GM stock rises after automaker boosts full-year guidance, reports Q2 <a href="https://todaytrendnews7.com/ally-financial-q2-2026-earnings-miss-analyst-estimates/” title=”Ally Financial Q2 2026 earnings miss analyst estimates”>earnings
Pras Subramanian· Senior Reporter
Updated Tue, July 21, 2026 at 9:01 PM GMT+5:30
4 min read
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GM (GM) reported second quarter results before the bell on Tuesday that topped expectations, with the Big Three stalwart continuing to grow profits despite fewer sales.
And for a second time this year, GM raised its guidance. For the full year, GM now expects:
Adjusted EBIT of $14.0 billion-$16.0 billion (prior $13.5 billion-$15.5 billion)
Adjusted EPS of $12.00-$14.00 (prior $11.50-$13.50)
Adjusted automotive free cash flow of $9.5 billion-$11.5 billion (prior $9 billion-$11 billion)
GM stock climbed over 3% in midday trade
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GM reported Q2 revenue of $48.03 vs. $46.61 billion, per Bloomberg consensus, up 1.9% from the $47.1 billion the automaker posted a year ago. GM posted adjusted earnings per share (EPS) of $3.57 vs. $3.19 estimated and adjusted EBIT of $3.94 billion compared to $3.7 billion expected.
GM said its updated guidance made key assumptions, including pricing up around 0.5%, EV losses improving by $1 billion to 1.5 billion, regulatory benefits of $500 million to $700 million, gross tariff costs of $2.5 billion to $3.5 billion, and commodity inflation (including DRAM) of $1.5 billion to $2 billion, among others
GM CFO Paul Jacobson said on the earnings call that tariff costs in Q2 were around $900 million, and the company expects similar exposure in Q3 and Q4
For comparison, GM’s adjusted EBIT in Q2 last year came in at $3 billion — a figure heavily weighed down by tariff costs that are now easing as tariff offsets take hold
“Customer demand in North America remains strong, driven by our very attractive lineup of pickups and SUVs,” CEO Mary Barra added in her letter to shareholders. “Our 8.6% EBIT-adjusted margin in North America was up 2.5 points from a year ago, and we continue to lower our warranty costs, reduce EV losses, and increase operating efficiency.”
GM said incentives as a percentage of MSRP averaged 4.7% in Q2, below the industry average of 6.3%, with dealer inventory down 3% year over year, in the company’s targeted range of 50 to 60 days
In addition to government offsets that are reducing its tariff bill, GM has spent the past year reworking its supply chain, shifting production, and negotiating with suppliers to blunt the tariff hit.
But while tariffs easing will help its bottom line, its vehicle sales have been slipping
GM sold approximately 715,000 vehicles in the US in the second quarter, a 4.2% decline from a year ago, though it held its position as the country’s top-selling automaker.
The company said much of the drop was due to discontinued models like the Cadillac XT4 and XT6 and the Chevrolet Malibu, as well as a sharp electric vehicle pullback following the expiration of the federal EV tax credit, which pulled demand forward into late 2025.
