Automaker beats forecasts but shares move lower
General Motors Co. (NYSE:GM) reported stronger-than-expected second-quarter results on Tuesday, surpassing Wall Street forecasts for both earnings and revenue while increasing its financial guidance for the second time this year.
Despite the stronger performance, shares fell 3.3% following the earnings release.
Adjusted earnings per share came in at $3.57, ahead of the consensus estimate of $3.18. Revenue rose 1.9% year over year to $48.0 billion, exceeding analyst expectations of $46.99 billion.
Company lifts full-year outlook
Following the stronger quarter, GM increased several of its key financial targets for fiscal 2026.
The automaker now expects adjusted earnings per share of between $12.00 and $14.00, compared with its previous forecast, with the midpoint of $13.00 above the analyst consensus estimate of $12.79.
GM also raised its adjusted EBIT guidance to a range of $14.0 billion to $16.0 billion from the prior outlook of $13.5 billion to $15.5 billion.
In addition, the company increased its adjusted automotive free cash flow forecast to between $9.5 billion and $11.5 billion, up from its previous range of $9.0 billion to $11.0 billion.
North America drives profitability
Adjusted EBIT for the second quarter increased 29.8% year over year to $3.9 billion, while the adjusted EBIT margin improved to 8.2% from 6.4% in the same quarter of 2025.
Net income attributable to stockholders declined to $1.3 billion from $1.9 billion a year earlier.
GM North America remained the company’s largest earnings contributor, generating adjusted EBIT of $3.4 billion with an 8.6% margin, compared with $2.4 billion and a 6.1% margin in the prior-year period.
GM International recorded adjusted EBIT of $190 million, China equity income totaled $83 million, and GM Financial contributed adjusted earnings before tax of $605 million.
Cash flow strengthens as dividend maintained
Automotive operating cash flow increased 9.0% year over year to $5.1 billion during the quarter.
Adjusted automotive free cash flow climbed 78.0% to $5.0 billion from $2.8 billion in the corresponding quarter last year, reflecting stronger cash generation across the business.
The company’s board also declared a quarterly dividend of $0.18 per share, payable on 17 September 2026 to shareholders of record as of 4 September 2026.
General Motors stock price
