General Motors Co. (NYSE:GM) stock rose Tuesday after the automaker reported second-quarter 2026 results that topped Wall Street expectations and raised its full-year adjusted earnings outlook.
General Motors Beats Earnings And Revenue Estimates
Adjusted diluted earnings per share came in at $3.57, beating the analyst consensus estimate of $3.20. Revenue increased 1.9% year over year to $48.03 billion, ahead of estimates of $47.01 billion.
Net income attributable to stockholders fell 31.1% to $1.31 billion, while GAAP diluted earnings per share declined 26% to $1.41. Adjusted EBIT rose 29.8% to $3.94 billion, and the adjusted EBIT margin expanded to 8.2% from 6.4%.
North America Drives General Motors’ Performance
GM North America adjusted EBIT climbed 42.7% to $3.45 billion. The adjusted margin improved to 8.6% from 6.1%, supported by strong demand for pickup trucks and SUVs, disciplined incentives and operating efficiencies.
General Motors said demand for its most profitable vehicles remains strong despite ongoing affordability concerns. CEO Mary Barra said customer demand for the automaker’s full-size pickups and SUVs remains robust, adding that GM is “building everything that we can sell.”
GM remained the top-selling automaker in the U.S. and held 43% of the full-size pickup market. Fleet sales increased 16%, while dealer inventory ended the quarter at about 511,000 vehicles.
GM International adjusted EBIT declined 6.6% to $190 million as shipping disruptions in the Middle East offset stronger results in South America.
China equity income rose 16.9% to $83 million, marking the seventh consecutive profitable quarter for the company’s restructured joint ventures.
Wholesale vehicle volume increased to 990,000 from 974,000 a year earlier. Worldwide deliveries declined 7.2% to 1.43 million vehicles from 1.54 million.
EV Business And Connected Services Continue To Grow
GM remained the No. 2 seller of electric vehicles in the U.S., with an estimated year-to-date market share of about 13%.
The company has recorded $10.9 billion in EV-related charges since the second half of 2025, including $7.2 billion with a cash impact. GM has paid $4.5 billion of those charges.
OnStar deferred revenue increased nearly 50% to $6.3 billion, while recognized revenue rose more than 20% to $800 million. Revenue from Super Cruise advanced about 70%.
Cash Flow Strength Supports Buybacks
Automotive operating cash flow increased 9% to $5.07 billion. Adjusted automotive free cash flow jumped 78% to $5.03 billion.
GM repurchased $2 billion of stock during the quarter, retiring 24.9 million shares. The company ended the quarter with $19.7 billion in automotive cash, $33.6 billion in total automotive liquidity and $16 billion in automotive debt.
General Motors Raises 2026 Outlook
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.
The company expects gross tariff costs of $2.5 billion-$3.5 billion in 2026 and anticipates $1.5 billion-$2 billion in commodity, logistics and DRAM inflation.
GM said the next-generation Chevrolet Silverado LD and GMC Sierra LD pickups will begin launching in December. It also expects improving business trends to support revenue, margins, EBIT and cash flow into 2027 and beyond.
Executives Highlight Defense And EV Progress
Barra said the next-generation Chevrolet Silverado and GMC Sierra pickups will arrive in showrooms in December.
She also said GM Defense revenue is expected to approach $700 million in 2026 and grow at an average annual rate of more than 30% over the next several years.
Chief Financial Officer Paul Jacobson said GM has completed the material cash charges needed to align its EV production capacity. He added that shipping disruptions affected Middle East wholesale volumes, while pricing contributed a $600 million year-over-year benefit during the first half of 2026.
GM Price Action: General Motors shares were up 3.59% at $78.52 at the time of publication on Tuesday, according to Benzinga Pro data.
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