GM Raises 2026 Profit Outlook to $16 Billion, Driven by Improving EV Business

General Motors raised its full-year 2026 profit outlook for the second time this year, now expecting adjusted EBIT of $14 billion to $16 billion, up from $13.5-$15.5 billion. The stock rose about 5% on the news. While Q2 revenue rose only 1.9% to $48 billion and net income fell 31% due to $2.3 billion in EV realignment charges, adjusted earnings per share jumped 41% to $3.57. The key driver was improvement in the electric vehicle business, where losses are expected to shrink by $1-$1.5 billion this year. North America posted an 8.6% EBIT-adjusted margin, up 2.5 points, with steady pricing at $52,000 average transaction price and falling warranty costs. GM trades at roughly 6 times guided earnings.