GM raises 2026 guidance, beats Q2 estimates; stock up ~5%
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- GM raised full-year 2026 guidance for the second time this year — adjusted EBIT to $14.0–$16.0B, adjusted EPS to $12.00–$14.00, and adjusted automotive free cash flow to $9.5–$11.5B.
- GM topped Q2 expectations with $48.03B revenue (vs. $46.61B est.), adjusted EPS of $3.57 (vs. $3.19 est.), and adjusted EBIT of $3.94B (vs. $3.7B est.).
- GM stock closed up 4.89% at $79.51 after the print, climbing more than 3% in midday trade.
- CFO Paul Jacobson put Q2 tariff costs at ~$900M with similar exposure expected in Q3 and Q4, though government offsets are softening the hit; the company has reworked its supply chain and shifted production to blunt the blow.
- GM's US sales fell 4.2% YoY to ~715,000 vehicles, though it held its position as the country's top-selling automaker; CEO Mary Barra cited strong North America demand for pickups and SUVs.
- GM held the No. 2 US EV market share at an estimated 13.5–14% behind Tesla, even as Equinox EV sales fell 61.8%, Blazer EV 68.1%, and Hummer EV 56.8% after the federal EV tax credit expired; the company has paid $4.5B in EV-related charges through Q2.
- GMC Sierra hit a record 95,147 units sold (up 5% YoY), Barra highlighted an 8.6% North America EBIT-adjusted margin (up 2.5 points), and average transaction prices topped $52,400 with incentives at 4.7% of MSRP — below the industry's 6.3%.
Why it matters: GM is extracting more profit per vehicle even as unit sales fall — North America margins expanded 2.5 points and incentives stayed 1.6 points below the industry average — but the EV business has burned through $4.5B in charges this year with triple-digit sales declines, and quarterly tariff exposure of ~$900M makes the raised $14–16B EBIT target dependent on continued government offsets and sustained truck strength.
