GM 2026 Q2

GM raised full-year 2026 guidance for the second time this year, lifting EBIT adjusted, EPS diluted adjusted, and adjusted automotive free cash flow ranges, citing stronger pricing, warranty, and a slightly better commodity outlook.

“we are raising our full-year guidance across all of our key metrics”— Paul Jacobson, Executive Vice President and CFO

Management now expects Q4 2026 to be weaker than typical seasonal patterns due to higher new-truck launch costs and an anticipated ~35,000 unit year-over-year volume headwind from the changeover.

“we expect the fourth quarter to be somewhat weaker than typical seasonal patterns would imply”— Paul Jacobson, Executive Vice President and CFO

Management explicitly framed 2027 as an inflection point where it expects to grow revenue, margins, EBIT, and free cash flow, building on multi-year tailwinds beginning to compound.

“we believe we can grow revenue, margins, EBIT, and free cash flow next year”— Paul Jacobson, Executive Vice President and CFO

Full-year North America pricing guidance was raised to up about half a percent, now at the high end of prior guidance, though the benefit is expected to shrink in H2 as GM laps last year's model-year price increases.

“we now expect full-year North America pricing to be up around half a percent”— Paul Jacobson, Executive Vice President and CFO

Management described a deliberate shift away from historically discounting fleet sales as an outlet for excess capacity, now consciously balancing retail and fleet allocation without sacrificing value.

“We very consciously allocate between retail and fleet and where we can, but we don't sacrifice value when we're doing that.”— Paul Jacobson, Executive Vice President and CFO

Unlike prior truck cycles, the current generation has not seen heavy end-of-cycle discounting, and management sees an opportunity to take additional price on the new-generation Silverado/Sierra launch.

“We have not seen the typical heavy discounting at the end of the cycle that I think has permeated the historical models.”— Paul Jacobson, Executive Vice President and CFO

Fleet business posted its best first half in more than five years, including the highest government sales since 2009 and record full-size pickup deliveries, driven by strong commercial demand.

“Fleet sales have been strong, with our best first half in more than five years”— Paul Jacobson, Executive Vice President and CFO

Management clarified that the meaningful volume upside from the new truck launch will not materialize until late 2027 or 2028, once all engine plants and Orion capacity are online, rather than immediately.

“The real volume opportunity comes in the very late 2027 or more in the 2028 timeframe.”— Mary Barra, Chair and CEO

GM Defense revenue is expected to grow to almost $700 million in 2026 with a first-time target of positive EBIT this year, and management now projects a 30%+ revenue CAGR over several years with double-digit margins.

“GM Defense expects 2026 revenue to grow to almost $700 million and is targeting positive results on an EBIT basis for this year”— Mary Barra, Chair and CEO

In passing: GM shares rose after Lockheed Martin said GM has begun supplying components to it, tied to GM's defense business. GM Looks 29.8% Overvalued on GF Value™ as Insider Selling Persists — gurufocus.com · 17 September 2026

GM Insurance has scaled rapidly from 3 states in early 2024 to 21 states today, now covering over 60% of U.S. sales, with management targeting over 80% coverage in the near term.

“We are on track to reach over 80% in the near term.”— Mary Barra, Chair and CEO

GM plans to make Super Cruise standard on high-end Silverado/Sierra trims and optional on most other models next year, expecting 160,000 incremental Super Cruise units from this enhancement strategy.

“we're estimating 160,000 incremental Super Cruise units from this product enhancement strategy”— Mary Barra, Chair and CEO

Digital/software deferred revenue grew nearly 50% year over year to $6.3 billion with recognized revenue up 20%, and management now expects double-digit growth in realized digital revenue in 2027.

“Subscriber growth drove deferred revenue to $6.3 billion, up almost 50% from a year ago”— Paul Jacobson, Executive Vice President and CFO

GM is introducing a redesigned software experience with expanded screen space on the new Silverado and Sierra pickups. General Motors (GM) Bets on Software to Strengthen its Pickup Truck Franchise — finance.yahoo.com · 18 September 2026

The next-generation Silverado and Sierra light-duty trucks, launching in December with new V8 engines at three plants, are positioned by management as a significant step-up in design, performance, and capability versus the current generation.

Per Mary Barra, Chair and CEO

GM unveiled the redesigned 2027 Chevrolet Silverado 1500 and GMC Sierra 1500 ahead of their launch. General Motors Unveils Redesigned 2027 Chevrolet Silverado 1500 and GMC Sierra 1500 — gurufocus.com · 18 September 2026

Full-year warranty tailwind guidance was raised to $1.0-$1.5 billion from a prior $1 billion assumption, reflecting better-than-expected warranty experience and quality initiatives.

“We increased from a billion-dollar year-over-year tailwind to a billion to a billion and a half.”— Paul Jacobson, Executive Vice President and CFO

North America EBIT adjusted margin rose to 8.6%, up 2.5 points year over year, moving the region solidly back within its 8%-10% target range after having worked through tariff pressure.

“Margin was 8.6%, an improvement of 2.5 points from a year ago when tariffs were first put into place.”— Paul Jacobson, Executive Vice President and CFO

Emissions-related regulatory savings are expected to shrink in the second half as GM begins lapping the credit-amortization benefits that started in the second half of 2025, decelerating this margin tailwind.

“we expect a smaller benefit in the second half as we begin to lap the savings that started in the second half of 2025”— Paul Jacobson, Executive Vice President and CFO

GM China equity income turned positive at $100 million, which management attributed to restructuring work that enabled profitability despite a very difficult competitive environment.

“The team deserves a lot of credit for the restructuring work they did to enable us to be profitable despite the very difficult environment.”— Paul Jacobson, Executive Vice President and CFO

Management stated that the company has substantially completed the material cash charges related to EV capacity restructuring after $10.9 billion in cumulative charges, reducing the risk of further large charges going forward.

“we believe these actions substantially complete the material cash charges we expect to incur”— Paul Jacobson, Executive Vice President and CFO

GM expanded its collaboration with Micron for memory chips, aiming to strengthen long-term supply availability and jointly develop future memory technology roadmaps, addressing prior DRAM cost and supply pressure.

Per Mary Barra, Chair and CEO

Overall U.S. market share fell about 60 basis points year over year in the first half, which management attributed to discontinuing the Malibu and XT4, a smaller EV market, and tight early-year dealer inventory.

“our market share was down by about 60 basis points versus the first half of 2025”— Paul Jacobson, Executive Vice President and CFO

Despite lower-than-target inventories for most of the year, GM grew full-size pickup market share year over year in both Q2 and the first half, extending its lead to more than 10 points over the closest competitor.

“we grew share year-over-year in both the second quarter and the first half”— Mary Barra, Chair and CEO

Management characterized China's autonomy/EV pricing environment as intensely and unsustainably competitive, contrasting it with the U.S. market where GM sees durable pricing power for autonomy features like Super Cruise.

“There's intense pricing competition that frankly is unsustainable in country solutions for the vehicles.”— Mary Barra, Chair and CEO

Management pointed to active U.S.-Mexico-Canada negotiations over tariff rates and potential U.S. content requirements, noting GM's onshoring push is intended to reduce future tariff exposure as policy evolves.

Per Mary Barra, Chair and CEO

GM accelerated share repurchases to $2.8 billion and 36 million shares retired in the first half, nearly $1 billion more than the prior-year period despite ongoing EV restructuring cash costs.

“This is nearly $1 billion more than the first half of last year, despite our EV restructuring efforts.”— Paul Jacobson, Executive Vice President and CFO

GM is investing in a partnership with Peak Energy on sodium-ion battery storage technology, explicitly choosing a capital-light partnership over deploying billions in its own plant capacity for a highly competitive business.

“We turned down opportunities to put billions of capital into plants to tool up for what is already a highly competitive business”— Paul Jacobson, Executive Vice President and CFO

GM is investing $1.0-$1.5 billion this year to onshore production and expand software capability, with these costs expected to ramp further in the second half as the company approaches 2027 production.

“we expect these costs to ramp further in the second half as we approach production in 2027”— Paul Jacobson, Executive Vice President and CFO

Commodity spot rates that rose after the Q1 call have eased somewhat recently, and management expects the improvement to begin benefiting results starting in the fourth quarter and into early 2027 due to cost-flow lags.

“recent improvements should begin to benefit us in the fourth quarter and into early 2027”— Paul Jacobson, Executive Vice President and CFO

Shipping disruptions tied to Middle East conflict significantly impacted GM International wholesales in the quarter, and management now expects continued softness in that region reflecting the dynamic geopolitical environment.

“we continue to expect some softness in GM International ex China, reflecting the dynamic environment in the Middle East.”— Paul Jacobson, Executive Vice President and CFO