GM Raises EPS and FCF Guidance Despite Cutting Net Income View
GM sits 61% above its 52-week low of $48.87.
Summary
GM delivered a strong Q2 beat with adjusted EPS of $3.57 vs. $3.20 expected and revenue of $48.03B vs. $47.01B consensus. The company raised its full-year adjusted EPS guidance to $12-$14 from $11.50-$13.50 and automotive free cash flow to $9.5B-$11.5B from $9B-$11B, driven by resilient pricing and a 20% jump in digital services revenue. However, it lowered net income attributable to stockholders to $8.4B-$9.8B from $9.9B-$11.4B, marking the second straight quarter of such a cut, tied to $10.9B in EV-related charges since H2 2025. The mixed guidance—raising operational metrics while trimming bottom-line net income—reflects the ongoing EV pullback but underscores strength in North American truck and SUV sales. This follows the earlier Reuters report on the same earnings but adds granularity on pricing, digital growth, and the net income reduction. The stock has already risen 43% over the past year, and traders will weigh the raised cash flow outlook against the net income downgrade.
At the time of this announcement, GM was trading at $78.67 on NYSE in the Manufacturing sector, with a market capitalization of approximately $70.9B. 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 8 out of 10. Source: BayStreet.