Auto giant GM raised several key 2026 earnings forecasts after an impressive Q2 performance, as the company’s North American operations continue to lead its results.
The Detroit automaker explained its revised guidance by pointing to steady vehicle transaction prices, reduced warranty expenses, and decreasing all-electric vehicle losses as it concludes a multibillion-dollar withdrawal from EVs.
GM’s Q2 highlights included:
- Earnings per share: $3.57
- Revenue: $48.03 billion
For the full year, now GM expects:
- Adjusted EBIT of $14.0 billion – $16.0 billion (prior $13.5 billion – $15.5 billion)
- Adjusted EPS of $12.00 – $14.00 (prior $11.50 – $13.50)
- Adjusted automotive free cash flow of $9.5 billion – $11.5 billion (prior $9 billion – $11 billion)
Mary Barra, GM CEO, stated in a letter to shareholders:
“The business continues to perform very well. Customer demand in North America remains strong driven by our very attractive lineup of pickups and SUVs. Pricing is consistent, and we delivered the best quarter and first half ever for new Super Cruise-equipped vehicles.
Our 8.6% EBIT-adjusted margin in North America was up 2.5 points from a year ago, and we continue to lower our warranty costs, reduce EV losses, and increase operating efficiency. In addition, GM International, inclusive of our China joint ventures, was profitable.
We expect these trends will continue to strengthen our performance into 2027 and beyond because we have multiple engines of margin expansion and growth while maintaining our capital discipline.”
- “Our vehicle portfolio continues to get stronger, with the launch of the next-generation Chevrolet Silverado LD and GMC Sierra LD starting in December
- Our software and services ecosystem is expanding
- Our manufacturing and sourcing footprint is becoming more efficient, and we will be onshoring significant production to further reduce our tariff exposure
- And growth businesses like GM Defense and GM Insurance are creating additional avenues for value creation”
GM shares fell 2% following the announcement.
By CEO NA Editorial Staff
