General Motors Company
GM · NYSE
Next quarter
Expected to report Oct 20, 2026 — estimated from last year’s reporting date.
Consensus is $3.37 EPS for Sep 2026 across 9 estimates, ranging $3.02 to $3.60.
GM Jun 2026
- 14.06%
- +3.28%
- $3.13
- $3.57
- —
- $43.76B
Reported results
- $43.76B
- $1.46B
- 3.33%
- $1.30B
- $1.41
Highlights
- Adjusted earnings beat: EPS-diluted-adjusted was $3.57, ahead of the $3.13 consensus by 14.06% and up 41.3% from $2.53 a year ago.
- Operating performance improved: Revenue rose 1.9% year over year to $48.0 billion, while EBIT-adjusted increased 29.8% to $3.94 billion and margin expanded 1.8 percentage points to 8.2%.
- GAAP earnings declined: Net income attributable to stockholders fell 31.1% to $1.31 billion and diluted EPS fell to $1.41 from $1.91, primarily reflecting $2.46 billion of adjustments, including EV realignment charges.
- Guidance raised again: GM lifted 2026 EBIT-adjusted guidance to $14.0-$16.0 billion from $13.5-$15.5 billion, adjusted EPS to $12.00-$14.00 from $11.50-$13.50, and adjusted automotive free cash flow to $9.5-$11.5 billion from $9.0-$11.0 billion.
- EV restructuring remained the defining special item: GM recorded $2.3 billion of additional net EV strategic realignment charges in the quarter, of which $1.6 billion will require cash, and $3.4 billion in the first half.
- North America carried the quarter: GMNA EBIT-adjusted rose 42.7% to $3.45 billion, with margin reaching 8.6% from 6.1% a year ago, despite U.S. market share declining to 16.6% from 17.4%.
- Cash generation strengthened: Adjusted automotive free cash flow was $5.03 billion, up 78.0% year over year, while automotive operating cash flow increased 9.0% to $5.07 billion.
- Volume was broadly stable but mix weakened: Global wholesale vehicle sales increased to 990,000 from 974,000, while U.S. total vehicle sales fell to 715,000 and fleet sales rose to 22.3% of total sales from 17.8%.
- Capital returns continued: GM repurchased $2.8 billion of stock in the first half, had $6.3 billion of total repurchase authorization, and declared a quarterly dividend of $0.18 per share.
Analysis
General Motors delivered a strong adjusted quarter against expectations but a weaker GAAP result because EV restructuring charges remained substantial. Adjusted diluted EPS was $3.57 versus the $3.13 consensus and $2.53 a year ago, while revenue reached $48.0 billion, up 1.9% year over year. EBIT-adjusted rose 29.8% to $3.94 billion, lifting margin to 8.2% from 6.4%. By contrast, GAAP net income attributable to stockholders fell to $1.31 billion from $1.90 billion and diluted EPS declined to $1.41 from $1.91. Against the prior quarter on file, revenue increased from $39.35 billion, while operating income, net income and diluted EPS declined from $2.93 billion, $2.63 billion and $2.82, respectively.
The print was defined by three developments. GMNA delivered the operating upside, with EBIT-adjusted up 42.7% to $3.45 billion on an 8.6% margin. EV realignment charges, however, reached $2.3 billion in the quarter and $3.4 billion year to date, including commercial settlements, contractual supply losses and compliance-related charges. Management nevertheless raised full-year adjusted EBIT, EPS and free-cash-flow guidance for the second time, while adjusted automotive free cash flow surged 78.0% to $5.03 billion. China remained strategically difficult, with industry sales down 16.6% and GM market share falling to 6.8% in the first half.
Earnings and guidance
GM's underlying operating result was materially stronger than the GAAP figures suggest. EBIT-adjusted increased $906 million year over year to $3.94 billion, and adjusted EPS rose $1.04 to $3.57. The $2.46 billion of quarterly adjustments, principally EV strategic realignment, created a wide gap between adjusted EPS and reported diluted EPS of $1.41. Management raised full-year guidance for the second time this year, indicating confidence in the core vehicle business despite tariff and policy uncertainty.
- 2026 EBIT-adjusted: Guidance increased to $14.0-$16.0 billion from $13.5-$15.5 billion.
- Adjusted EPS: Guidance increased to $12.00-$14.00 from $11.50-$13.50, while reported diluted EPS guidance is $8.98-$10.98.
- Cash flow: Adjusted automotive free cash flow guidance rose to $9.5-$11.5 billion from $9.0-$11.0 billion, although automotive operating cash flow guidance declined to $15.4-$19.4 billion from $16.8-$20.8 billion because of higher adjustments.
EV strategic realignment
EV restructuring was the quarter's largest financial distortion and remains a material cash and execution issue. GM recorded $2.3 billion of additional net charges in the second quarter, including $1.3 billion from ongoing commercial negotiations with suppliers and joint venture partners, $1.1 billion of losses on contractual supply agreements, and $493 million related to compliance assets, net of $660 million of recoveries. The company expects additional charges in 2026 but believes it has substantially completed the material cash charges associated with the realignment.
- Quarterly charge: $2.3 billion, of which $1.6 billion is expected to affect cash when paid.
- First-half charge: $3.4 billion, including $2.5 billion of expected cash charges; GM incurred $4.1 billion of EV-related cash outflows in the first half.
- Operating scope: GM said the capacity realignment does not affect current Chevrolet, GMC and Cadillac EV models in production, while the carrying amount of compliance-related assets was $0.7 billion at June 30.
North America performance
GMNA was the main source of the quarter's operating improvement. The segment benefited from its truck and SUV-heavy portfolio, pricing discipline and cost actions, even as the U.S. market contracted and GM ceded share. The mix of sales was less favorable, with fleet volume growing faster than total sales; management notes that fleet transactions, particularly daily-rental sales, are generally less profitable than retail sales.
- GMNA EBIT-adjusted: $3.45 billion, up 42.7% year over year, with margin expanding to 8.6% from 6.1%.
- U.S. sales: GM sold 715,000 vehicles in the quarter and held 16.6% share, down from 747,000 vehicles and 17.4% share a year ago.
- First-half position: U.S. share was 16.7% versus 17.3% a year ago, while North American industry sales declined 2.6%.
- Fleet mix: Fleet sales increased to 318,000 vehicles, or 22.3% of total sales, from 274,000 and 17.8% a year ago.
Cash and capital allocation
Cash generation improved sharply on an adjusted basis, giving GM room to continue buybacks and dividends while funding its restructuring and investment program. The cash-flow reconciliation includes $1.87 billion of EV strategic realignment additions in the quarter, so reported adjusted free cash flow should be read alongside the underlying automotive operating cash flow and the continuing restructuring cash requirements.
- Automotive operating cash flow: $5.07 billion, up 9.0% year over year.
- Adjusted automotive free cash flow: $5.03 billion, up 78.0% from $2.83 billion a year ago after $1.92 billion of capital expenditures.
- Liquidity: Cash and cash equivalents were $20.1 billion at June 30, down from $20.9 billion at year-end; total cash, cash equivalents and restricted cash were $23.6 billion.
- Shareholder returns: GM repurchased $2.8 billion of stock in the first half and declared a $0.18 quarterly dividend payable September 17, 2026.
China and financial services
International results were mixed. GMI EBIT-adjusted declined 6.6% to $190 million, while China equity income improved to $83 million from $71 million despite a sharply weaker market. GM Financial remained profitable but contributed less than a year ago as higher expenses and credit costs weighed on results.
- China volumes: GM's first-half China sales fell to 706,000 vehicles from 890,000, and market share declined to 6.8% from 7.2%; industry sales fell 16.6%.
- China profitability: Automotive China joint venture equity income rose to $248 million in the first half from $116 million, including income related to restructuring.
- GM Financial: EBT-adjusted declined 14.0% to $605 million from $704 million, while the allowance for loan losses rose to $2.87 billion, or 3.1% of finance receivables, from 2.9% at year-end.
- Credit quality: Retail finance receivables more than 30 days delinquent or in repossession represented 3.5% at June 30, versus 3.0% a year earlier.
