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General Motors Raises 2026 Earnings Outlook as Second-Quarter Revenue Tops Expectations

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General Motors Raises 2026 Earnings Outlook as Second-Quarter Revenue Tops Expectations

General Motors (GM) lifted its full-year earnings outlook on Tuesday as the automaker recorded an unexpected year-over-year increase in its second-quarter revenue.

The company now anticipates adjusted earnings between $12 and $14 per share for 2026, up from its previous guidance of $11.50 to $13.50. The consensus on FactSet is for non-GAAP EPS of $12.97.

The revised outlook reflects pricing in North America to be up about 0.5%, compared with prior expectations for it to be flat to up 0.5%, according to an earnings presentation. The automaker sees a warranty cost benefit of $1 billion to $1.5 billion, versus roughly $1 billion previously projected. Tariff costs are still pegged at $2.5 billion to $3.5 billion.

GM now forecasts adjusted automotive free cash flow of $9.5 billion to $11.5 billion for the ongoing year, higher than the prior view of $9 billion to 11 billion.

GM posted revenue of $48.03 billion for the June quarter, up from $47.12 billion last year, defying the Street's view for a dip to $47.01 billion. Adjusted EPS jumped 41% to $3.57, exceeding the average analyst estimate of $3.19.

"Customer demand in North America remains strong driven by our very attractive lineup of pickups and (sport utility vehicles)," Chief Executive Mary Barra said in a letter to shareholders.

Pricing was "consistent," while the company continues to lower its warranty costs and reduce electric vehicles losses, Barra said.

Revenue in North America rose to $39.91 billion from $39.49 billion in the 2025 quarter, while international sales advanced to $3.69 billion from $3.33 billion. Consolidated vehicle sales fell to 1.43 million units from 1.54 million last year amid a drop in the US.

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