General Motors reported stronger-than-expected second-quarter earnings, prompting the company to raise its 2026 earnings guidance. Key drivers of GM’s improved outlook included stable vehicle transaction prices, reduced warranty expenses, and decreasing losses in its electric vehicle segment. CFO Paul Jacobson highlighted the company’s solid momentum and described GM’s stock, which recently traded around $75 per share, as undervalued despite substantial gains over the past year.

The automaker delivered adjusted earnings per share of $3.57 on revenue of $48.03 billion in the quarter, surpassing analyst predictions. GM now forecasts its full-year adjusted earnings before interest and taxes (EBIT) between $14 billion and $16 billion, with adjusted EPS expectations raised to $12 to $14. Additionally, the company increased its adjusted automotive free cash flow outlook to a range of $9.5 billion to $11.5 billion. However, GM reduced its net income attributable to stockholders forecast to between $8.4 billion and $9.8 billion.

GM’s North American operations continued to drive its results, with an 8.6% adjusted EBIT margin, up 2.5 percentage points from a year earlier. CEO Mary Barra noted the benefits of a strong lineup of pickup trucks and SUVs, alongside disciplined pricing strategies resulting in an average vehicle transaction price of $52,000. The company also made significant progress on its multibillion-dollar electric vehicle pullback, having recognized $10.9 billion in EV-related charges since mid-2025 and paid $4.5 billion of the expected $7.2 billion through the second quarter.

Despite a 31% decline in net income attributable to stockholders compared to the prior year’s quarter, adjusted earnings increased by about 30% to more than $3.9 billion. GM’s improved efficiency, declining EV losses expected to be $1 billion to $1.5 billion lower this year compared with 2025, and continued operational discipline contributed to the company’s confidence in its raised guidance. The strong consumer demand and pricing discipline amid a competitive automotive market underline GM’s positive outlook for the rest of 2026.