GM Q2 Core Profit Jumps 30% on Truck, SUV Strength; Raises 2026 Outlook
GM sits 56% above its 52-week low of $48.87.
Summary
GM delivered a strong Q2, with adjusted EPS of $3.57 beating estimates by $0.37 and EBIT surging 30% to $3.9 billion, driven by robust North American truck and SUV pricing and strong customer demand for pickups and SUVs. The company raised its full-year 2026 profit outlook by $500 million to $14-$16 billion, marking the second guidance hike this year, and now sees 2026 adjusted EPS of $11.50-$13.50, automotive operating cash flow of $15.4-$19.4 billion, and adjusted automotive free cash flow of $9.5-$11.5 billion. Despite a 31% drop in net income to $1.3 billion due to $2.3 billion in EV restructuring costs, the core auto business showed resilience with North American margins expanding to 8.6%. This follows a challenging period that included a supplier strike at Dauch Corp, which threatened pickup production but was resolved in June. The results underscore GM's ability to navigate tariff pressures and rising supply costs while maintaining pricing power in its most profitable segments.
At the time of this announcement, GM was trading at $76.14 on NYSE in the Manufacturing sector, with a market capitalization of approximately $68.3B. The 52-week trading range was $48.87 to $87.62. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.