General Motors Company (GM Quick QuoteGM - Free Report) used its second-quarter 2026 earnings call to press a forward-looking message. Management raised full-year guidance again and argued that stronger North American execution, software growth and tighter EV economics are setting up a better 2027.

The quarter itself delivered a strong performance. Adjusted EPS of $3.57 beat the Zacks Consensus Estimate of $3.13. Revenues of $48.03 billion topped the consensus mark of $46.56 billion.

General Motors Company Price, Consensus and EPS Surprise

General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote

GM Raises Guidance Again

Chief financial officer Paul Jacobson said GM’s first-half performance gave management enough confidence to lift all key 2026 targets. The company now expects EBIT-adjusted of $14 billion to $16 billion, adjusted EPS of $12 to $14 and adjusted automotive free cash flow of $9.5 billion to $11.5 billion.

Jacobson said the higher outlook reflects improved pricing and warranty assumptions, along with a slightly better commodity view. GM’s CFO also stressed that the revised guidance does not assume a material escalation in the Middle East or a significant rise in inflationary pressures from current levels.

The quarter provided the backdrop for that move. Adjusted EPS rose from $2.53 a year earlier, while revenues increased 1.9% and EBIT-adjusted climbed 29.8% to $3.9 billion.

General Motors Leans on Trucks and Onshoring

Chair and CEO Mary Barra made full-size pickups and SUVs the centerpiece of the call. She said North American demand remains steady, pricing is holding and GM’s share of the U.S. full-size pickup market stood above 42% in the first half.

Barra also framed the next-generation Chevrolet Silverado and GMC Sierra launch as a major 2027 lever. The trucks begin reaching showrooms in December, with improved ride quality, towing, power and design, while GM plans to maintain record production volumes during the launch.

On tariffs, management argued that onshoring is becoming both an offensive and defensive move. Barra said GM is bringing U.S. production capacity to more than 2 million units starting next year, while Jacobson said it still expects gross tariff costs of $2.5 billion to $3.5 billion for 2026.

GM’s EV Reset Nears a Turning Point

Jacobson gave investors one of the clearest updates on GM’s EV restructuring. In the second quarter, the company recorded $2.3 billion of incremental EV-related charges, including supplier cash charges, battery supply-chain cash charges and noncash impairments.

He said GM has now recorded $10.9 billion of EV-related charges since the second half of 2025, with about $7.2 billion carrying a cash impact. Through the end of the second quarter, GM had paid $4.5 billion of that amount.

The message from management was that the largest cash pain is getting close to the rearview mirror. Jacobson said the actions substantially complete the material cash charges GM expects as it aligns EV capacity with regulatory and demand changes, while still targeting a $1 billion to $1.5 billion improvement in full-year EV losses.

General Motors Pushes Software and Side Businesses

Jacobson and Barra repeatedly returned to software and services as a margin story rather than just a technology story. Barra said GM expects 1 million new subscriptions this year, supporting more than $3 billion in recognized software and services revenues.

Jacobson added that deferred revenues tied to the OnStar digital business reached $6.3 billion, up almost 50% from a year ago, while second-quarter recognized revenues rose 20% to $800 million. He said that growth should continue into 2027 as Super Cruise expands across more pickup trims.

Management also highlighted GM Defense and GM Insurance as longer-cycle contributors. Barra said GM Defense expects nearly $700 million in 2026 revenues and is targeting positive EBIT this year, while describing both businesses as ways to make GM less cyclical over time.

GM Q&A Sharpens the 2027 Bridge

Analysts used the Q&A to test how much of management’s 2027 confidence rests on pricing, trucks and software. A UBS analyst asked about Super Cruise scaling and pricing, and Barra responded that GM sees high attach rates after included trial periods and remains optimistic as the feature spreads across more vehicles.

A Barclays analyst pressed on whether the guidance raise should have been larger. Jacobson answered cautiously, saying commodity assumptions have stabilized rather than turned favorable, while better pricing and warranty trends are helping offset back-half cost pressures.

A Wolfe Research analyst and a JPMorgan analyst both pushed on the 2027 bridge. Jacobson said margin expansion drivers such as warranty, EV profitability and digital revenues are multi-year in nature, while onshoring costs should be more balanced next year as production ramps.

General Motors Keeps Stressing Execution

Barra’s closing message was consistent with the rest of the call. She described it as a company with a stronger vehicle portfolio, expanding software revenues and additional growth avenues outside the traditional auto cycle.

That framing mattered because management did not present 2027 as a leap of faith. Instead, it tied next year’s outlook to trucks, tariff mitigation, subscription growth, lower EV drag and continued share repurchases.

GM’s Zacks Signals

GM carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of B, Momentum Score of A and VGM Score of A. Under the Zacks framework, the Style Scores are designed to complement the rank, with stronger letter grades indicating more attractive value, growth and momentum characteristics over the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

That combination points to favorable style characteristics, but the Zacks system places the greatest weight on earnings estimate revisions. A Zacks Rank #3 can still be held, and the stronger Style Scores improve the profile, though the rank can change as analysts revise estimates after the quarter.