No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Automotive giant General Motors lifted a number of its 2026 earnings forecasts on Tuesday after posting a strongerthanexpected second quarter, with North American operations once again driving performance.
General Motors' upbeat results included adjusted earnings per share of $3.57 versus $3.20 expected and revenues of $48.03bn against $47.01bn forecast - helping push the stock slightly higher in premarket action.
GM said its guidance upgrade reflected steady vehicle transaction prices, lower warranty costs and narrowing losses in its allelectric vehicle division as it continued to unwind a multibilliondollar EV pullback.
The Detroit-based group now expects fullyear adjusted underlying earnings of $14bn to $16bn and adjusted earnings per share of $12 to $14, up from prior ranges of $13.5bn to $15.5bn and $11.50 to $13.50. Adjusted automotive free cash flow guidance was also raised to $9.5bn to $11.5bn.
However, GM trimmed its forecast for net income attributable to stockholders for the second consecutive quarter, now expecting $8.4bn to $9.8bn, down from $9.9bn to $11.4bn previously. GM said the shift reflected ongoing adjustments linked to its EV retrenchment, which has involved $10.9bn in charges since late last year. GM has paid $4.5bn of an expected $7.2bn in cash charges tied to the pullback through Q2.
North America remained GM's standout performer in the quarter, with digital services revenue up 20% and EV losses expected to improve by $1bn to $1.5bn this year versus FY25. Secondquarter net income attributable to stockholders fell 31.1% yearonyear to $1.3bn, while adjusted earnings rose 30% to more than $3.9bn, representing an 8.2% adjusted margin.
As of 1400 BST, General Motors shares were up 1.85% in pre-market at $77.20 each.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.