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General Motors (NYSE: GM) reported second-quarter 2026 results on Tuesday that beat Wall Street expectations across key metrics, powered by expanding North American margins and a meaningful reduction in all-electric vehicle losses. Adjusted earnings per share reached $3.57 against a consensus of $3.19, while revenue of $48.03 billion outpaced the $47.01 billion forecast. GM stock price advanced in pre-market trading, with shares opening at $75.91 after hovering near $75.80 ahead of the release, as the automaker raised its full-year financial targets for the second time in 2026.What Happened
General Motors earnings for the second quarter showed a 30% year-over-year increase in adjusted EBIT to $3.94 billion, ahead of the $3.79 billion consensus, while adjusted automotive free cash flow surged 78% to $5.03 billion. North American margins strengthened materially, with the adjusted EBIT margin in the region climbing to 8.6%, up 2.5 percentage points from a year earlier. Higher transaction prices on full-size trucks and SUVs, reduced warranty costs, and lower tariff exposure each contributed to the improvement.The quarter carried a notable offset. GM recorded an additional $2.3 billion charge tied to its ongoing pullback from all-electric vehicle production, pushing cumulative EV-related write-downs to $10.9 billion since the second half of last year. Net income fell 31% year-over-year to $1.3 billion as a result. Of the $7.2 billion in total anticipated cash outlays connected to the EV restructuring, $4.5 billion had been disbursed by the end of Q2.
- GM reported Q2 adjusted EPS of $3.57, beating the $3.19 consensus estimate by $0.38, with revenue of $48.03B topping the $47.01B forecast.
- EV profitability improved as losses narrowed on pace to shrink $1B–$1.5B year-over-year, a central driver of the quarter's outperformance.
- GM raised its full-year 2026 adjusted EBIT guidance by $500M to $14B–$16B and lifted adjusted EPS outlook to $12–$14.
EV Profitability and the Electric Retreat
EV profitability is the central narrative shaping investor perception of GM's long-term trajectory. The company said it has "substantially" completed material charges related to its all-electric vehicle pullback, indicating the write-down cycle is effectively over. Per-vehicle EV losses are tracking to shrink by $1 billion to $1.5 billion year-over-year — a pace that underpinned the earnings beat even as demand for electric models weakened.Electric vehicles represented just 3.8% of GM's U.S. deliveries in Q2 2026, down sharply from 6.2% a year earlier, nearly halving the electric share of domestic sales in twelve months. Total U.S. vehicle sales declined 4.2% in the quarter. The pullback reflects a deliberate recalibration of production volumes toward margin sustainability, as GM prioritizes unit economics over near-term market-share in the EV segment. The company has absorbed more than $10 billion in charges to fund that repositioning.
Market Reaction
GM stock rose in pre-market trading on Tuesday alongside a broader equity market lift from multiple large-cap earnings beats. The $0.38 adjusted EPS outperformance relative to consensus stood among the stronger beats in the industrial sector this reporting cycle. The combination of the quarterly beat and a second upward guidance revision reinforced confidence in management's ability to sustain pricing discipline through the ongoing EV transition.Raised Guidance
GM updated its full-year 2026 targets for the second consecutive quarter. Adjusted EBIT is now projected at $14 billion to $16 billion, up $500 million from prior guidance, and adjusted EPS now targets $12 to $14, also up $500 million. Consistent vehicle transaction prices, lower warranty costs, and the ongoing trajectory of narrowing EV profitability losses supported the revised outlook.
