DETROIT — General Motors Company on Tuesday raised several key earnings forecasts for 2026 after beating Wall Street expectations in the second quarter as the company’s North American operations continued to drive its results.
The Detroit-based automaker attributed the change in guidance to stable vehicle transaction prices, lower warranty costs and reduced losses on all-electric vehicles as they progress a multibillion-dollar rollback in electric vehicles.
“These results are very much in line with what we’ve been doing for the past several years,” GM Chief Financial Officer Paul Jacobson told CNBC on Tuesday.Squawk Box.” “Our first half earnings per share are 25% higher than any first half in our history.”
Jacobson said GM’s “momentum is palpable,” while calling the company’s stock “a bargain” at about $75 a share, up more than 40% from a year ago. He called the company’s consumer demand “sustainable.”
Here’s how GM performed in the first quarter compared to average estimates compiled by LSEG:
- Earnings per share: $3.57 adjusted vs. $3.20 expected
- income: $48.03 billion versus the expected $47.01 billion
The raised guidance includes full-year adjusted earnings before interest and taxes of $14 billion to $16 billion, or adjusted earnings per share of $12 to $14, compared to previous management $13.5 billion to $15.5 billion, or $11.50 to $13.50 adjusted per share previously. He also raised his expectations for adjusted free cash flow from the auto industry to $9.5 billion to $11.5 billion from $9 billion to $11 billion.
The automaker, however, lowered its expectations for net income attributable to shareholders to $8.4 billion to $9.8 billion, down from a previous forecast of $9.9 billion to $11.4 billion.
It’s the second quarter in a row that GM has cut net income relative to shareholders’ forecasts while raising other forecasts. In April, H.M changed its leadership to reflect the $500 million tariff discount.
The company’s North American operations led GM’s results, which also include increasing revenues from digital services and reducing EV losses by $1 billion to $1.5 billion this year compared to 2025.
“Our adjusted EBIT margin of 8.6% in North America increased 2.5 points year-over-year, and we continue to reduce warranty costs, reduce EV losses and improve operational efficiency. In addition, GM International, including our joint ventures in China, was profitable,” GM CEO and Chairman. Mary Barra said in the letter to shareholders.
Bara also noted flat car prices and a “very attractive lineup” of pickup trucks and SUVs contributed to his results. The automaker said its average vehicle transaction price was $52,000 during the quarter as it remains disciplined with incentives.
On Tuesday, the company said it had “substantially” completed material costs related to its rollback in all-electric vehicleswhich included $10.9 billion in EV-related fees from the second half of last year.
General Motors global headquarters in Detroit, January 12, 2026.
Jeff Kowalski | Bloomberg | Getty Images
On Tuesday, GM said it paid $4.5 billion of an expected $7.2 billion in cash costs related to the discontinuation of electric vehicles in the second quarter.
The company’s second-quarter results included net income attributable to shareholders of $1.3 billion, down 31.1% year-over-year, while adjusted income increased roughly 30% to more than $3.9 billion, or an adjusted profit margin of 8.2%. Its revenue grew by 1.9% compared to last year.
GM Results of the second quarter of 2025 included $47.12 billion in revenue, net income attributable to shareholders of $1.9 billion and adjusted earnings before interest and taxes of $3.04 billion.