General Motors reported second-quarter results that handily beat Wall Street forecasts, with adjusted earnings per share of $3.57 crushing the $3.20 consensus and revenue of $48.0 billion topping estimates of $46.99 billion. Despite the beat, GM stock fell 3.3% on the day, weighed down by a hefty restructuring charge tied to its electric vehicle factory footprint and ongoing tariff uncertainty.
Adjusted EBIT surged nearly 30% to $3.9 billion, and the North American segment was the standout with a $3.4 billion adjusted EBIT and 8.6% margin, driven by truck and SUV sales. While volume dipped 4%, pricing held firm. However, net income attributable to stockholders dropped to $1.3 billion from $1.9 billion a year earlier due to approximately $2.3 billion in restructuring costs related to GM's EV transformation.
For the full year, GM raised its adjusted EPS guidance to $12.00–$14.00, with a midpoint above the $12.79 analyst consensus, and increased adjusted EBIT guidance to $14.0–$16.0 billion. This marks the second raise this year, partly reflecting a tariff rebate from a Supreme Court ruling. Management kept unchanged its forecast of a $2.5–$3.5 billion tariff hit and flagged $1.5–$2.0 billion in headwinds from raw materials, chips, and logistics.
Options markets had priced in a post-earnings move of roughly 6.68%, implying a range of $70.74 to $80.86. Analysts maintain a Moderate Buy consensus with an average price target of $98.67, implying significant upside. Barclays analyst Dan Levy had expected a beat and a “soft raise” on guidance, noting the auto sector's benefit from strong U.S. macro conditions and steady pricing. The board declared a quarterly dividend of $0.18 per share.
