GM Beats Q2, Raises Full-Year Guidance Again
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- GM reported Q2 revenue of $48.03 billion vs. $46.61 billion expected, with adjusted EPS of $3.57 beating the $3.19 estimate and adjusted EBIT of $3.94 billion topping the $3.7 billion consensus
- GM raised full-year guidance for the second time in 2026: adjusted EBIT now $14–16 billion (prior $13.5–15.5B), adjusted EPS $12–14 (prior $11.50–13.50), and adjusted automotive free cash flow $9.5–11.5 billion (prior $9–11B)
- Tariff costs eased as government offsets took hold, with Q2 adjusted EBIT of $3.94 billion climbing sharply from $3 billion a year ago when tariffs weighed on results
- GM sold approximately 715,000 US vehicles in Q2, a 4.2% decline YoY, though it retained its position as the country's top-selling automaker
- GM's EV lineup saw steep declines — Chevy Equinox EV down 61.8%, Blazer EV off 68.1%, GMC Hummer EV sliding 56.8% — partly blamed on the expired federal EV tax credit pulling demand forward into late 2025
- GM paid out $4.5 billion in EV-related charges through Q2 (total including non-cash hitting $7.2 billion), yet still held the No. 2 US EV market share behind Tesla at an estimated 13.5–14%
- Trucks and crossovers cushioned the drop: GMC Sierra sales rose 5% to a record 95,147, Chevy Traverse jumped 19.5%, and average transaction prices topped $52,400 with incentives at just 4.7% of MSRP versus an industry 6.3%
Why it matters: GM is extracting more profit per vehicle despite selling fewer cars — Q2 adjusted EBIT jumped from $3 billion to $3.94 billion as tariff offsets kicked in, and incentives held below industry average at 4.7% of MSRP. Yet $7.2 billion in EV-related charges year-to-date shows the transition cost remains enormous, even as management doubles down on its full-year outlook for a second time.
