GM Raises 2026 Guidance for Second Time, Declares $0.18 Dividend as Q2 EBIT Surges 29.8%

General Motors (NYSE: GM) raised its full-year 2026 profit forecast for the second time this year on Tuesday, reporting Q2 adjusted EPS of $3.57, up 41.3% from $2.53 in the prior-year period, on revenue of $48.0 billion, a 1.9% year-over-year increase. The Board of Directors also declared a quarterly cash dividend of $0.18 per share, payable September 17, 2026 to stockholders of record at the close of trading on September 4, 2026.

Q2 2026 Results

• Revenue: $48.0 billion in Q2 2026, up from $47.1 billion in Q2 2025
• EBIT-adjusted: $3.94 billion, a 29.8% year-over-year increase, with EBIT-adjusted margin expanding 1.8 percentage points to 8.2%
• GAAP net income attributable to stockholders: $1.3 billion, down 31.1% from $1.9 billion in Q2 2025, reflecting one-time charges tied to the company's electric vehicle realignment
• GM North America EBIT-adjusted: $3.45 billion, up 42.7% year-over-year, with GMNA EBIT-adjusted margin widening 2.5 percentage points to 8.6%
• Adjusted automotive free cash flow: $5.03 billion, up 78.0% from $2.83 billion in Q2 2025

What Drove the Results

The divergence between GAAP net income and adjusted profitability is the headline tension in GM's Q2 report. GAAP diluted EPS fell to $1.41 from $1.91 a year ago, a 26.0% decline, as EV-related realignment charges weighed on reported income. By contrast, adjusted EPS of $3.57 reflected the underlying operational strength, with GM North America driving the bulk of the improvement through higher margins.

GM Financial contributed adjusted earnings before taxes of $605 million in the quarter, down 14.0% year-over-year. International operations (GMI) posted EBIT-adjusted of $190 million, a 6.6% decline, while China equity income rose 16.9% to $83 million. For the first half of 2026, total revenue reached $91.65 billion, with EBIT-adjusted of $8.20 billion, up 25.6% from the prior-year first half.

Updated 2026 Guidance

GM raised its full-year 2026 EBIT-adjusted guidance range to $14.0 billion to $16.0 billion, from a prior range of $13.5 billion to $15.5 billion. Adjusted EPS-diluted guidance was lifted to $12.00 to $14.00, up from the prior range of $11.50 to $13.50. The company now expects adjusted automotive free cash flow of $9.5 billion to $11.5 billion, compared with the previous range of $9.0 billion to $11.0 billion.

On a GAAP basis, the updated guidance reflects net income attributable to stockholders of $8.4 billion to $9.8 billion and diluted EPS of $8.98 to $10.98, incorporating adjustments recorded year to date. The company noted these figures do not include the potential impact of future special-item adjustments.

Wall Street View

Analyst sentiment heading into the report leaned constructive, with the most recent consensus carrying 19 Buy ratings and 10 Strong Buy ratings alongside 8 Hold and 2 Sell recommendations. GM shares traded at $78.32 on Tuesday, July 21, 2026, a gain of 3.32%, while the S&P 500 advanced 0.63%.

Investor Takeaway

The widening gap between GAAP net income and adjusted profitability, driven by EV realignment charges, is a key variable investors should monitor in future quarters, as the scale of those charges determines how quickly reported earnings converge with the adjusted figures underpinning GM's guidance lift. The 78.0% year-over-year jump in adjusted automotive free cash flow to $5.03 billion in Q2 signals improving capital efficiency beyond headline profit metrics, and the reinstated dividend provides a direct return-of-capital signal alongside the guidance increase.