General Motors (NYSE:GM) raised its full-year 2026 guidance for the second time this year after reporting higher second-quarter revenue, adjusted earnings and free cash flow, with management citing steady North American demand, disciplined pricing, lower warranty costs and reduced electric vehicle losses.
Chair and CEO Mary Barra said the automaker delivered “another solid quarter” and that employees, dealers and suppliers helped the company “win in a dynamic market.” She said customer demand in North America remained steady, including for pickups and SUVs, while pricing was consistent.
GM Raises 2026 Outlook After Strong First Half
CFO Paul Jacobson said GM generated $92 billion in revenue and $8.2 billion in EBIT-adjusted earnings in the first half of 2026. Adjusted diluted earnings per share rose more than 35% year over year to $7.27, which Jacobson described as the company’s best first-half adjusted EPS performance ever.
For the second quarter, total company revenue was $48 billion, up $900 million from a year earlier. EBIT-adjusted earnings were $3.9 billion, also up $900 million year over year. Adjusted automotive free cash flow rose $2.2 billion to $5 billion.
GM now expects:
- EBIT-adjusted earnings of $14 billion to $16 billion, up from prior guidance of $13.5 billion to $15.5 billion.
- Adjusted diluted EPS of $12 to $14, up from $11.50 to $13.50.
- Adjusted automotive free cash flow of $9.5 billion to $11.5 billion, up from $9 billion to $11 billion.
Jacobson said the updated guidance reflects strong operating performance, improved pricing and warranty assumptions, and a slightly better commodity outlook. He said the outlook assumes no material escalation in the Middle East and no significant increase in commodity or other inflationary pressures from current levels.
North America Margins Return to Target Range
GM North America delivered second-quarter EBIT-adjusted earnings of $3.4 billion, up $1 billion, or more than 40%, from a year earlier. The region’s margin was 8.6%, up 2.5 percentage points from the prior year and within the company’s 8% to 10% target range.
Jacobson said the improvement was broad-based and driven by strong pricing, lower EV losses, and warranty and emissions-related regulatory tailwinds. Those gains were partially offset by commodity inflation, logistics costs, higher DRAM costs and manufacturing costs tied to onshoring production to the U.S.
GM ended the quarter with U.S. dealer inventory of 511,000 units, or about 55 days of supply, which Jacobson said was in the middle of the company’s targeted 50- to 60-day range.
Barra said GM plans to launch the next-generation Chevrolet Silverado and GMC Sierra light-duty pickups in December. She said the trucks will offer improved ride quality, power, durability and towing capability, along with upgraded exterior and interior designs. The company plans to maintain record production volumes year over year while launching the trucks at three assembly plants and launching next-generation V8 engines at three propulsion plants.
EV Restructuring Charges Continue, But Cash Charges Near Completion
GM recorded $2.3 billion in incremental EV-related restructuring charges in the second quarter. Jacobson said the charges included $900 million in supplier-related cash charges, $700 million in cash charges to right-size the battery supply chain with joint venture partners, and $700 million in non-cash write-offs for compliance-related and other asset impairments.
Since the second half of 2025, GM has recorded $10.9 billion in EV-related charges, of which about $7.2 billion will have a cash impact. Through the end of the second quarter, the company had paid $4.5 billion of that amount.
Jacobson said GM believes its actions “substantially complete the material cash charges” expected as the company aligns EV capacity and manufacturing footprint with regulatory policy changes, though he noted circumstances could change and some true-ups may occur.
For the full year, GM continues to expect EV losses to improve by $1 billion to $1.5 billion, driven by right-sizing EV capacity and significantly lower volume. The company realized about $500 million of that benefit in the first half and expects EV wholesale volumes to rise slightly in the second half as it resumes building to demand.
Software, Services and New Businesses Highlighted as Growth Areas
Barra and Jacobson emphasized GM’s software and services business, including OnStar and Super Cruise, as a margin-accretive growth area. Barra said GM expects 1 million new subscriptions this year, contributing to more than $3 billion in recognized revenue. Jacobson said deferred revenue rose to $6.3 billion, up almost 50% from a year earlier, while second-quarter recognized revenue was $800 million, up 20% year over year.
Barra said GM will make Super Cruise standard on high-end Silverado and Sierra trims and optional on most other trims, estimating 160,000 incremental Super Cruise units from that strategy. During the Q&A session, Barra said GM continues to evaluate pricing and expansion based on customer reception, adding that the company sees “a very high attach rate” after included service periods end. Jacobson said Super Cruise attachment rates are in the 30% to 40% range.
GM also pointed to GM Insurance and GM Defense as emerging businesses. Barra said GM Insurance has expanded from three states in early 2024 to 21 states and is available to more than 60% of GM’s U.S. sales, with a goal of reaching more than 80% in the near term.
Barra said GM Defense expects 2026 revenue to grow to almost $700 million and is targeting positive EBIT results this year. She said the business is targeting a revenue compound annual growth rate of more than 30% over the next several years with double-digit margins.
Share Buybacks and 2027 Outlook
GM continued to repurchase shares in the quarter, buying back $2 billion in open-market shares and retiring about 25 million shares. First-half repurchases totaled $2.8 billion, with 36 million shares retired. Jacobson said GM ended the second quarter with a diluted share count of 893 million, down about 8% from the second quarter of 2025 and 35% from the second quarter of 2023. The company had $3.5 billion remaining under its current repurchase authorization.
Looking ahead, Jacobson said GM believes it can grow revenue, margins, EBIT and free cash flow in 2027 based on current conditions. He cited continued improvement in EV profitability, growth in OnStar digital revenue, additional warranty improvements, fixed-cost efficiencies, a full year of the new Silverado and Sierra pickups, and increased full-size SUV supply.
Barra closed the call by saying GM’s vehicle portfolio is strengthening, its onshoring efforts should reduce tariff expense, and its software, services and adjacent businesses are creating additional value opportunities. “We’re confident in 2026, and have said it will be stronger than 2025,” she said. “More importantly, that 2027 and the years beyond will be stronger still.”
About General Motors (NYSE:GM)
General Motors Company (NYSE: GM) is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world’s largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM’s operations encompass vehicle financing, connected services and advanced mobility initiatives.
GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.
