General Motors announced raised earnings guidance for 2026 following better-than-expected second-quarter results, driven primarily by strong performance in its North American operations. The Detroit automaker increased its full-year adjusted earnings before interest and taxes guidance to between $14 billion and $16 billion, up from a prior range of $13.5 billion to $15.5 billion. Adjusted earnings per share guidance was also raised to between $12 and $14, compared with the previous range of $11.50 to $13.50.
The company attributed the improved outlook to several factors, including consistent vehicle transaction prices that remained steady at $52,000 during the quarter, lower warranty costs, and significant progress in reducing losses from its electric vehicle operations. GM said it expects to narrow EV losses by between $1 billion to $1.5 billion this year when compared with 2025. The company also raised its adjusted automotive free cash flow expectations to between $9.5 billion and $11.5 billion, up from a prior range of $9 billion to $11 billion.
Despite the positive adjustments, GM lowered its expectations for net income attributable to stockholders to between $8.4 billion and $9.8 billion, down from previously provided guidance of between $9.9 billion and $11.4 billion. This marks the second consecutive quarter in which the automaker has lowered net income guidance while raising other financial metrics. In the second quarter specifically, net income attributable to stockholders declined 31.1% to $1.3 billion compared with the prior year, while adjusted earnings climbed approximately 30% to more than $3.9 billion.
GM’s North American segment posted an adjusted earnings before interest and taxes margin of 8.6%, representing a 2.5 percentage point improvement over the prior year. The company noted that disciplined pricing strategies and a competitive portfolio of pickup trucks and SUVs contributed to the results. In addition, GM International operations, including joint ventures in China, returned to profitability.
The company indicated it has substantially completed major charges related to its strategic pullback from electric vehicle production, which has generated $10.9 billion in EV-related charges since the second half of the previous year. Through the second quarter, GM had paid $4.5 billion of an expected $7.2 billion in cash charges tied to this restructuring. GM’s stock closed the day at $79.52 per share, rising 4.9%.
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