General Motors posted stronger-than-expected second-quarter results on Tuesday and raised several full-year forecasts, supported by higher North American profit, lower warranty costs, and smaller EV losses.
Revenue increased 1.9% year-over-year to $48.03 billion. Adjusted earnings reached $3.57 per share, topping estimates of around $3.20. Adjusted EBIT rose to $3.94 billion from $3.04 billion in the same period last year.
GM Raises Full-Year Earnings Guidance
GM now expects adjusted EBIT of $14 billion to $16 billion for 2026, up from the previous forecast of $13.5 billion to $15.5 billion. The company also lifted its adjusted earnings guidance to between $12 and $14 per share.
The automaker increased its adjusted automotive free cash flow outlook to $9.5 billion–$11.5 billion, compared with the earlier range of $9 billion–$11 billion. Meanwhile, GM lowered its expected net income attributable to shareholders to between $8.4 billion and $9.8 billion.
GM based its revised forecast on steady pricing, lower costs, and better EV results. The company expects pricing to rise about 0.5% and EV losses to improve by $1 billion to $1.5 billion compared with 2025.
Tariff costs remain a factor. GM expects gross tariff costs of $2.5 billion to $3.5 billion, regulatory benefits of $500 million to $700 million, and commodity inflation of $1.5 billion to $2 billion.
North American Business Drives Profit Growth
GM’s North American unit posted an 8.6% adjusted EBIT margin, an increase of 2.5 percentage points from the same period last year. Strong demand for pickups and large SUVs supported regional results.
“Our 8.6% EBIT-adjusted margin in North America was up 2.5 points from a year ago,” said CEO Mary Barra. She added that GM continues to lower warranty costs, reduce EV losses, and improve efficiency.
The company kept incentives below the industry average at 4.7% of the suggested retail price, versus the industry average of 6.3%. Average transaction prices exceeded $52,000 during the quarter. GM also reduced dealer inventory by 3% year-over-year, keeping it within the target range of 50 to 60 days. GMC Sierra sales rose 5% to a quarterly record of 95,147 vehicles.
Vehicle Sales Fall as EV Demand Weakens
GM sold about 715,000 vehicles in the United States during the quarter, a 4.2% decline from a year earlier. The company remained the country’s largest automaker by sales.
GM attributed part of the decline to discontinued models, including the Cadillac XT4, Cadillac XT6, and Chevrolet Malibu. A weaker EV market, following the expiration of the federal tax credit, also reduced demand.
Chevrolet Equinox EV sales fell 61.8%, Blazer EV sales dropped 68.1%, and GMC Hummer EV sales declined 56.8%. Still, GM held an estimated 13.5% to 14% share of the US EV market, trailing only Tesla.
GM reported $4.5 billion in EV-related cash charges through the second quarter, with total EV-related charges reaching $7.2 billion this year. The company has recorded $10.9 billion in EV charges since the second half of 2025.
CFO Paul Jacobson described consumer demand as “resilient” and noted that GM’s first-half earnings per share were 25% higher than any previous first-half result. However, high interest rates and vehicle prices continue to pressure affordability.
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