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Q2 Earnings: Guidance Upgrades Push These 3 Stocks Higher
Key Takeaways
JNJ, ABT, and GM have all recently raised guidance.
Each has seen post-earnings strength, with near-term momentum supported by the updated outlooks.
Guidance upgrades are a solid indicator of fundamental business strength.
The 2026 Q2 earnings season will continue at a rapid pace in the coming weeks, with many notable companies on the reporting docket. The big banks helped kick the period off positively, though post-earnings reactions haven’t been great for all that have reported.
But General Motors (GM - Free Report) , Abbott Laboratories (ABT - Free Report) , and Johnson & Johnson (JNJ - Free Report) have been nice standouts so far, all raising guidance and seeing strength post-earnings.
Guidance upgrades are generally one of the most bullish things to watch for in earnings season, as renewed outlooks can often lead to positive EPS revisions, the strongest driver of a stock’s near-term movement.
General Motors Raises Again
General Motors posted a double-beat relative to our consensus expectations, with EPS reflecting a positive surprise of 14%. Sales of $48.0 billion came in 3% above our consensus sales estimate.
The company raised its full-year 2026 EBIT adjusted guidance for the second time this year, with adjusted EPS guidance also getting raised. And for the cherry on top, it also lifted its automotive operating cash flow outlook, overall reflecting a rock-solid release.
EPS revisions for its current fiscal year got an additional boost from the lifted outlook, with the trend overall remaining positive for the entire last year. The profitability picture of automotive players is always the key driver behind sentiment, and the updated guidance across key profitability metrics remains a huge positive for GM’s share momentum overall.
Image Source: Zacks Investment Research
Abbott Laboratories Bounces Back
Abbott Laboratories similarly posted a double-beat relative to our consensus expectations, with adjusted EPS of $1.31 reflecting a 2.3% beat while sales of $12.6 billion came in roughly 1% ahead of expectations.
The company lifted its adjusted EPS guidance to $5.45-$5.60, modestly higher than the previous $5.38-$5.58 per share range. It also reaffirmed its current-year comparable sales guidance, now expecting accelerating revenue and earnings growth in the second half of the year.
The stock has had a rough YTD performance overall, but the release has helped keep momentum going in a positive direction. Importantly, it reflects the first instance of the stock seeing positive gains over the last four quarters.
The EPS revisions picture for its current fiscal year has finally started to show positive momentum following the release, with the more recent revisions definitely holding more weight from a near-term perspective. Continued positivity on the revisions front will support further share momentum, with the current 17.3X forward 12-month earnings multiple trading at a significant discount to the 23.3X five-year median.
Image Source: Zacks Investment Research
Johnson & Johnson Keeps Cruising
Johnson & Johnson beat on both the top and bottom line in its recent release, continuing a streak of earnings excellence. In fact, the company has posted a double-beat in nine consecutive quarters.
Strong operational performance led the company to increase both its current fiscal year sales and adjusted EPS guidance, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history.
EPS revisions for its current fiscal year have followed the upgrade, continuing the bullish trend established over the past year. The stock overall reflects a highly defensive investment given its consistent revenue-generating nature throughout many economic cycles.
Image Source: Zacks Investment Research
Bottom Line
Guidance upgrades are always a bullish development to watch for in earnings releases, commonly leading to positive post-earnings share reactions. While it isn’t a guarantee that a stock will pop just because it raised its outlook, it still remains a favorable factor from a fundamental standpoint. Companies raising guidance, particularly on the earnings front, always deserve some level of attention from investors.
All three stocks above - General Motors (GM - Free Report) , Abbott Laboratories (ABT - Free Report) , and Johnson & Johnson (JNJ - Free Report) – have recently upped their outlooks. While they may not be as flashy as high-flying tech stocks amid the AI craze, their improving business fundamentals can’t be overlooked.
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Image: Bigstock
Q2 Earnings: Guidance Upgrades Push These 3 Stocks Higher
Key Takeaways
The 2026 Q2 earnings season will continue at a rapid pace in the coming weeks, with many notable companies on the reporting docket. The big banks helped kick the period off positively, though post-earnings reactions haven’t been great for all that have reported.
But General Motors (GM - Free Report) , Abbott Laboratories (ABT - Free Report) , and Johnson & Johnson (JNJ - Free Report) have been nice standouts so far, all raising guidance and seeing strength post-earnings.
Guidance upgrades are generally one of the most bullish things to watch for in earnings season, as renewed outlooks can often lead to positive EPS revisions, the strongest driver of a stock’s near-term movement.
General Motors Raises Again
General Motors posted a double-beat relative to our consensus expectations, with EPS reflecting a positive surprise of 14%. Sales of $48.0 billion came in 3% above our consensus sales estimate.
The company raised its full-year 2026 EBIT adjusted guidance for the second time this year, with adjusted EPS guidance also getting raised. And for the cherry on top, it also lifted its automotive operating cash flow outlook, overall reflecting a rock-solid release.
EPS revisions for its current fiscal year got an additional boost from the lifted outlook, with the trend overall remaining positive for the entire last year. The profitability picture of automotive players is always the key driver behind sentiment, and the updated guidance across key profitability metrics remains a huge positive for GM’s share momentum overall.
Image Source: Zacks Investment Research
Abbott Laboratories Bounces Back
Abbott Laboratories similarly posted a double-beat relative to our consensus expectations, with adjusted EPS of $1.31 reflecting a 2.3% beat while sales of $12.6 billion came in roughly 1% ahead of expectations.
The company lifted its adjusted EPS guidance to $5.45-$5.60, modestly higher than the previous $5.38-$5.58 per share range. It also reaffirmed its current-year comparable sales guidance, now expecting accelerating revenue and earnings growth in the second half of the year.
The stock has had a rough YTD performance overall, but the release has helped keep momentum going in a positive direction. Importantly, it reflects the first instance of the stock seeing positive gains over the last four quarters.
The EPS revisions picture for its current fiscal year has finally started to show positive momentum following the release, with the more recent revisions definitely holding more weight from a near-term perspective. Continued positivity on the revisions front will support further share momentum, with the current 17.3X forward 12-month earnings multiple trading at a significant discount to the 23.3X five-year median.
Image Source: Zacks Investment Research
Johnson & Johnson Keeps Cruising
Johnson & Johnson beat on both the top and bottom line in its recent release, continuing a streak of earnings excellence. In fact, the company has posted a double-beat in nine consecutive quarters.
Strong operational performance led the company to increase both its current fiscal year sales and adjusted EPS guidance, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history.
EPS revisions for its current fiscal year have followed the upgrade, continuing the bullish trend established over the past year. The stock overall reflects a highly defensive investment given its consistent revenue-generating nature throughout many economic cycles.
Image Source: Zacks Investment Research
Bottom Line
Guidance upgrades are always a bullish development to watch for in earnings releases, commonly leading to positive post-earnings share reactions. While it isn’t a guarantee that a stock will pop just because it raised its outlook, it still remains a favorable factor from a fundamental standpoint. Companies raising guidance, particularly on the earnings front, always deserve some level of attention from investors.
All three stocks above - General Motors (GM - Free Report) , Abbott Laboratories (ABT - Free Report) , and Johnson & Johnson (JNJ - Free Report) – have recently upped their outlooks. While they may not be as flashy as high-flying tech stocks amid the AI craze, their improving business fundamentals can’t be overlooked.