General Motors lifted several of its key 2026 financial forecasts on Tuesday after reporting stronger-than-expected second-quarter earnings, with robust North American operations continuing to underpin the automaker's performance.
The company attributed its improved outlook to stable vehicle transaction prices, lower warranty costs and narrowing losses in its electric vehicle business as it completes a multibillion-dollar pullback from EV investments.
GM shares rose 4.9% to close at US$79.52.
For the second quarter, the Detroit-based automaker reported adjusted earnings per share (EPS) of $3.57, comfortably ahead of expectations for $3.19.
Revenue came in at $48.03 billion, exceeding forecasts of $47.01 billion.
Following the results, GM increased its full-year adjusted earnings before interest and tax (EBIT) forecast to between $14 billion and $16 billion, up from its previous guidance of $13.5 billion to $15.5 billion.
The company also lifted its adjusted earnings per share outlook to between $12 and $14, compared with its previous forecast of $11.50 to $13.50.
Adjusted automotive free cash flow guidance was raised to between $9.5 billion and $11.5 billion, up from the prior range of $9 billion to $11 billion.
However, GM lowered its forecast for net income attributable to shareholders to between $8.4 billion and $9.8 billion, compared with its previous guidance of $9.9 billion to $11.4 billion.
North America remained the company's strongest business, while GM also continued to expand revenue from digital services and expects to reduce electric vehicle losses by between $1 billion and $1.5 billion this year compared with 2025.
"Our 8.6% EBIT-adjusted margin in North America was up 2.5 points from a year ago, and we continue to lower our warranty costs, reduce EV losses, and increase operating efficiency. In addition, GM International, inclusive of our China joint ventures, was profitable," GM CEO and Chair Mary Barra said in a letter to shareholders.
Barra also highlighted stable pricing and strong demand for the company's pickup trucks and SUVs.
The automaker said its average vehicle transaction price remained steady at $52,000 during the quarter as it maintained a disciplined approach to incentives.
GM also said it has "substantially" completed the material charges associated with scaling back its all-electric vehicle strategy.
Since the second half of last year, the company has recorded $10.9 billion in EV-related charges.
Through the second quarter, GM has paid $4.5 billion of an expected $7.2 billion in cash charges tied to the restructuring.
The automaker currently has a market capitalisation of approximately $71.7 billion.
