General Motors Co. has reported second-quarter earnings that surpassed market forecasts, prompting the Detroit-based automaker to raise its full-year performance guidance.

The company attributes the upgraded outlook to stable vehicle selling prices, reduced warranty costs, and a narrowing loss in its electric vehicle segment following the implementation of a multi-billion-dollar strategic pullback in EV investments.

The Chief Financial Officer, Paul Jacobson, stated on Tuesday that the quarterly results are consistent with the company's operational performance over recent years, noting that adjusted earnings per share for the first half reached a record high, representing a 25% increase year-over-year.

Jacobson described the company's momentum as strong, highlighting that the current share price of around $75 offers significant investment value, having risen over 40% from the previous year, and emphasized the resilient nature of consumer demand.

Key second-quarter results compared to Refinitiv consensus estimates are as follows: adjusted earnings per share came in at $3.57 versus an expected $3.20, while revenue was $48.03 billion against an anticipated $47.01 billion.

The revised full-year guidance now projects adjusted earnings before interest and taxes in the range of $14 billion to $16 billion, translating to adjusted earnings per share of $12 to $14. This is an increase from the previous forecast of $13.5 billion to $15.5 billion and $11.50 to $13.50 per share, respectively.

The company also raised its expectation for adjusted free cash flow from the automotive business to between $9.5 billion and $11.5 billion, up from the prior range of $9 billion to $11 billion.

However, General Motors lowered its net income attributable to shareholders forecast to a new range of $8.4 billion to $9.8 billion, down from the previously adjusted guidance of $9.9 billion to $11.4 billion.

This marks the second consecutive quarter in which the company has raised other financial metrics while reducing its net income forecast for shareholders. In April, the guidance was previously adjusted due to a $500 million tariff rebate.

North American operations remain the core pillar of General Motors' performance. Additionally, revenue from digital services grew by 20% year-over-year, and the electric vehicle business loss for 2026 is expected to be $1 billion to $1.5 billion narrower than in 2025.

Chair and Chief Executive Officer Mary Barra noted in a letter to shareholders that the adjusted EBIT margin in North America reached 8.6%, a 2.5 percentage point improvement from the previous year, achieved through ongoing reductions in warranty expenses, decreased EV losses, and improved operational efficiency. She also confirmed that the company's international operations, including its joint ventures in China, returned to profitability.

Barra further credited steady vehicle pricing and a competitive portfolio of pickup trucks and SUVs for supporting the results. The company maintained disciplined incentives during the quarter, with the average transaction price holding steady at approximately $52,000.

General Motors indicated on Tuesday that the substantial asset impairment charges related to scaling back its electric vehicle business are largely complete. Since the latter half of last year, the company has recorded cumulative impairment charges of $10.9 billion associated with its EV operations.

The company stated that this EV contraction plan is expected to result in $7.2 billion in cash expenditures, of which $4.5 billion had been paid by the end of the second quarter.

Complete second-quarter financial data shows net income attributable to shareholders was $1.3 billion, a decline of 31.1% year-over-year. Adjusted profit exceeded $3.9 billion, an increase of approximately 30%, with an adjusted profit margin of 8.2%. Total revenue increased by 1.9%.

For comparison, in the second quarter of 2025, revenue was $47.12 billion, net income attributable to shareholders was $1.9 billion, and adjusted EBIT was $3.04 billion.