General Motors shares are on a heater this week after the automaker reported second-quarter results ahead of expectations and raised its full-year guidance.
Despite formidable headwinds, including tariffs and rising gas prices, GM reported a 30% increase in profits year over year
GM’s second-quarter earnings before interest and tax rose to $3.94 billion from $3 billion last year. That translates to $3.57 per share, easily topping analyst estimates of $3.20. According to CEO Mary Barra, “Customer demand in North America remains strong, driven by our very attractive lineup of pickups and SUVs.
Pricing is consistent, and we delivered the best quarter and first half ever for new Super Cruise-equipped vehicles.” In addition to increasing EBIT margins in North America, GM says it was able to lower warranty costs, reduce EV losses, and increase its operating efficiency in the second quarter. “We expect these trends will continue to strengthen our performance into 2027 and beyond because we have multiple engines of margin expansion and growth while maintaining our capital discipline,” Barra said. General Motors is so confident right now that it raised its full-year earnings guidance to between $12 and $14 per share, up from its previous expectations of between $11.50 and $13.50. It also raised its adjusted EBIT expectations to between $14 billion and $16 billion from its previous expectation between $13.5 billion and $15.5 billion.