Key facts
- General Motors reported a 30% increase in second-quarter core profit.
- The company's earnings before interest and taxes were $3.9 billion.
- Adjusted earnings per share of $3.57 exceeded analysts' estimates of $3.20.
- GM raised its 2026 profit outlook by $500 million to a range of $14 billion to $16 billion.
- Revenue rose 2% to $48 billion.
General Motors reported a 30% increase in second-quarter core profit, surpassing analyst expectations due to strong sales and solid pricing for its profitable SUV and truck models. The company announced it has raised its earnings outlook for the year.
Despite economic headwinds such as higher gas prices and inflation, GM's North American market performance drove results, supported by solid pricing. The automaker's earnings before interest and taxes reached $3.9 billion, up from approximately $3 billion a year prior. Adjusted earnings per share came in at $3.57, exceeding the analyst estimate of $3.20.
GM revised its 2026 profit outlook upward by $500 million, now projecting between $14 billion and $16 billion. This follows a similar increase in the first quarter, attributed partly to expected recoveries from tariff-related refunds.
However, the company anticipates continued pressure from tariffs and rising supply costs. GM maintained its forecast of a $2.5 billion to $3.5 billion impact from tariffs and expects inflation in raw materials, chips, and logistics to reduce earnings by $1.5 billion to $2 billion this year.
Quarterly net income saw a 31% decrease to $1.3 billion, largely due to approximately $2.3 billion in costs associated with restructuring its electric vehicle factory operations. Revenue for the quarter increased by 2% to $48 billion. The profit margin in North America improved to 8.6% from 6.1% a year ago, despite a 4% dip in sales volume. In China, GM reported equity income of $83 million, an increase from the previous year, while its international business outside China posted a core profit of $190 million, down 7%.