General Motors (GM) Stock Falls Despite Beating Q2 Earnings and Raising Full-Year Guidance

TLDR

• GM reported Q2 adjusted EPS of $3.57, beating the $3.18 analyst consensus
• Revenue came in at $48.0 billion, up 1.9% year-over-year, topping estimates of $46.99 billion
• Adjusted EBIT rose 29.8% to $3.9 billion, with margins expanding to 8.2% from 6.4%
• Full-year adjusted EPS guidance raised to $12.00–$14.00, with a midpoint of $13.00 above the $12.79 consensus
• GM stock fell 3.3% following the results

GM delivered a strong second quarter, beating on both earnings and revenue, and lifted its full-year outlook for the second time this year. The stock dropped 3.3% on the news.

General Motors Company, GM

Adjusted EPS came in at $3.57, ahead of the $3.18 analyst estimate. Revenue hit $48.0 billion, a 1.9% increase from $47.1 billion in the same quarter last year and above the $46.99 billion consensus.

Adjusted EBIT for the quarter reached $3.9 billion, up nearly 30% from $3.0 billion a year earlier. The adjusted EBIT margin improved to 8.2%, compared to 6.4% in Q2 2025.

GENERAL MOTORS $GM Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $48.03B (Est. $47.01B) 🟢; +1.9% YoY
🔹 Adj. EPS: $3.57 (Est. $3.20) 🟢; +41% YoY
🔹 Adj. EBIT: $3.94B (Est. $3.79B) 🟢; +30% YoY
🔹 Adj. Auto FCF: $5.03B; +78% YoY

Raises FY26 Guide:
🔹 Adj. EPS: $12.00-$14.00 (Est.… pic.twitter.com/okcTXDzNpc

— Wall St Engine (@wallstengine) July 21, 2026

GM’s biggest region, North America, was the engine of the beat. The segment posted adjusted EBIT of $3.4 billion at an 8.6% margin, up from $2.4 billion and 6.1% a year ago. Truck and SUV sales drove that performance, with solid pricing holding up despite a 4% decline in quarterly volume.

Net income attributable to stockholders fell to $1.3 billion from $1.9 billion a year earlier. The drop was largely due to roughly $2.3 billion in restructuring costs tied to GM’s EV factory footprint.

Guidance Raised Again

GM raised its full-year 2026 adjusted EPS guidance to $12.00–$14.00, with the $13.00 midpoint sitting above the $12.79 analyst consensus. Adjusted EBIT guidance was lifted to $14.0–$16.0 billion, up from the prior $13.5–$15.5 billion range.

That $500 million increase to the outlook mirrors a similar raise in Q1, which GM attributed to refunds tied to a U.S. Supreme Court ruling that struck down some Trump administration tariffs.

Adjusted automotive free cash flow guidance was increased to $9.5–$11.5 billion from $9.0–$11.0 billion. For the quarter, adjusted free cash flow surged 78% to $5.0 billion from $2.8 billion.

Tariff Pressure Remains

Despite the raised guidance, GM kept its earlier forecast of a $2.5–$3.5 billion tariff hit to its bottom line unchanged. The company also flagged $1.5–$2.0 billion in expected headwinds from higher raw material, chip, and logistics costs this year.

Automotive operating cash flow for the quarter was $5.1 billion, up 9% year-over-year.

GM International posted adjusted EBIT of $190 million, down 7%. China equity income came in at $83 million, up slightly from $71 million a year ago, as the company continues to restructure its operations there.

GM Financial contributed adjusted earnings before tax of $605 million.

The company’s board declared a quarterly dividend of $0.18 per share, payable September 17, 2026, to shareholders of record as of September 4, 2026.

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