earnings of $3.57 per share, beating the Zacks Consensus Estimate of $3.13 per share. This compares to earnings of $2.53 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +14.06%. A quarter ago, it was expected that this an automotive manufacturer would post earnings of $2.61 per share when it actually produced earnings of $3.7, delivering a surprise of +41.76%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
General Motors, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $48.03 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.15%. This compares to year-ago revenues of $47.12 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
General Motors shares have lost about 6.8% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for General Motors?While General Motors has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for General Motors was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.19 on $47.61 billion in revenues for the coming quarter and $12.88 on $184.88 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Ford Motor Company (F - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 28.
This company is expected to post quarterly earnings of $0.36 per share in its upcoming report, which represents a year-over-year change of -2.7%. The consensus EPS estimate for the quarter has been revised 3.2% lower over the last 30 days to the current level.
Ford Motor Company's revenues are expected to be $45.66 billion, down 2.7% from the year-ago quarter.
General Motors Company (NYSE:GM) on Tuesday raised its full-year 2026 profit forecast after posting stronger-than-expected second-quarter results, even as one-time charges tied to its electric vehicle realignment weighed on net income.
The Detroit automaker reported adjusted earnings per share of $3.57 for the quarter, up 41% from a year earlier and above analyst estimates of $3.20. Revenue rose 1.9% to $48.03 billion, topping expectations of $47.01 billion.
Adjusted EBIT climbed 30% to $3.94 billion, ahead of the $3.79 billion analysts had forecast, while adjusted automotive free cash flow surged 78% to $5.03 billion.
GAAP net income fell 31% to $1.31 billion, reflecting $2.3 billion in charges related to GM's EV realignment recorded during the quarter. The company has now booked $10.9 billion in EV-related charges since the second half of 2025, including $7.2 billion with a cash impact.
GM raised its full-year adjusted EPS guidance to a range of $12 to $14, up from a prior estimate and above the $12.76 analysts had expected. The company also lifted its adjusted EBIT outlook to $14 billion to $16 billion, from $13.5 billion to $15.5 billion previously, and raised its adjusted automotive free cash flow guidance to $9.5 billion to $11.5 billion, from $9 billion to $11 billion.
GM kept its capital expenditure and battery joint venture spending forecast at $10 billion to $12 billion.
By segment, GM North America posted adjusted EBIT of $3.45 billion, up 43% from a year earlier and above estimates of $3.26 billion. The company's international operations generated adjusted EBIT of $190 million, down 7% year-over-year but ahead of the $144 million analysts had projected.
Vehicle sales rose 1.6% to 990,000 units in the quarter, while adjusted EBIT margin expanded 180 basis points to 8.2%. GM declared a quarterly dividend of $0.18 per share.
The company's full-year guidance assumes $2.5 billion to $3.5 billion in gross tariff costs and $1.5 billion to $2.0 billion in commodity inflation and DRAM-related costs.
GM said it expects 2027 results to improve on 2026 and plans to onshore more production to reduce its exposure to tariffs.
Shares seesawed premarket but gained at the open, up 2.1% just after the bell.
A new, widely followed survey shows that Cadillac is America’s worst luxury car brand. Its sales have been mediocre for years, as they have fallen behind German and Japanese brands. Its parent company, GM (NYSE: GM | GM Price Prediction), wants to revive the brand, but that may be impossible
The American Customer Satisfaction Index tracks dozens of product and service categories. These range from athletic shoes to banks to cell phones. Its most recent study is of cars and is known as the ACSI Automobile Study 2026. Its conclusions are based on 6,699 surveys that were in the field from July 2025 to June 2026.
Its auto research results are broken into two segments. One is mass-market cars, and the other is luxury cars. The luxury brands include Mercedes-Benz, Audi, Lexus, Tesla, BMW, Lincoln, Acura, Infiniti, and Cadillac. Mass-market cars include brands like Ford (NYSE: F), Chrysler, and Toyota.
Both segments look at comfort, driving performance, safety, dependability, exterior and interior appearance, the mobile app, website, technology, driving distance, and trade-in value.
The Automobile Study included nine luxury brands that were rated on a scale of 1 to 100. The average score among these is 78. Cadillac’s score is 67. At the top of the list, Mercedes has a score of 81.
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Cadillac has a number of problems. First among them is sales volume. Last year, it sold 173,615 units, according to AutoWeek, which put it fourth among luxury cars sold in America. It trailed the top three by a very wide margin. In first place, BMW’s sales were 388,897. Lexus sales were 370,260, and Mercedes sales were 343,300. So Cadillac’s annual sales were barely 50% of those of the leaders. Barely trailing Cadillac, Audi has sales of 164,942.
Unlike the market sales leaders, Cadillac has a small selection of models. It has four sedans, the huge Escalade SUV (which also comes in an EV version), four SUVs (which include two EVs), and a performance division with seven models, most of which are existing models with more powerful engines. With the small number of models, it is hard to be competitive with its larger rivals.
Cadillac’s score fell 13 points from 2025 to 2026, which was by far the largest drop among luxury brands. It is a huge setback as it tries to gain on its three much larger rivals.
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DETROIT — General Motors will launch new gas-powered Cadillac vehicles beginning next spring as the automaker continues to shift gears away from all-electric vehicles.
GM CEO Mary Barra said Tuesday that the next-generation Cadillacs will include new versions of the company's CT5 sedan, outdated XT5 midsize SUV and discontinued three-row XT6 SUV.
"Starting next spring and continuing into 2028, we will begin launching the next generation of Cadillac ICE [internal combustion engine] vehicles," Barra said during the company's second quarter earnings call. She said the vehicles will be in addition to Cadillac's current all-electric crossovers and Escalade SUV.
The new product announcements add to GM's pullback in EVs. The automaker had planned for Cadillac to exclusively sell electric vehicles by the end of this decade. The company also has walked back EV plans for other brands and increased gas-powered engine production, including V-8 offerings.
GM has recorded $10.9 billion in EV-related charges since the second half of last year after slower-than-expected electric vehicle adoption as well as U.S. regulatory changes easing emissions standards and eliminating support for EVs.
Barra reiterated that GM's plans include "onshoring significant manufacturing" for the Detroit automaker beginning next year, in part by expanding production of its full-size SUVs to a Michigan plant that was previously slated to produce EVs.
The full-size SUVs — Escalade, Chevy Tahoe and Suburban, and GMC Yukon and Yukon XL — are currently exclusively produced at the company's Arlington Assembly plant in Texas.
Největší americká automobilka General Motors ve druhém čtvrtletí zvýšila provozní zisk meziročně o 30 procent na 3,9 miliardy dolarů (82,5 miliardy Kč) a znovu zlepšila i celoroční výhled. Oznámila to dnes ve své výsledkové zprávě. Výsledku pomohl především prodej ziskových sportovně-užitkových vozů (SUV) a nákladních automobilů. Tržby vzrostly o dvě procenta na 48 miliard dolarů.
Detroitská automobilka výrazně překonala odhady analytiků, kteří podle dat společnosti LSEG očekávali čtvrtletní zisk před započtením úroků a daní 3,2 dolaru na akcii, zatímco firma oznámila zisk 3,57 USD na akcii. Podařilo se jí to navzdory nestabilní ekonomické situaci, kdy se zákazníci ve druhém čtvrtletí potýkali s vyššími cenami pohonných hmot, přetrvávající inflací a pomalejším růstem zaměstnanosti.
Podobně jako v prvním čtvrtletí automobilka zvýšila celoroční výhled zisku opět o 500 milionů dolarů, aktuálně na rozmezí 14 až 16 miliard dolarů. Firma očekává, že půl miliardy dolarů získá zpět za cla zavedená prezidentem Donaldem Trumpem, která v únoru zrušil americký nejvyšší soud.
Generální ředitelka GM Mary Barraová uvedla, že očekává pokračování pozitivního trendu i v příštím roce. "Očekáváme, že tyto trendy budou i nadále posilovat naše výsledky až do roku 2027 a dále, protože disponujeme řadou faktorů podporujících růst marží a celkový růst, přičemž zachováváme kapitálovou disciplínu," napsala Barraová v dopise akcionářům.
, /PRNewswire/ -- General Motors (NYSE: GM) today reported second-quarter 2026 revenue of $48.0 billion, net income attributable to stockholders of $1.3 billion, and EBIT-adjusted of $3.9 billion.
The company is raising its full-year 2026 EBIT-adjusted guidance for the second time this year. The company expects net income attributable to stockholders to be $8.4 billion to $9.8 billion; Automotive operating cash flow to be $15.4 billion to $19.4 billion; and EPS-diluted to be $8.98 to $10.98 based on its updated guidance and the impact of adjustments recorded year to date. These expected financial results do not include the potential impact of future adjustments related to special items.
The table below shows the revised guidance and how it compares to prior guidance.
Updated 2026 guidance
Previous 2026 guidance
EBIT-adjusted
$14.0 billion - $16.0 billion
$13.5 billion - $15.5 billion
Adjusted automotive free cash flow
$9.5 billion - $11.5 billion
$9.0 billion - $11.0 billion
EPS-diluted-adjusted
$12.00 - $14.00
$11.50 - $13.50
GM announced today that its Board of Directors has declared a quarterly cash dividend on the company's outstanding common stock of $0.18 per share, payable September 17, 2026, to holders of the company's common stock at the close of trading on September 4, 2026.
An overview of quarterly results and financial highlights appears below. Visit the GM Investor Relations website to download the company's earnings deck and GM Chair and CEO Mary Barra's Letter to Shareholders.
Conference call for investors and analysts
Mary Barra and GM Chief Financial Officer Paul Jacobson will host a conference call for the investment community at 8:30 a.m. ET today to discuss these results.
Conference call details are as follows:
1-800-857-9821 (U.S.) 1-517-308-9481 (international/caller-paid) Conference call passcode: General Motors An audio replay will be available on the GM Investor Relations website in the Events section. Results Overview
Three Months Ended
($M) except per share amounts
June 30, 2026
June 30, 2025
Change
% Change
Revenue
$ 48,026
$ 47,122
$ 904
1.9 %
Net income (loss) attributable to stockholders
$ 1,305
$ 1,895
$ (590)
(31.1) %
EBIT-adjusted
$ 3,943
$ 3,037
$ 906
29.8 %
Net income margin
2.7 %
4.0 %
(1.3) ppts
(32.5) %
EBIT-adjusted margin
8.2 %
6.4 %
1.8 ppts
28.1 %
Automotive operating cash flow
$ 5,071
$ 4,653
$ 418
9.0 %
Adjusted automotive free cash flow
$ 5,033
$ 2,827
$ 2,206
78.0 %
EPS-diluted
$ 1.41
$ 1.91
$ (0.50)
(26.0) %
EPS-diluted-adjusted
$ 3.57
$ 2.53
$ 1.04
41.3 %
GMNA EBIT-adjusted
$ 3,446
$ 2,415
$ 1,030
42.7 %
GMNA EBIT-adjusted margin
8.6 %
6.1 %
2.5 ppts
41.0 %
GMI EBIT-adjusted
$ 190
$ 204
$ (13)
(6.6) %
China equity income (loss)
$ 83
$ 71
$ 12
16.9 %
GM Financial EBT-adjusted
$ 605
$ 704
$ (99)
(14.0) %
Six Months Ended
($M) except per share amounts
June 30, 2026
June 30, 2025
Change
% Change
Revenue
$ 91,650
$ 91,141
$ 509
0.6 %
Net income (loss) attributable to stockholders
$ 3,932
$ 4,680
$ (747)
(16.0) %
EBIT-adjusted
$ 8,196
$ 6,527
$ 1,669
25.6 %
Net income margin
4.3 %
5.1 %
(0.8) ppts
(15.7) %
EBIT-adjusted margin
8.9 %
7.2 %
1.7 ppts
23.6 %
Automotive operating cash flow
$ 5,604
$ 7,057
$ (1,453)
(20.6) %
Adjusted automotive free cash flow
$ 6,302
$ 3,639
$ 2,663
73.2 %
EPS-diluted
$ 4.25
$ 5.28
$ (1.03)
(19.6) %
EPS-diluted-adjusted
$ 7.27
$ 5.31
$ 1.96
36.9 %
GMNA EBIT-adjusted
$ 7,107
$ 5,702
$ 1,405
24.6 %
GMNA EBIT-adjusted margin
9.3 %
7.4 %
1.9 ppts
25.7 %
GMI EBIT-adjusted
$ 314
$ 234
$ 80
34.4 %
China equity income (loss)(a)
$ 248
$ 116
$ 132
n.m.
GM Financial EBT-adjusted
$ 1,294
$ 1,389
$ (95)
(6.9) %
__________
(a)
n.m. = not meaningful
General Motors (NYSE:GM) is driving the future of transportation, leveraging advanced technology to build safer, smarter, and lower emission cars, trucks, and SUVs. GM's Buick, Cadillac, Chevrolet, and GMC brands offer a broad portfolio of innovative gasoline-powered vehicles and the industry's widest range of EVs, as we move to an all-electric future. Learn more at GM.com.
Cautionary Note on Forward-Looking Statements: This press release and related comments by management may include "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact and represent our current judgment about possible future events. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law.
Guidance Reconciliations
The following table reconciles expected Net income attributable to stockholders to expected EBIT-adjusted (dollars in billions):
Year Ending December 31, 2026
Updated(a)
Previous
Net income attributable to stockholders
$ 8.4-9.8
$ 9.9-11.4
Income tax expense
2.2-2.8
2.6-3.1
Automotive interest (income) expense, net
(0.1)
—
Adjustments
3.5
1.0
EBIT-adjusted
$ 14.0-16.0
$ 13.5-15.5
__________
(a)
Refer to the reconciliation of Net income (loss) attributable to stockholders to EBIT-adjusted and segment profit (loss) for adjustment details. These expected financial results do not include the potential impact of future adjustments related to special items.
The following table reconciles expected EPS-diluted to expected EPS-diluted-adjusted:
Year Ending December 31, 2026
Updated(a)
Previous
Diluted earnings per common share
$ 8.98-10.98
$ 10.62-12.62
Adjustments
3.02
0.88
EPS-diluted-adjusted
$ 12.00-14.00
$ 11.50-13.50
__________
(a)
Refer to the reconciliation of diluted earnings per common share to EPS-diluted-adjusted for adjustment details. These expected financial results do not include the potential impact of future adjustments related to special items.
The following table reconciles expected automotive net cash provided by operating activities to expected adjusted automotive free cash flow (dollars in billions):
Year Ending December 31, 2026
Updated(a)
Previous
Net automotive cash provided by operating activities
$ 15.4-19.4
$ 16.8-20.8
Less: Capital expenditures
10.0-12.0
10.0-12.0
Adjustments
4.1
2.2
Adjusted automotive free cash flow
$ 9.5-11.5
$ 9.0-11.0
__________
(a)
These expected financial results do not include the potential impact of future adjustments related to special items.
General Motors Company and Subsidiaries1
Combining Income Statement Information
(In millions) (Unaudited)
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
Automotive
GM
Financial
Reclassifications
/Eliminations
Combined
Automotive
Cruise
GM
Financial
Reclassifications
/Eliminations
Combined
Net sales and revenue
Automotive
$ 43,762
$ —
$ —
$ 43,762
$ 42,869
$ —
$ —
$ —
$ 42,869
GM Financial
—
4,267
(3)
4,264
—
—
4,255
(2)
4,253
Total net sales and revenue
43,762
4,267
(3)
48,026
42,869
—
4,255
(2)
47,122
Costs and expenses
Automotive and other cost of sales
40,696
—
—
40,696
39,289
—
—
(1)
39,289
GM Financial interest, operating, and
other expenses
—
3,674
(1)
3,674
—
—
3,567
—
3,567
Automotive and other selling, general, and
administrative expense
2,199
—
(2)
2,197
2,141
—
—
(2)
2,139
Total costs and expenses
42,896
3,674
(3)
46,567
41,431
—
3,567
(2)
44,995
Operating income (loss)
867
593
—
1,459
1,438
—
688
—
2,127
Automotive interest expense
151
—
—
151
199
—
—
(1)
198
Interest income and other non-operating
income, net
223
—
—
223
367
—
—
(1)
366
Equity income (loss)
24
13
—
36
64
—
16
—
80
Income (loss) before income taxes
$ 963
$ 605
$ —
$ 1,568
$ 1,671
$ —
$ 704
$ —
$ 2,375
Income tax expense (benefit)
214
481
Net income (loss)
1,354
1,894
Net loss (income) attributable to
noncontrolling interests
(48)
1
Net income (loss) attributable to
stockholders
$ 1,305
$ 1,895
Net income (loss) attributable to
common stockholders
$ 1,287
$ 1,865
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
Automotive
GM
Financial
Reclassifications
/Eliminations
Combined
Automotive
Cruise
GM
Financial
Reclassifications
/Eliminations
Combined
Net sales and revenue
Automotive
$ 83,111
$ —
$ —
$ 83,111
$ 82,729
$ 1
$ —
$ —
$ 82,730
GM Financial
—
8,543
(4)
8,539
—
—
8,419
(7)
8,412
Total net sales and revenue
83,111
8,543
(4)
91,650
82,729
1
8,419
(7)
91,141
Costs and expenses
Automotive and other cost of sales
75,723
—
1
75,724
74,318
163
—
(1)
74,480
GM Financial interest, operating, and
other expenses
—
7,276
(1)
7,275
—
—
7,058
—
7,058
Automotive and other selling, general, and
administrative expense
4,270
—
(3)
4,266
4,016
111
—
(2)
4,124
Total costs and expenses
79,993
7,276
(4)
87,265
78,334
274
7,058
(4)
85,662
Operating income (loss)
3,118
1,267
—
4,385
4,395
(273)
1,361
(4)
5,479
Automotive interest expense
309
—
—
309
351
30
—
(30)
350
Interest income and other non-operating
income, net
530
(1)
—
530
701
2
—
(26)
676
Equity income (loss)
282
27
—
309
114
—
28
—
142
Income (loss) before income taxes
$ 3,621
$ 1,294
$ —
$ 4,915
$ 4,859
$ (301)
$ 1,389
$ —
$ 5,946
Income tax expense (benefit)
856
1,199
Net income (loss)
4,058
4,747
Net loss (income) attributable to
noncontrolling interests
(126)
(68)
Net income (loss) attributable to
stockholders
$ 3,932
$ 4,680
Net income (loss) attributable to common
stockholders
$ 3,901
$ 5,224
________
1
Certain columns and rows may not add due to rounding.
The following table summarizes basic and diluted earnings per share (in millions, except per share amounts):
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Basic earnings per share
Net income (loss) attributable to stockholders
$ 1,305
$ 1,895
$ 3,932
$ 4,680
Adjustments(a)
(18)
(30)
(31)
544
Net income (loss) attributable to common stockholders
$ 1,287
$ 1,865
$ 3,901
$ 5,224
Weighted-average common shares outstanding
896
963
904
976
Basic earnings per common share
$ 1.44
$ 1.94
$ 4.32
$ 5.35
Diluted earnings per share
Net income (loss) attributable to common stockholders –
diluted
$ 1,287
$ 1,865
$ 3,901
$ 5,224
Weighted-average common shares outstanding – diluted
910
976
918
989
Diluted earnings per common share
$ 1.41
$ 1.91
$ 4.25
$ 5.28
Potentially dilutive securities(b)
—
6
—
6
__________
(a)
Includes a $593 million return from the preferred shareholders related to the redemption of Cruise preferred shares from noncontrolling interest holders in the six months ended June 30, 2025.
(b)
Potentially dilutive securities attributable to Performance Stock Units (PSUs) and Restricted Stock Units (RSUs) at June 30, 2026 and outstanding stock options, PSUs, and RSUs at June 30, 2025 were excluded from the computation of diluted earnings per share (EPS) because the securities would have had an antidilutive effect.
General Motors Company and Subsidiaries1
Combining Balance Sheet Information
(In millions, except per share amounts) (Unaudited)
June 30, 2026
December 31, 2025
Automotive
GM
Financial
Reclassifications
/Eliminations
Combined
Automotive
Cruise
GM
Financial
Reclassifications
/Eliminations
Combined
ASSETS
Current Assets
Cash and cash equivalents
$ 15,147
$ 4,987
$ —
$ 20,134
$ 15,062
$ 56
$ 5,826
$ —
$ 20,945
Marketable debt securities
4,503
82
—
4,585
6,685
—
39
—
6,724
Accounts and notes receivable, net(a)
16,001
1,559
(790)
16,770
12,199
76
1,506
(727)
13,054
GM Financial receivables, net(b)
—
45,262
(393)
44,870
—
—
45,661
(395)
45,266
Inventories
15,955
—
(5)
15,950
14,472
—
—
(5)
14,467
Other current assets
2,767
4,929
4
7,700
3,167
9
5,130
6
8,312
Total current assets
54,374
56,818
(1,184)
110,008
51,585
141
58,162
(1,120)
108,767
Non-current Assets
GM Financial receivables, net
—
44,454
—
44,454
—
—
44,384
—
44,384
Equity in net assets of nonconsolidated affiliates
4,485
1,178
—
5,663
4,564
—
1,117
—
5,681
Property, net
53,179
138
—
53,316
51,458
99
126
—
51,683
Goodwill and intangible assets, net
2,954
1,351
—
4,305
3,018
—
1,348
—
4,366
Equipment on operating leases, net
—
32,881
—
32,881
—
—
33,686
—
33,686
Deferred income taxes
24,190
(1,547)
—
22,643
24,446
—
(1,486)
—
22,960
Other assets
7,804
1,668
—
9,472
8,226
47
1,483
—
9,756
Total non-current assets
92,612
80,121
—
172,733
91,712
147
80,658
—
172,517
Total Assets
$ 146,986
$ 136,939
$ (1,184)
$ 282,742
$ 143,297
$ 288
$ 138,820
$ (1,120)
$ 281,284
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable (principally trade)(a)
$ 28,974
$ 657
$ (791)
$ 28,840
$ 24,075
$ 1
$ 491
$ (649)
$ 23,919
Short-term debt and current portion of long-term
debt
Automotive(b)
907
—
(393)
514
1,120
7
—
(471)
656
GM Financial
—
36,498
—
36,498
—
—
35,012
—
35,012
Cruise
—
—
—
—
—
—
—
—
—
Accrued liabilities
26,280
4,701
—
30,982
28,956
54
4,744
—
33,754
Total current liabilities
56,162
41,856
(1,184)
96,834
54,151
63
40,248
(1,120)
93,342
Non-current Liabilities
Long-term debt
Automotive
15,465
—
—
15,465
15,522
70
—
—
15,591
GM Financial
—
75,220
—
75,220
—
—
79,018
—
79,018
Cruise
—
—
—
—
—
—
—
—
—
Postretirement benefits other than pensions
3,939
—
—
3,939
4,025
—
—
—
4,025
Pensions
4,528
13
—
4,541
4,977
—
11
—
4,988
Other liabilities
19,541
3,560
—
23,101
17,495
281
3,375
—
21,151
Total non-current liabilities
43,473
78,793
—
122,267
42,019
351
82,404
—
124,775
Total Liabilities
99,635
120,650
(1,184)
219,101
96,170
414
122,652
(1,120)
218,116
Equity
Common stock, $0.01 par value
9
—
—
9
9
—
—
—
9
Additional paid-in capital(c)
19,184
1,018
(1,017)
19,185
18,086
1,842
1,077
(1,076)
19,928
Retained earnings
36,466
16,523
1
52,990
37,024
(1,968)
16,467
1
51,524
Accumulated other comprehensive loss
(8,932)
(1,251)
—
(10,183)
(8,966)
—
(1,377)
—
(10,343)
Total stockholders' equity
46,726
16,290
(1,016)
62,000
46,153
(126)
16,167
(1,075)
61,119
Noncontrolling interests(c)
625
—
1,016
1,641
974
—
—
1,075
2,049
Total Equity
47,351
16,290
—
63,641
47,127
(126)
16,167
—
63,168
Total Liabilities and Equity
$ 146,986
$ 136,939
$ (1,184)
$ 282,742
$ 143,297
$ 288
$ 138,820
$ (1,120)
$ 281,284
__________
(a)
Eliminations primarily include GM Financial accounts and notes receivable of $0.6 billion due from Automotive; and Automotive accounts receivable of $0.2 billion due from GM Financial at June 30, 2026; and GM Financial accounts and notes receivable of $0.5 billion due from Automotive; and Automotive accounts receivable of $0.1 billion primarily due from GM Financial at December 31, 2025.
(b)
Eliminations primarily related to GM Financial accounts receivable due from Automotive.
(c)
Primarily reclassification of GM Financial Cumulative Perpetual Preferred Stock, Series A, B, and C. The preferred stock is classified as noncontrolling interests in our consolidated balance sheets.
General Motors Company and Subsidiaries1
Combining Cash Flow Information
(In millions) (Unaudited)
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
Automotive
GM
Financial
Reclassifications
/Eliminations
Combined
Automotive
Cruise
GM
Financial
Reclassifications
/Eliminations
Combined
Cash flows from operating activities
Net income (loss)
$ 3,117
$ 941
$ —
$ 4,058
$ 4,040
$ (302)
$ 1,008
$ —
$ 4,747
Depreciation and impairment of Equipment on
operating leases, net
—
2,647
—
2,647
—
—
2,438
—
2,438
Depreciation, amortization, and impairment
charges on Property, net
3,468
18
—
3,486
3,511
9
17
—
3,537
Foreign currency remeasurement and transaction
(gains) losses
37
(7)
—
30
251
—
11
—
262
Undistributed earnings of nonconsolidated
affiliates, net
120
(27)
—
93
611
—
(28)
—
583
Pension contributions and OPEB payments
(431)
(1)
—
(432)
(308)
—
(1)
—
(309)
Pension and OPEB (income) expense, net
21
1
—
22
31
—
1
—
32
Provision (benefit) for deferred taxes
209
79
—
289
(3)
—
208
—
205
Change in other operating assets and
liabilities(a)(c)
(937)
(70)
117
(891)
(1,077)
(432)
410
2,573
1,473
Net cash provided by (used in) operating
activities
Principal collections and recoveries on finance
receivables(a)(b)
—
18,725
(1,011)
17,713
—
—
20,902
(3,616)
17,286
Purchases of leased vehicles
—
(6,591)
—
(6,591)
—
—
(8,591)
—
(8,591)
Proceeds from termination of leased vehicles
—
5,549
—
5,549
—
—
5,326
—
5,326
Other investing activities(b)
(103)
—
6
(97)
(3,320)
—
—
898
(2,422)
Net cash provided by (used in) investing
activities
(1,352)
(1,117)
(1,014)
(3,483)
(6,790)
(2)
(1,642)
(2,724)
(11,158)
Cash flows from financing activities
Net increase (decrease) in short-term debt
1
(18)
—
(16)
(13)
—
41
—
29
Proceeds from issuance of debt (original
maturities greater than three months)(b)
124
23,226
—
23,350
2,018
499
28,650
(499)
30,668
Payments on debt (original maturities
greater than three months)
(300)
(25,392)
(3)
(25,696)
(571)
(3)
(26,722)
(20)
(27,316)
Payment to purchase common stock
(2,800)
—
—
(2,800)
(2,012)
—
—
—
(2,012)
Issuance (redemption) of subsidiary stock(b)
—
—
—
—
—
—
—
(29)
(29)
Dividends paid(c)
(771)
(959)
900
(831)
(260)
—
(759)
700
(319)
Other financing activities
(379)
(73)
—
(452)
(227)
—
(95)
—
(322)
Net cash provided by (used in) financing
activities
(4,125)
(3,217)
897
(6,445)
(1,064)
496
1,115
152
699
Effect of exchange rate changes on cash, cash
equivalents, and restricted cash
(96)
13
—
(83)
261
1
64
—
327
Net increase (decrease) in cash, cash
equivalents, and restricted cash
31
(738)
—
(708)
(536)
(230)
3,602
—
2,836
Cash, cash equivalents, and restricted cash at
beginning of period
15,241
9,043
—
24,284
14,561
322
8,081
—
22,964
Cash, cash equivalents, and restricted cash at
end of period
$ 15,271
$ 8,305
$ —
$ 23,576
$ 14,025
$ 92
$ 11,683
$ —
$ 25,800
__________
(a)
Includes eliminations of $1.0 billion and $3.3 billion in the six months ended June 30, 2026 and 2025 primarily driven by purchases/collections of wholesale finance receivables resulting from vehicles sold by GM to dealers that have arranged their inventory floor plan financing through GM Financial.
(b)
Eliminations include intercompany funding activity from Automotive and GM Financial to Cruise in the six months ended June 30, 2025.
(c)
Eliminations include dividends issued by GM Financial to Automotive in the six months ended June 30, 2026 and 2025.
Note: Certain intercompany transactions that are eliminated in consolidation are presented on a net basis.
The following tables summarize key financial information (dollars in millions):
GMNA
GMI
Corporate
Eliminations
Total
Automotive
Cruise
GM
Financial
Reclassifications/
Eliminations
Total
Three Months Ended June 30, 2026
Net sales and revenue
$ 39,912
$ 3,691
$ 159
$ —
$ 43,762
$ —
$ 4,267
$ (3)
$ 48,026
Expenditures for property
$ 1,834
$ 61
$ 30
$ —
$ 1,924
$ —
$ 18
$ —
$ 1,942
Depreciation and amortization
$ 1,649
$ 122
$ 6
$ —
$ 1,777
$ —
$ 1,325
$ —
$ 3,102
Impairment charges
$ 1
$ —
$ —
$ —
$ 1
$ —
$ —
$ —
$ 1
Equity income (loss)(a)(b)(c)
$ (383)
$ 82
$ (37)
$ —
$ (337)
$ —
$ 13
$ —
$ (324)
GMNA
GMI
Corporate
Eliminations
Total
Automotive
Cruise
GM
Financial
Reclassifications/
Eliminations
Total
Three Months Ended June 30, 2025
Net sales and revenue
$ 39,486
$ 3,326
$ 57
$ —
$ 42,869
$ —
$ 4,255
$ (2)
$ 47,122
Expenditures for property
$ 2,014
$ 89
$ 28
$ —
$ 2,131
$ —
$ 6
$ —
$ 2,137
Depreciation and amortization
$ 1,642
$ 131
$ 9
$ —
$ 1,782
$ —
$ 1,243
$ —
$ 3,026
Impairment charges
$ —
$ 18
$ —
$ —
$ 18
$ —
$ —
$ —
$ 18
Equity income (loss)(a)(b)
$ 12
$ 77
$ (14)
$ —
$ 75
$ —
$ 16
$ —
$ 91
GMNA
GMI
Corporate
Eliminations
Total
Automotive
Cruise
GM
Financial
Reclassifications/
Eliminations
Total
Six Months Ended June 30, 2026
Net sales and revenue
$ 76,312
$ 6,550
$ 249
$ —
$ 83,111
$ —
$ 8,543
$ (4)
$ 91,650
Expenditures for property
$ 3,260
$ 113
$ 51
$ —
$ 3,425
$ —
$ 29
$ —
$ 3,454
Depreciation and amortization
$ 3,190
$ 241
$ 11
$ —
$ 3,442
$ —
$ 2,665
$ —
$ 6,107
Impairment charges
$ 26
$ —
$ —
$ —
$ 26
$ —
$ —
$ —
$ 26
Equity income (loss)(a)(b)(c)
$ (247)
$ 243
$ (82)
$ —
$ (85)
$ —
$ 27
$ —
$ (58)
GMNA
GMI
Corporate
Eliminations
Total
Automotive
Cruise
GM
Financial
Reclassifications/
Eliminations
Total
Six Months Ended June 30, 2025
Net sales and revenue
$ 76,873
$ 5,753
$ 103
$ —
$ 82,729
$ 1
$ 8,419
$ (7)
$ 91,141
Expenditures for property
$ 3,719
$ 182
$ 39
$ —
$ 3,940
$ 2
$ 10
$ —
$ 3,953
Depreciation and amortization
$ 3,230
$ 233
$ 36
$ —
$ 3,499
$ 5
$ 2,456
$ —
$ 5,959
Impairment charges
$ —
$ 18
$ —
$ —
$ 18
$ —
$ —
$ —
$ 18
Equity income (loss)(a)(b)
$ 255
$ 125
$ (14)
$ —
$ 366
$ —
$ 28
$ —
$ 394
__________
(a)
Includes Automotive China joint ventures (Automotive China JVs) equity income (loss) of $83 million and $248 million in the three and six months ended June 30, 2026 and $71 million and $116 million in the three and six months ended June 30, 2025.
(b)
Equity income (loss) related to Ultium Cells Holdings LLC, an equally owned joint venture with LG Energy Solution, is presented in Automotive and other cost of sales as this entity has historically been integral to the operations of our business by providing battery cells for our electric vehicles (EVs). Equity income (loss) related to Ultium Cell Holdings LLC was insignificant in the three and six months ended June 30, 2026 and insignificant and $252 million in the three and six months ended June 30, 2025.
(c)
Equity income (loss) in GMNA includes impacts of our portion of impairment charges for EV strategic realignment.
General Motors Company and Subsidiaries
Supplemental Material1
(Unaudited)
General Motors Company (GM) uses both generally accepted accounting principles (GAAP) and non-GAAP financial measures for operational and financial decision making, and to assess Company and segment business performance. Our non-GAAP measures include: earnings before interest and taxes (EBIT)-adjusted, presented net of noncontrolling interests; earnings before income taxes (EBT)-adjusted for our General Motors Financial Company, Inc. (GM Financial) segment; earnings per share (EPS)-diluted-adjusted; effective tax rate-adjusted (ETR-adjusted); return on invested capital-adjusted (ROIC-adjusted) and adjusted automotive free cash flow. GM's calculation of these non-GAAP measures may not be comparable to similarly titled measures of other companies due to potential differences between companies in the method of calculation. As a result, the use of these non-GAAP measures has limitations and should not be considered superior to, in isolation from, or as a substitute for, related U.S. GAAP measures.
These non-GAAP measures allow management and investors to view operating trends, perform analytical comparisons, and benchmark performance between periods and among geographic regions to understand operating performance without regard to items we do not consider a component of our core operating performance. Furthermore, these non-GAAP measures allow investors the opportunity to measure and monitor our performance against our externally communicated targets and evaluate the investment decisions being made by management to improve ROIC-adjusted. Management uses these measures in its financial, investment, and operational decision-making processes, for internal reporting, and as part of its forecasting and budgeting processes. Further, our Board of Directors uses certain of these and other measures as key metrics to determine management performance under our performance-based compensation plans. For these reasons, we believe these non-GAAP measures are useful for our investors.
EBIT-adjusted (Most comparable GAAP measure: Net income attributable to stockholders) EBIT-adjusted is presented net of noncontrolling interests and is used by management and can be used by investors to review our consolidated operating results because it excludes automotive interest income, automotive interest expense, and income taxes as well as certain additional adjustments that are not considered part of our core operations. Examples of adjustments to EBIT include, but are not limited to, impairment charges on long-lived assets and other exit costs resulting from strategic shifts in our operations or discrete market and business conditions, and certain costs arising from legal matters. For EBIT-adjusted and our other non-GAAP measures, once we have made an adjustment in the current period for an item, we will also adjust the related non-GAAP measure in any future periods in which there is an impact from the item. Our corresponding measure for our GM Financial segment is EBT-adjusted because interest income and interest expense are an integral part of its financial performance.
EPS-diluted-adjusted (Most comparable GAAP measure: Diluted earnings per common share) EPS-diluted-adjusted is used by management and can be used by investors to review our consolidated diluted EPS results on a consistent basis. EPS-diluted-adjusted is calculated as net income attributable to common stockholders-diluted less adjustments noted above for EBIT-adjusted and certain income tax adjustments divided by weighted-average common shares outstanding-diluted. Examples of income tax adjustments include the establishment or release of significant deferred tax asset valuation allowances.
ETR-adjusted (Most comparable GAAP measure: Effective tax rate) ETR-adjusted is used by management and can be used by investors to review the consolidated effective tax rate for our core operations on a consistent basis. ETR-adjusted is calculated as Income tax expense less the income tax related to the adjustments noted above for EBIT-adjusted and the income tax adjustments noted above for EPS-diluted-adjusted divided by Income before income taxes less adjustments. When we provide an expected adjusted effective tax rate, we cannot provide an expected effective tax rate without unreasonable efforts because the U.S. GAAP measure may include significant adjustments that are difficult to predict.
ROIC-adjusted (Most comparable GAAP measure: Return on equity) ROIC-adjusted is used by management and can be used by investors to review our investment and capital allocation decisions. We define ROIC-adjusted as EBIT-adjusted for the trailing four quarters divided by ROIC-adjusted average net assets, which is the average equity balances adjusted for average automotive debt and interest liabilities, exclusive of finance leases; average automotive net pension and other postretirement benefits (OPEB) liabilities; and average automotive net income tax assets during the same period.
Adjusted automotive free cash flow (Most comparable GAAP measure: Net automotive cash provided by operating activities) Adjusted automotive free cash flow is used by management and can be used by investors to review the liquidity of our automotive operations and to measure and monitor our performance against our capital allocation program and evaluate our automotive liquidity against the substantial cash requirements of our automotive operations. We measure adjusted automotive free cash flow as automotive operating cash flow from operations less capital expenditures adjusted for management actions. Management actions can include voluntary events such as discretionary contributions to employee benefit plans or nonrecurring specific events such as a closure of a facility that are considered special for EBIT-adjusted purposes.
The following table reconciles Net income (loss) attributable to stockholders to EBIT-adjusted and segment profit (loss) (dollars in millions):
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Net income (loss) attributable to stockholders
$ 1,305
$ 1,895
$ 3,932
$ 4,680
Income tax expense (benefit)
214
481
856
1,199
Automotive interest expense
151
198
309
350
Automotive interest income
(183)
(200)
(356)
(391)
Adjustments
EV strategic realignment(a)
2,279
330
3,356
330
China restructuring actions(b)
177
140
99
140
Separation costs(c)
—
87
—
87
Cruise restructuring(d)
—
65
—
65
GMI exit costs(e)
—
33
—
33
Headquarters relocation(f)
—
8
—
34
Total adjustments
2,456
663
3,455
689
EBIT-adjusted
3,943
3,037
8,196
6,527
Operating segments
GM North America (GMNA)
3,446
2,415
7,107
5,702
GM International (GMI)
190
204
314
234
Cruise
—
—
—
(273)
GM Financial(g)
605
704
1,294
1,389
Total operating segments
4,241
3,323
8,714
7,051
Corporate and eliminations(h)
(298)
(286)
(518)
(524)
EBIT-adjusted
$ 3,943
$ 3,037
$ 8,196
$ 6,527
__________
(a)
These adjustments were excluded because they relate to our strategic realignment of our EV capacity and manufacturing footprint, including Ultium's strategic realignment.
(b)
These adjustments were excluded because they relate to restructuring activities associated with our operations in China, including an other-than-temporary impairment and restructuring charges recorded in equity earnings associated with our Automotive China JVs.
(c)
These adjustments were excluded because they relate to employee separation charges.
(d)
These adjustments were excluded because they relate to restructuring charges resulting from the plan to combine the Cruise and GM technical efforts to advance autonomous and assisted driving. The adjustments primarily consist of non-cash restructuring charges, supplier-related charges, and employee separation costs.
(e)
These adjustments were excluded because they primarily relate to the wind down of our manufacturing operations in Columbia and Ecuador.
(f)
These adjustments were excluded because they relate to the GM headquarters relocation, primarily consisting of accelerated depreciation and other relocation expenditures.
(g)
GM Financial amounts represent EBT-adjusted.
(h)
GM's automotive interest income and interest expense, corporate expenditures, legacy costs from the Opel / Vauxhall Business (primarily pension costs), and certain revenues and expenses that are not part of a reportable segment are recorded centrally in Corporate.
The following table reconciles diluted earnings per common share to EPS-diluted-adjusted (dollars in millions, except per share amounts):
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Amount
Per Share
Amount
Per Share
Amount
Per Share
Amount
Per Share
Diluted earnings per common share
$ 1,287
$ 1.41
$ 1,865
$ 1.91
$ 3,901
$ 4.25
$ 5,224
$ 5.28
Adjustments(a)
2,456
2.70
663
0.68
3,455
3.76
689
0.70
Tax effect on adjustments(b)
(496)
(0.54)
(64)
(0.07)
(679)
(0.74)
(70)
(0.07)
Return from preferred shareholders(c)
—
—
—
—
—
—
(593)
(0.60)
EPS-diluted-adjusted
$ 3,247
$ 3.57
$ 2,464
$ 2.53
$ 6,677
$ 7.27
$ 5,250
$ 5.31
__________
(a)
Refer to the reconciliation of Net income (loss) attributable to stockholders to EBIT-adjusted and segment profit (loss) for adjustment details.
(b)
The tax effect of each adjustment is determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
(c)
This adjustment consists of a return from the preferred shareholders related to the redemption of Cruise preferred shares from noncontrolling interest holders in the six months ended June 30, 2025.
The following table reconciles our effective tax rate to ETR-adjusted (dollars in millions):
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Income
before
income
taxes
Income
tax
expense
(benefit)
Effective
tax rate
Income
before
income
taxes
Income
tax
expense
(benefit)
Effective
tax rate
Income
before
income
taxes
Income
tax
expense
(benefit)
Effective
tax rate
Income
before
income
taxes
Income
tax
expense
(benefit)
Effective
tax rate
Effective tax rate
$ 1,568
$ 214
13.7 %
$ 2,375
$ 481
20.2 %
$ 4,915
$ 856
17.4 %
$ 5,946
$ 1,199
20.2 %
Adjustments(a)
2,456
496
663
64
3,455
679
689
70
ETR-adjusted
$ 4,024
$ 710
17.6 %
$ 3,038
$ 545
17.9 %
$ 8,370
$ 1,535
18.3 %
$ 6,635
$ 1,269
19.1 %
__________
(a)
Refer to the reconciliation of Net income (loss) attributable to stockholders to EBIT-adjusted and segment profit (loss) for adjustment details.
These adjustments include Net income attributable to noncontrolling interests where applicable. The tax effect of each adjustment is
determined based on the tax laws and valuation allowance status of the jurisdiction to which the adjustment relates.
We define return on equity (ROE) as Net income (loss) attributable to stockholders for the trailing four quarters divided by average equity for the same period. Management uses average equity to provide comparable amounts in the calculation of ROE. The following table summarizes the calculation of ROE (dollars in billions):
Four Quarters Ended
June 30, 2026
June 30, 2025
Net income attributable to stockholders
$ 1.9
$ 4.8
Average equity(a)
$ 63.0
$ 66.8
ROE
3.1 %
7.1 %
__________
(a)
Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in Net income attributable to stockholders.
The following table summarizes the calculation of ROIC-adjusted (dollars in billions):
Four Quarters Ended
June 30, 2026
June 30, 2025
EBIT-adjusted(a)
$ 14.4
$ 13.2
Average equity(b)
$ 63.0
$ 66.8
Add: Average automotive debt and interest liabilities (excluding finance leases)
16.0
16.2
Add: Average automotive net pension and OPEB liability
7.9
8.9
Less: Average automotive net income tax asset
(24.1)
(22.8)
ROIC-adjusted average net assets
$ 62.8
$ 69.1
ROIC-adjusted
22.9 %
19.0 %
__________
(a)
Refer to the reconciliation of Net income (loss) attributable to stockholders to EBIT-adjusted and segment profit (loss) for adjustment details.
(b)
Includes equity of noncontrolling interests where the corresponding earnings (loss) are included in EBIT-adjusted.
The following table reconciles Net automotive cash provided by operating activities to adjusted automotive free cash flow (dollars in millions):
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Net automotive cash provided by operating activities
$ 5,071
$ 4,653
$ 5,604
$ 7,057
Less: Capital expenditures
(1,924)
(2,131)
(3,425)
(3,940)
Add: EV strategic realignment
1,871
—
4,103
—
Add: Legal Matters
13
—
13
—
Add: GMI exit costs
2
8
6
12
Add: Buick dealer strategy
—
305
—
465
Add: Separation costs
—
86
—
139
Add: China restructuring actions
—
9
—
9
Less: Ultium strategic realignment
—
(103)
—
(103)
Adjusted automotive free cash flow
$ 5,033
$ 2,827
$ 6,302
$ 3,639
General Motors Company and Subsidiaries
Supplemental Material1
(Unaudited)
Vehicle Sales
GM presents both wholesale and total vehicle sales data to assist in the analysis of our revenue and market share. Wholesale vehicle sales data consists of sales to GM's dealers and distributors as well as sales to the U.S. Government, and excludes vehicles sold by our joint ventures. Wholesale vehicle sales data correlates to GM's revenue recognized from the sale of vehicles, which is the largest component of Automotive net sales and revenue. In the six months ended June 30, 2026, 26.8% of GM's wholesale vehicle sales volume was generated outside the U.S. The following table summarizes wholesale vehicle sales by our Automotive operations (vehicles in thousands):
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
GMNA
848
849
1,641
1,676
GMI
142
125
248
209
Total
990
974
1,889
1,885
Total vehicle sales data represents: (1) retail sales (i.e., sales to consumers who purchase new vehicles from dealers or distributors); (2) fleet sales (i.e., sales to large and small businesses, governments, and daily rental car companies); and (3) certain vehicles used by dealers in their business, including but not limited to courtesy transportation vehicles previously used by dealers that were sold to the end consumer. Total vehicle sales data includes all sales by joint ventures on a total vehicle basis, not based on our percentage ownership interest in the joint venture, including vehicle sales of non-GM trademarked vehicles, which are included in the total vehicle sales we report for China. While total vehicle sales data does not correlate directly to the revenue GM recognizes during a particular period, we believe it is indicative of the underlying demand for GM's vehicles. Total vehicle sales data represents management's good faith estimate based on sales reported by our dealers, distributors, and joint ventures; commercially available data sources, such as registration and insurance data; and internal estimates and forecasts when other data is not available.
The following table summarizes industry and GM total vehicle sales and GM's related competitive position by geographic region (vehicles in thousands):
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Industry
GM
Market
Share
Industry
GM
Market
Share
Industry
GM
Market
Share
Industry
GM
Market
Share
North America
United States
4,310
715
16.6 %
4,294
747
17.4 %
8,056
1,341
16.7 %
8,323
1,440
17.3 %
Other
1,059
133
12.6 %
1,052
131
12.5 %
1,987
250
12.6 %
1,992
257
12.9 %
Total North America
5,369
848
15.8 %
5,345
878
16.4 %
10,042
1,592
15.8 %
10,315
1,697
16.5 %
Asia/Pacific, Middle East,
and Africa
China(a)
5,434
357
6.6 %
6,587
448
6.8 %
10,346
706
6.8 %
12,398
890
7.2 %
Other
5,611
106
1.9 %
5,442
118
2.2 %
11,497
213
1.9 %
11,291
220
1.9 %
Total Asia/Pacific, Middle
East, and Africa
11,044
464
4.2 %
12,028
565
4.7 %
21,842
919
4.2 %
23,690
1,110
4.7 %
South America
Brazil
795
79
10.0 %
647
64
9.9 %
1,419
141
9.9 %
1,199
120
10.0 %
Other
464
35
7.6 %
411
31
7.6 %
921
69
7.5 %
811
60
7.4 %
Total South America
1,259
115
9.1 %
1,058
95
9.0 %
2,340
209
8.9 %
2,010
180
8.9 %
Total in GM markets
17,672
1,427
8.1 %
18,432
1,538
8.3 %
34,225
2,720
7.9 %
36,015
2,987
8.3 %
Total Europe
4,591
—
— %
4,372
—
— %
8,972
1
— %
8,609
1
— %
Total Worldwide(b)
22,263
1,427
6.4 %
22,804
1,538
6.7 %
43,197
2,721
6.3 %
44,623
2,988
6.7 %
United States
Cars
720
13
1.8 %
712
15
2.1 %
1,322
25
1.9 %
1,415
32
2.3 %
Trucks
1,163
378
32.5 %
1,223
401
32.8 %
2,170
702
32.4 %
2,277
746
32.8 %
Crossovers
2,428
324
13.4 %
2,359
330
14.0 %
4,564
615
13.5 %
4,631
662
14.3 %
Total United States
4,310
715
16.6 %
4,294
747
17.4 %
8,056
1,341
16.7 %
8,323
1,440
17.3 %
China(a)
SGMS
94
132
210
251
SGMW
263
315
496
639
Total
5,434
357
6.6 %
6,587
447
6.8 %
10,346
706
6.8 %
12,398
890
7.2 %
__________
(a)
Includes sales by the Automotive China JVs: SAIC General Motors Sales Co., Ltd. (SGMS) and SAIC GM Wuling Automobile Co., Ltd. (SGMW).
(b)
Cuba, Iran, North Korea, and Sudan have been subject to broad economic sanctions. Accordingly, these countries are excluded from industry sales data and corresponding calculation of market share.
As discussed above, total vehicle sales and market share data provided in the table above includes fleet vehicles. Certain fleet transactions, particularly sales to daily rental car companies, are generally less profitable than retail sales to end customers. The following table summarizes estimated fleet sales and those sales as a percentage of total vehicle sales (vehicles in thousands):
Three Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
GMNA
207
178
391
350
GMI
111
96
193
164
Total fleet sales
318
274
584
514
Fleet sales as a percentage of total vehicle sales
The GM logo is displayed at the new location of the General Motors Headquarters in Detroit, Michigan, U.S., January 12, 2026. REUTERS/Rebecca Cook Purchase Licensing Rights, opens new tab
CompaniesDETROIT, July 21 (Reuters) - General Motors (GM.N), opens new tab lifted its earnings outlook for the year on Tuesday after posting a 30% increase in second-quarter core profit on the back of profitable SUV and truck sales.
The Detroit automaker said it easily surpassed analysts' profit estimates despite a choppy economic backdrop as consumers grappled with higher gas prices, persistent inflation and slowing job growth during the quarter.
Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here.
Strong profit in its home market of North America, which is also its biggest, was driven by solid pricing.
GM shares fell about 1% in premarket trading.
The company's quarterly earnings before interest and tax were $3.9 billion, against roughly $3 billion a year earlier. On an adjusted basis, it earned a profit per share of $3.57, topping analyst expectations of $3.20, according to LSEG data.
GM raised its 2026 profit outlook by $500 million to a range of $14 billion to $16 billion. In the first quarter, GM increased its outlook by $500 million, the amount it expects to recover from refunds tied to a U.S. Supreme Court ruling that struck down some of the Trump administration's tariffs.
The automaker benefited from stronger sales of gas-powered cars and a sharp drop in sales of electric vehicles, which have been money losers historically. The Trump administration last year eased regulations on vehicle fuel efficiency and emissions, allowing companies to sell more combustion-engine cars.
Despite the stronger than expected quarter, the largest U.S. carmaker by sales said its results will continue to be weighed down by tariff pressures and rising supply costs.
GM held steady an earlier forecast of a $2.5 billion to $3.5 billion hit to its bottom line from tariffs. It said inflation in raw materials, computer chips and logistics should cut earnings by $1.5 billion to $2 billion this year.
The relocation of factory work to the U.S. from overseas, plus higher software expenses, led to between $1 billion and $1.5 billion of additional costs, it said.
In a letter to shareholders, CEO Mary Barra said that the company plans to bring more factory work to the U.S. to reduce its tariff exposure.
Quarterly net income dropped 31% from a year earlier to $1.3 billion, mostly because of about $2.3 billion in costs related to restructuring of electric vehicle factory operations. Revenue of $48 billion was up 2%.
In North America, the profit margin improved to 8.6% from 6.1% a year earlier, despite a 4% decline in quarterly sales.
In China, where GM is restructuring, it reported equity income of $83 million, up from $71 million a year earlier. Its international business, excluding China, posted core profit down 7% at $190 million.
Reporting by Kalea Hall Editing by Alexander Smith and David Goodman
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Kalea Hall reports on the automotive industry, focusing on the Detroit Three automakers, from Detroit. Kalea was previously an automotive reporter at The Detroit News daily newspaper where she covered the auto industry and General Motors for more than five years. She’s been a professional reporter since 2013, when she started at The Vindicator, a daily newspaper in Youngstown, Ohio and her hometown paper. Growing up in an auto plant town inspired Kalea to deeply understand the industry, and helped her report award-winning stories for The Vindicator. At The Detroit News, she worked collaboratively with a team to break news and write comprehensive pieces. Kalea has a bachelor’s degree in journalism from Point Park University in Pittsburgh and a master’s degree in journalism from Michigan State University.
FORT WORTH, Texas--(BUSINESS WIRE)--GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $432 million for the quarter ended June 30, 2026, compared to $510 million for the quarter ended June 30, 2025. Net income for the six months ended June 30, 2026 was $946 million, compared to $1.0 billion for the six months ended June 30, 2025. Retail loan originations were $10.0 billion for the quarter ended June 30, 2026, compared to $8.3 billion for the quarter.
DETROIT — General Motors is set to report its second-quarter earnings before the bell Tuesday.
Here is what Wall Street is expecting, according to average estimates compiled by LSEG:
Earnings per share: $3.20 adjustedRevenue: $47.01 billionThose results would mark a more than 26% increase in adjusted earnings per share and 0.2% decline in revenue compared with a year earlier.
GM's 2025 second-quarter results included $47.12 billion in revenue, net income attributable to stockholders of $1.9 billion, and adjusted earnings before interest and taxes of $3.04 billion.
Aside from earnings and any changes to the automaker's 2026 guidance, investors will be monitoring effects from tariffs, vehicle pricing and commodity costs, including dynamic random access memory, or DRAM, chips.
Read more
Barclays analyst Dan Levy said he expects both GM and its crosstown rival Ford Motor, which reports next week, to post earnings beats for the second quarter "and at least a soft raise."
"[Automakers] are benefiting from strong macro - US [seasonally adjusted annual rate] outperformed in 1H, while pricing has remained steady. Moreover, both Ford and GM have embedded conservatism in their guides," he said in a July 8 investor note.
GM raised its 2026 adjusted earnings guidance in April to reflect a $500 million tariff rebate to between $13.5 billion and $15.5 billion, or $11.50 to $13.50 a share, up $500 million, or 50 cents per share, from its previous expectations.
Trump’s latest trade offensive has placed North America’s best-known manufacturers and consumer brands under scrutiny, with integrated US-Canadian supply chains facing a cost shock.
The White House imposed additional 50% duties on specified Canadian imports under three proclamations responding to disputes over motor vehicles, alcoholic beverages and dairy.
The covered tariff lines include products such as wine, cement and hockey sticks.
The duties apply to listed goods regardless of whether they qualify for preferential treatment under the USMCA and are scheduled to take effect 30 days after the July 20 announcement.
Energy, potash, products already subject to Section 232 tariffs and certain other goods, including some critical minerals, are excluded.
The question is which companies can shift production or pass on costs before margins weaken.
General Motors carries the highest-profile exposure because its manufacturing system spans both countries.
The company has invested C$3.3 billion in Canada since 2020, including C$1.5 billion in Oshawa, where it builds trucks and stamped components.
That footprint creates pressure points. Canadian-made vehicles or parts could become more expensive in the US, while components that cross the border during assembly may face disruption.
RBC Capital maintained an Outperform rating on July 13 and trimmed its price target to $94 from $95.
The call preceded the tariff announcement and implied substantial upside from Monday’s $75.80 close.
GM’s results will test whether truck pricing, cost controls and production flexibility can absorb the Canada-related shock without forcing weaker guidance.
Magna International may be the clearest supply-chain casualty because it supplies body structures, powertrains, electronics, seating and systems to multiple automakers.
A slowdown at several customers could hurt volumes.
Scotiabank maintained Sector Outperform on Monday and lifted its target to $74 from $72, according to MarketBeat.
RBC set a $66 target with a Sector Perform rating, while UBS carried a Neutral rating and $64 target.
The tariffs challenge that optimism. Magna may seek reimbursement from customers, but automakers could pressure suppliers to absorb some cost.
Lower production would create another hit through lower utilisation.
The issue is whether Magna has contractual protection and bargaining power to defend margins across its cross-border network.
Molson Coors has consumer exposure on both sides of the border, leaving it vulnerable to duties on Canadian-made beverages entering the US and retaliation against American alcohol sold in Canada.
The White House said all but two Canadian provinces and territories had halted sales of US alcoholic drinks.
Canadian imports of US alcohol fell about 81% in the year to February 2026.
UBS cut its Molson Coors target to $40 from $46 on July 16 while maintaining Neutral. Citi reduced its target to $42 from $47. Both calls came before the escalation.
With the shares pressured by weak beer demand, retaliation could turn a consumption slowdown into a deeper earnings squeeze.
Saputo presents a nuanced case as tariffs could make Canadian dairy products less competitive in the US, yet its manufacturing presence in both countries may allow production to shift domestically.
CIBC analyst Mark Petrie raised his target to C$49 from C$47 and retained an Outperformer rating after Saputo’s June results.
The consensus target stood near C$47.63 against Monday’s C$41.66 close.
Saputo’s US plants could provide an advantage over rivals dependent on Canadian exports, although shifting volume takes time and may involve added costs.
The tariffs create a 30-day negotiation and repricing window before companies report their next quarterly results.
GM and Magna face the clearest manufacturing shock, Molson Coors carries the greatest retaliation risk, and Saputo has the best operational hedge.
The decisive evidence will come from guidance and post-announcement analyst revisions, not pre-tariff ratings alone.
Shares of General Motors (GM) have consolidated since the start of 2026, as Tom White offers a look into the one and three-year charts to show how recent price action compares to historic trends. He also offers an example options trade for General Motors ahead of earnings Tuesday.
General Motors stock has retreated in recent days, falling from its year-to-date high of $87 in February to about $76 today. The pullback could continue in the near term after the stock formed a bearish double-top pattern ahead of its second-quarter earnings report.
GM stock will be in the spotlight this week as it releases its financial results. These numbers come after the company published a soft deliveries report. It sold 714,896 vehicles in the second quarter, down by 4% from the same period last year.
GM blamed the decline on its decision to deprioritize electric vehicles. It also discontinued some vehicles, including the Chevrolet Blazer and Cadillac XT4.
Despite the decline, GM maintained the number one market share in the US. It was also the number 2 company in full-size pickup and large SUV sales. Key brands like GMC, Chevrolet, and Cadillac did relatively well.
READ MORE: General Motors posts earnings beat, issues upbeat guidance for 2026
Yahoo Finance data shows that analysts expect its Q2 revenue to come in at $47.09 billion, down modestly from the $47.12 billion it made in the same period last year. For the third quarter, analysts expect that revenue will drop by 0.44% to $48.38 billion.
On the positive side, analysts are optimistic that GM will return to growth in the next financial year. Also, while its revenue will remain under pressure, analysts believe that its profitability will do well, helped by higher vehicle prices. A recent report by KBB noted that new car prices rose slightly, with the average new car selling for $49,758.
Another positive is that GM's valuation already reflects many of its growth challenges, including tariffs, rising input costs, and slowing earnings momentum.
The stock trades at a forward price-to-earnings ratio of just 5.95, well below the S&P 500 Index's average multiple of about 20, suggesting much of the pessimism is already priced in.
By comparison, Ford trades at a forward P/E of 8.68, while Stellantis has a multiple of 7.13, making GM one of the cheapest major automakers despite its strong profitability and cash generation.
Therefore, GM could choose to accelerate its share repurchase program. The company still has $5.5 billion remaining under its existing buyback authorization and may take advantage of its depressed valuation to retire additional shares, further boosting earnings per share and shareholder returns.
Analysts have mixed views about GM stock. RBC’s Tom Narayan lowered his target to $94 from $95, while maintaining an outperform rating. JPMorgan’s Ryan Brinkman hiked his target from $98 to $110, while Citigroup’s Michael Ward boosted from $108 to $131.
GM stock chart | Source: TradingView
The daily chart suggests that the GM stock may drop further in the coming weeks. It has already dropped below the 23.6% Fibonacci Retracement level of $77. Moving below that level may suggest that the stock has more downside to go.
The stock has also formed a bearish flag pattern, which is made up of a vertical line and an ascending channel. It has also dropped below the 50-day Exponential Moving Average (EMA), a sign that bears have largely prevailed for now.
Therefore, the stock will likely have a bearish breakout after releasing its earnings on Tuesday. If this happens, the next target to watch will be the 38.2% Fibonacci Retracement level of $70.
Here are the earnings estimates, analyst ratings and key items to watch.
General Motors Q2 Earnings EstimatesAnalysts expect General Motors to report second-quarter revenue of $46.81 billion, down from $47.12 billion in last year’s second quarter, according to data from Benzinga Pro.
The company has missed analyst estimates for revenue in two straight quarters, while beating estimates in eight of the last 10 quarters overall.
Analysts expect General Motors to report second-quarter earnings per share of $3.15, up from $2.53 in last year’s second quarter.
The company has beaten analyst estimates for earnings per share in 15 straight quarters.
General Motors Analyst EstimatesHere are the most recent analyst estimates for General Motors and their price targets:
RBC Capital: Maintained Outperform rating, lowered price target from $95 to $94 JPMorgan: Maintained Overweight rating, raised price target from $98 to $110 Wells Fargo: Maintained Underweight rating, raised price target from $59 to $60 Key Items to WatchGeneral Motors previously reported second-quarter delivery figures. The company’s 714,846 deliveries in the United States ranked first for the region, but were down 4% year-over-year.
The company saw strong pickup and SUV sales, while electric vehicle sales were weaker than past years. Some vehicle models and segments saw record quarterly performance, including brands under Chevrolet, GMC and Buick.
The strength in the quarter for SUVs and pickups could help overall financial figures.
Investors and analysts will want to hear more about international deliveries and electric vehicle sales.
The company, like other legacy automakers, has put an emphasis on producing less EVs, and focusing on low-cost, high demand options.
With Ford currently on pause from making new electric vehicles, the quarter was another potential one for GM to gain market share or keep up with others for demand of different types and price points of EVs.
General Motors was named as one of the companies that could see their manufacturing facilities used to help build weapons and the U.S. increase their stockpile amid the ongoing Middle East tension. The company likely won’t comment on this, but it could be interesting to hear what management has to say if asked by an analyst on the conference call.
After first-quarter earnings, the company raised its adjusted eps guidance and adjusted EBIT. Investors and analysts will be closely watching to see if guidance is adjusted once again.
GM Stock Price ActionGeneral Motors stock is up 0.3% to $76.28 on Monday versus a 52-week trading range of $48.87 to $87.62. General Motors stock is down 5.9% year-to-date in 2026, with shares up 43.2% over the last 52 weeks.
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General Motors (GM) is scheduled to report second-quarter results before U.S. markets open on Tuesday, with investors expected to focus on whether demand for it
