General Motors (NYSE:GM) Posts Quarterly Earnings Results, Beats Estimates By $0.39 EPS

General Motors (NYSE:GM) (TSE:GMM.U) issued its quarterly earnings data on Tuesday. The auto manufacturer reported $3.57 earnings per share for the quarter, topping analysts’ consensus estimates of $3.18 by $0.39, Briefing.com reports. General Motors had a return on equity of 16.68% and a net margin of 1.38%.The firm had revenue of $48.03 billion during the quarter, compared to analysts’ expectations of $47.01 billion. During the same period in the prior year, the business posted $2.53 EPS. The firm’s quarterly revenue was up 1.9% on a year-over-year basis. General Motors updated its FY 2026 guidance to 12.000-14.000 EPS.

Here are the key takeaways from General Motors’ conference call:

• GM raised its full-year 2026 outlook for the second time this year, now guiding to EBIT adjusted of $14 billion-$16 billion, EPS of $12-$14, and adjusted automotive free cash flow of $9.5 billion-$11.5 billion. Management said stronger pricing, better warranty performance, and a slightly improved commodity backdrop drove the increase.
• The company posted a strong first half, with $92 billion in revenue, $8.2 billion in EBIT adjusted, and EPS diluted adjusted up more than 35% year over year to a record $7.27. North America margin improved to 8.6%, putting GM back in its stated 8%-10% target range.
• GM continued to highlight momentum in its core truck and SUV businesses, including more than 42% U.S. full-size pickup share and record fleet deliveries. The company also said its next-generation Silverado and Sierra launches should further strengthen share, pricing, and profitability into 2027 and beyond.
• GM said its EV restructuring is substantially complete, with $10.9 billion of EV-related charges recorded since the second half of 2025 and roughly $7.2 billion expected to be cash impacting. The company expects EV losses to improve by $1 billion-$1.5 billion this year as it rightsizes capacity, but the reset underscores the scale of the transition.
• Beyond traditional auto sales, GM emphasized growing software and services revenue, with 1 million new subscriptions expected this year and more than $3 billion in recognized revenue. Management also highlighted scaling opportunities in GM Insurance and GM Defense, which it believes can diversify earnings and support margin expansion over time.

General Motors Trading Up 5.1%

NYSE:GM opened at $79.67 on Wednesday. General Motors has a 12 month low of $48.87 and a 12 month high of $87.62. The firm has a fifty day simple moving average of $78.91 and a 200-day simple moving average of $78.83. The company has a current ratio of 1.15, a quick ratio of 0.99 and a debt-to-equity ratio of 1.41. The company has a market capitalization of $71.84 billion, a P/E ratio of 32.13, a PEG ratio of 0.38 and a beta of 1.31.

General Motors Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Friday, September 4th will be issued a $0.18 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 0.9%. General Motors’s dividend payout ratio (DPR) is currently 29.03%.

Insider Activity at General Motors

In other General Motors news, CAO Christopher Hatto sold 6,895 shares of General Motors stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $85.00, for a total transaction of $586,075.00. Following the completion of the sale, the chief accounting officer owned 25,794 shares of the company’s stock, valued at approximately $2,192,490. The trade was a 21.09% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Rory Harvey sold 79,494 shares of the business’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $83.02, for a total value of $6,599,591.88. Following the sale, the executive vice president owned 46,519 shares in the company, valued at approximately $3,862,007.38. The trade was a 63.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 697,388 shares of company stock valued at $57,752,596 in the last ninety days. Company insiders own 0.54% of the company’s stock.

Institutional Investors Weigh In On General Motors

A number of institutional investors and hedge funds have recently modified their holdings of GM. AQR Capital Management LLC lifted its position in General Motors by 5.5% during the third quarter. AQR Capital Management LLC now owns 14,252,689 shares of the auto manufacturer’s stock valued at $868,986,000 after purchasing an additional 748,831 shares during the period. Morgan Stanley lifted its holdings in shares of General Motors by 3.9% in the 4th quarter. Morgan Stanley now owns 13,191,028 shares of the auto manufacturer’s stock valued at $1,072,695,000 after buying an additional 494,404 shares during the period. Viking Global Investors LP boosted its stake in shares of General Motors by 81.1% in the second quarter. Viking Global Investors LP now owns 13,018,874 shares of the auto manufacturer’s stock worth $640,659,000 after buying an additional 5,830,050 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in General Motors by 21.0% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 8,245,861 shares of the auto manufacturer’s stock worth $670,553,000 after acquiring an additional 1,430,683 shares during the period. Finally, Amundi raised its position in General Motors by 3.0% during the fourth quarter. Amundi now owns 6,165,163 shares of the auto manufacturer’s stock valued at $501,351,000 after acquiring an additional 176,954 shares in the last quarter. Institutional investors and hedge funds own 92.67% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have commented on GM. Wolfe Research upgraded shares of General Motors from a “peer perform” rating to an “outperform” rating and set a $96.00 target price for the company in a report on Wednesday, March 25th. Wedbush restated an “outperform” rating and issued a $95.00 price target on shares of General Motors in a report on Monday, May 11th. Royal Bank Of Canada cut their price objective on shares of General Motors from $95.00 to $94.00 and set an “outperform” rating on the stock in a research report on Monday, July 13th. Deutsche Bank Aktiengesellschaft upgraded shares of General Motors from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $83.00 to $90.00 in a research note on Tuesday, April 14th. Finally, Mizuho decreased their target price on shares of General Motors from $105.00 to $100.00 and set an “outperform” rating for the company in a research report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $97.27.

Trending Headlines about General Motors

Here are the key news stories impacting General Motors this week:

• Positive Sentiment: GM delivered a beat-and-raise quarter, reporting Q2 adjusted EPS of $3.57 on revenue of $48.03 billion, both above expectations, as strong pricing and cost discipline helped margins expand. GM releases 2026 second-quarter results, raises full-year 2026 guidance and declares quarterly dividend
• Positive Sentiment: The company raised its 2026 profit forecast, citing profitable truck and SUV sales, resilient consumer demand, and improved North America margins, which supports the case for better earnings momentum in the second half. GM quarterly core profit rises 30% on truck, SUV strength
• Positive Sentiment: GM also increased its quarterly dividend, reinforcing management’s confidence in cash generation after the earnings beat. GM Financial Reports Second Quarter 2026 Operating Results
• Positive Sentiment: Investors are also encouraged by GM’s growing software and subscriptions business, with OnStar and Super Cruise generating meaningful recurring revenue that could improve the company’s long-term margin profile. GM is quietly becoming a subscriptions company
• Neutral Sentiment: GM is continuing to reset its EV strategy, including write-downs and lower EV deliveries, which creates near-term noise but may reduce future losses if the pivot improves capital allocation. GM swallowed a $10.9 billion pill to reset its EV strategy. It says the worst is nearly over.
• Negative Sentiment: Some coverage still points to EV-related charges and brand challenges, including weak sentiment around Cadillac, which could temper enthusiasm if investors focus on execution risk rather than the earnings beat. Cadillac Is America’s Worst Luxury Brand, By Far

About General Motors

General Motors Company (NYSE: GM) is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world’s largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM’s operations encompass vehicle financing, connected services and advanced mobility initiatives.

GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.