GM Beats Earnings, Raises Guidance Amid Pricing Strength
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- General Motors reported $48.03 billion in revenue and $3.57 adjusted earnings per share in Q2, surpassing analyst estimates of $47.01 billion and $3.20 respectively
- General Motors raised its full-year adjusted EBIT guidance to $14–$16 billion and adjusted EPS to $12–$14, up from prior ranges of $13.5–$15.5 billion and $11.50–$13.50
- General Motors increased its adjusted automotive free cash flow forecast to $9.5–$11.5 billion, citing improved efficiency and reduced EV losses of $1–$1.5 billion year-on-year
- Mary Barra stated GM’s North American EBIT-adjusted margin reached 8.6%, a 2.5-point increase from last year, driven by disciplined pricing and a strong truck and SUV lineup
- Paul Jacobson said GM’s first-half EPS was 25% higher than any prior first half in company history and called the stock a 'bargain' at around $75 per share
- General Motors lowered its net income attributable to stockholders forecast to $8.4–$9.8 billion, marking the second consecutive quarter of downward revisions despite other raised guidance
Why it matters: GM is gaining investor confidence by improving margins and cash flow even as it scales back EV investments, showing that near-term profitability is being prioritized over long-term bets—shifting the risk to future competitiveness in electrification while delivering tangible gains now.
