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General Motors reported stronger-than-expected second-quarter results on Tuesday and raised several full-year forecasts. Higher North American profit, lower warranty costs, and smaller EV losses supported the quarter.
Revenue rose 1.9% from the previous year to $48.03 billion. Adjusted earnings reached $3.57 per share, above estimates near $3.20. Adjusted EBIT increased to $3.94 billion from $3.04 billion a year earlier.
GM now expects adjusted EBIT of $14 billion to $16 billion for 2026. The company previously projected $13.5 billion to $15.5 billion. It also raised adjusted earnings guidance to between $12 and $14 per share.
The automaker increased its adjusted automotive free cash flow forecast to $9.5 billion to $11.5 billion. The earlier range stood at $9 billion to $11 billion. Meanwhile, GM lowered expected net income attributable to shareholders to between $8.4 billion and $9.8 billion.
GM based its revised forecast on steady pricing, lower costs, and better EV results. The company expects pricing to rise about 0.5%. It also expects EV losses to improve by $1 billion to $1.5 billion compared with 2025.
Tariff costs remain part of the outlook. GM expects gross tariff costs of $2.5 billion to $3.5 billion. Regulatory benefits could reach $500 million to $700 million, while commodity inflation may total $1.5 billion to $2 billion.
GM’s North American unit posted an 8.6% adjusted EBIT margin. This figure rose 2.5 percentage points from the same period last year. Strong demand for pickups and large SUVs supported the region’s results.
“Our 8.6% EBIT-adjusted margin in North America was up 2.5 points from a year ago,” CEO Mary Barra said. She added that GM continues to lower warranty costs, reduce EV losses, and improve efficiency.
The company kept incentives below the industry level. Incentives averaged 4.7% of the suggested retail price, compared with an industry average of 6.3%. Average transaction prices topped $52,000 during the quarter.
GM also reduced dealer inventory by 3% from a year earlier. Inventory stayed within its target range of 50 to 60 days. Meanwhile, GMC Sierra sales rose 5% to a quarterly record of 95,147 vehicles.
GM sold about 715,000 vehicles in the United States during the quarter. This total fell 4.2% from a year earlier. Even so, the company remained the country’s largest automaker by sales.
The company linked part of the decline to discontinued models, including the Cadillac XT4, Cadillac XT6, and Chevrolet Malibu. A weaker EV market also reduced demand after the federal tax credit expired.
Chevrolet Equinox EV sales fell 61.8%, while Blazer EV sales dropped 68.1%. GMC Hummer EV sales declined 56.8%. GM still held an estimated 13.5% to 14% share of the US EV market, behind Tesla.
GM said it paid $4.5 billion in EV-related cash charges through the second quarter. Total EV-related charges reached $7.2 billion this year. The company has recorded $10.9 billion in EV charges since the second half of 2025.
CFO Paul Jacobson described consumer demand as ‘resilient.’ He said GM’s first-half earnings per share were 25% higher than any previous first-half result. However, high interest rates and vehicle prices continue to pressure affordability.
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