GM Q2 Adjusted EPS Beats by 28 Cents as EBIT Margin Expands
General Motors posted Q2 adjusted EPS of $3.57, beating estimates by $0.28, while raising full-year EBIT guidance to $14-16 billion.
Key points
- Q2 2026 adjusted EPS was $3.57, beating the $3.29 consensus estimate by $0.28.
- Full-year 2026 adjusted EBIT guidance was raised to $14-16 billion.
- GAAP net income declined 31.1% to $1.3 billion due to restructuring charges.
General Motors reported second-quarter 2026 revenue of $48.0 billion, a 1.9 percent year-over-year increase. Adjusted diluted earnings per share reached $3.57, exceeding the analyst consensus of $3.29 by $0.28. The company’s stock closed at $83.95 on the NYSE on September 22, 2026, reflecting a 2.13 percent gain.
Despite the beat in adjusted metrics, GAAP diluted EPS fell 26 percent to $1.41, and net income attributable to shareholders dropped 31.1 percent to $1.3 billion. This divergence highlights the impact of restructuring charges and EV strategy costs on bottom-line profit, even as core operating performance improved.
Operating margins expand significantly
Adjusted EBIT rose 29.8 percent to $3.94 billion in the second quarter, lifting the adjusted EBIT margin to 8.2 percent from 6.4 percent in the prior year. North America was the primary driver of this improvement, with regional adjusted EBIT increasing 42.7 percent to $3.4 billion. This growth indicates stronger pricing power or cost controls in the company’s largest market.
Management raises full-year targets
General Motors increased its full-year 2026 adjusted EBIT guidance to a range of $14 billion to $16 billion. Adjusted EPS guidance was also raised to $12 to $14. These upward revisions follow a strong cash generation quarter, where adjusted automotive free cash flow more than doubled to $5.0 billion.
The company further boosted its adjusted automotive free cash flow guidance for the full year to $9.5 billion to $11.5 billion. According to AD HOC NEWS, this improved cash outlook supports the company's ability to fund ongoing investments while maintaining shareholder returns.
Market valuation remains below highs
As of September 22, 2026, General Motors had a market capitalization of $73.66 billion. The stock price of $83.95 remains $7.90 below the 52-week high of $91.85, though it is significantly above the 52-week low of $54.33. Trading volume stood at 7.90 million shares on the NYSE.
