GM boosts full-year guidance, reports Q2 earnings beat as costs come down - Yahoo Finance

What the report says

Yahoo Finance reported that General Motors shares rose Tuesday after the automaker delivered second-quarter results ahead of Wall Street expectations and lifted its full-year outlook for the second time in 2026. GM now projects adjusted EBIT of $14 billion to $16 billion, adjusted EPS of $12 to $14, and adjusted automotive free cash flow of $9.5 billion to $11.5 billion, each above its previous ranges.

For the quarter, GM reported revenue of $48.03 billion, compared with Bloomberg consensus expectations of $46.61 billion, and adjusted EPS of $3.57 versus estimates of $3.19. Adjusted EBIT was $3.94 billion, above the expected $3.7 billion. The company said its outlook assumes modest pricing gains, lower electric-vehicle losses, regulatory benefits, tariff costs of $2.5 billion to $3.5 billion, and commodity inflation. CFO Paul Jacobson said on the earnings call that second-quarter tariff costs were about $900 million, with similar exposure expected in the next two quarters.

Yahoo Finance said GM’s profit growth came even as U.S. sales declined. The company sold about 715,000 vehicles in the U.S. during the quarter, down 4.2% year over year, while remaining the country’s top-selling automaker. GM attributed much of the decrease to discontinued models and weaker EV demand after the expiration of the federal EV tax credit. Sales of several EV models, including the Chevy Equinox EV, Blazer EV and GMC Hummer EV, fell sharply, though GM said it remained second in EV market share behind Tesla.

The report noted that pickups and larger vehicles helped offset weakness elsewhere. GMC Sierra sales rose 5% to a quarterly record, while the Chevy Traverse and Trailblazer also posted gains. GM said average transaction prices exceeded $52,400, but affordability pressures and tight inventories continued to weigh on some large SUV sales.