GM Raises Annual Forecast After Strong Q2 Earnings Performance

WHO:

Yahoo Finance - General Motors (GM) reported its second-quarter results.

Yahoo Finance - CEO Mary Barra provided insights in her letter to shareholders.

WHAT:

Yahoo Finance - GM's adjusted EBIT in Q2 last year was $3 billion, significantly impacted by tariff costs.

Yahoo Finance - GM's CFO Paul Jacobson stated that tariff costs in Q2 were around $900 million, with similar exposure expected in Q3 and Q4.

Yahoo Finance - GM's incentives as a percentage of MSRP averaged 4.7% in Q2, below the industry average of 6.3%.

Yahoo Finance - GM reported Q2 revenue of $48.03 billion, exceeding the $46.61 billion expected.

Yahoo Finance - Adjusted earnings per share (EPS) were $3.57, surpassing the estimated $3.19.

Yahoo Finance - Adjusted EBIT was $3.94 billion, compared to the expected $3.7 billion.

Yahoo Finance - GM raised its full-year guidance for adjusted EBIT to $14.0 billion-$16.0 billion, up from $13.5 billion-$15.5 billion.

Yahoo Finance - Adjusted EPS guidance was raised to $12.00-$14.00 from $11.50-$13.50.

Yahoo Finance - Adjusted automotive free cash flow guidance increased to $9.5 billion-$11.5 billion from $9 billion-$11 billion.

Yahoo Finance - GM sold approximately 715,000 vehicles in the US in the second quarter, a 4.2% decline from the previous year.

WHERE:

Yahoo Finance - GM is headquartered in Detroit, Michigan.

WHEN:

Yahoo Finance - GM's Q2 results were reported before the bell on a Tuesday.

WHY:

Yahoo Finance - GM's updated guidance includes assumptions of pricing increases of around 0.5%, improved EV losses by $1 billion to $1.5 billion, and regulatory benefits of $500 million to $700 million.

Yahoo Finance - The increase in guidance was based on assumptions including pricing increases, improved EV losses, and regulatory benefits.

Yahoo Finance - The decline in vehicle sales was attributed to discontinued models and a pullback in electric vehicle demand following the expiration of the federal EV tax credit.

HOW:

Yahoo Finance - GM has been reworking its supply chain, shifting production, and negotiating with suppliers to mitigate tariff impacts.

(UPDATED July 21, 2026 19:25 UTC)

General Motors reported an adjusted EBIT of $3 billion in the second quarter last year, heavily influenced by tariff costs that amounted to around $900 million, with similar impacts anticipated in the upcoming quarters. The company's incentives as a percentage of MSRP averaged 4.7%, which is below the industry average of 6.3%. Looking ahead, GM's updated guidance includes expectations for pricing increases of approximately 0.5%, a reduction in electric vehicle losses by $1 billion to $1.5 billion, and regulatory benefits ranging from $500 million to $700 million.

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(UPDATED July 21, 2026 13:29 UTC)

General Motors has reported its second-quarter results, revealing a revenue of $48.03 billion, which exceeded expectations of $46.61 billion. CEO Mary Barra shared insights with shareholders, noting that adjusted earnings per share came in at $3.57, surpassing the estimated $3.19, and the company raised its full-year guidance for adjusted EBIT to between $14.0 billion and $16.0 billion. Despite selling approximately 715,000 vehicles in the US during the quarter, a decline of 4.2% from the previous year, the increase in guidance reflects assumptions about pricing increases and improved electric vehicle losses.