GM raises full-year guidance after Q2 earnings beat on cost cuts

General Motors reported second-quarter earnings that exceeded Wall Street expectations and raised its full-year profit forecast, driven by resilient vehicle pricing and ongoing cost reductions. The automaker posted adjusted earnings per share of $3.06 for the quarter ended June 30, 2026, surpassing the average analyst estimate of $2.70. Revenue rose to $47.9 billion, up from $45.2 billion in the same period last year.

The stronger-than-expected results reflect GM's ability to maintain premium pricing on its highly profitable pickup trucks and SUVs, even as the broader auto industry faces pressure from rising inventories and potential demand softening. The company also benefited from aggressive cost-cutting measures, including restructuring its Cruise autonomous vehicle unit and reducing fixed costs across its operations.

GM now expects full-year 2026 adjusted earnings before interest and taxes (EBIT) to be between $14.5 billion and $15.5 billion, up from its prior guidance of $13.5 billion to $15 billion. The company also raised its adjusted automotive free cash flow forecast to $10.5 billion to $11.5 billion, compared with the earlier range of $9.5 billion to $11.5 billion.

In addition to the earnings beat and guidance raise, GM announced plans to return more capital to shareholders. The company said it will increase its quarterly dividend by 33% to 12 cents per share and expand its share buyback program by $6 billion, bringing the total authorization to $10 billion. These moves come as GM's net income for the quarter surged to $3.4 billion, up from $2.6 billion a year earlier.

The strong performance and upbeat outlook come despite ongoing challenges in the electric vehicle (EV) transition. GM has slowed some of its EV production targets and is focusing on profitability in its traditional internal combustion engine business while gradually scaling its EV lineup. The company's shares rose more than 5% in premarket trading following the announcement.

Looking ahead, GM executives said they expect vehicle pricing to remain relatively stable through the rest of the year, though they acknowledged potential headwinds from higher interest rates and increased competition. The company plans to continue its cost-saving initiatives and prioritize shareholder returns while investing in new vehicle launches, including several updated models and EVs.