Overview

• US automaker's Q2 revenue rose 1.9% yr/yr, beating analyst expectations

• Q2 adjusted EPS beat analyst expectations, rising 41% yr/yr

• Company raised full-year 2026 EBIT-adjusted and adjusted EPS guidance

Outlook

• GM raises 2026 EBIT-adjusted guidance to $14.0 bln-$16.0 bln from $13.5 bln-$15.5 bln

• Company now sees 2026 adj EPS at $12.00-$14.00, up from $11.50-$13.50

• GM expects 2026 adjusted automotive free cash flow of $9.5 bln-$11.5 bln

Result Drivers

• NORTH AMERICA MARGINS - GM said Q2 EBIT-adjusted margin in North America rose to 8.6% from 6.1% a year earlier, supporting overall profit growth

• FREE CASH FLOW - Adjusted automotive free cash flow jumped 78% yr/yr to $5.03 bln in Q2, which the company highlighted as a financial strength

Company press release: ID:nPn9XY1H9a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$48.03 bln	$47.01 bln (15 Analysts)
Q2 Adjusted EPS	Beat	$3.57	$3.20 (17 Analysts)
Q2 EPS		$1.41
Q2 Net Income		$1.31 bln
Q2 Adjusted EBIT	Beat	$3.94 bln	$3.79 bln (13 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy"

• Wall Street's median 12-month price target for General Motors Co is $97.50, about 28.6% above its July 20 closing price of $75.80

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• July 21 - GM quarterly core profit rises 30% on truck, SUV strength

• July 19 - Canada's Unifor members ratify 3-year deal with Ford

• July 20 - Chinese car sales in Mexico surge despite new tariffs

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