General Motors Company (NYSE:GM) on Tuesday raised its full-year 2026 profit forecast after posting stronger-than-expected second-quarter results, even as one-time charges tied to its electric vehicle realignment weighed on net income.
The Detroit automaker reported adjusted earnings per share of $3.57 for the quarter, up 41% from a year earlier and above analyst estimates of $3.20. Revenue rose 1.9% to $48.03 billion, topping expectations of $47.01 billion.
Adjusted EBIT climbed 30% to $3.94 billion, ahead of the $3.79 billion analysts had forecast, while adjusted automotive free cash flow surged 78% to $5.03 billion.
GAAP net income fell 31% to $1.31 billion, reflecting $2.3 billion in charges related to GM's EV realignment recorded during the quarter. The company has now booked $10.9 billion in EV-related charges since the second half of 2025, including $7.2 billion with a cash impact.
GM raised its full-year adjusted EPS guidance to a range of $12 to $14, up from a prior estimate and above the $12.76 analysts had expected. The company also lifted its adjusted EBIT outlook to $14 billion to $16 billion, from $13.5 billion to $15.5 billion previously, and raised its adjusted automotive free cash flow guidance to $9.5 billion to $11.5 billion, from $9 billion to $11 billion.
GM kept its capital expenditure and battery joint venture spending forecast at $10 billion to $12 billion.
By segment, GM North America posted adjusted EBIT of $3.45 billion, up 43% from a year earlier and above estimates of $3.26 billion. The company's international operations generated adjusted EBIT of $190 million, down 7% year-over-year but ahead of the $144 million analysts had projected.
Vehicle sales rose 1.6% to 990,000 units in the quarter, while adjusted EBIT margin expanded 180 basis points to 8.2%. GM declared a quarterly dividend of $0.18 per share.
The company's full-year guidance assumes $2.5 billion to $3.5 billion in gross tariff costs and $1.5 billion to $2 billion in commodity inflation and DRAM-related costs.
GM said it expects 2027 results to improve on 2026 and plans to onshore more production to reduce its exposure to tariffs.
Shares seesawed premarket but gained at the open, up 2.1% just after the bell.