Overview
- GM reported better‑than‑expected second‑quarter results with roughly $48 billion in revenue and $3.57 in adjusted EPS, and lifted full‑year adjusted EPS guidance to $12–$14 and adjusted EBIT to $14–$16 billion.
- The company generated about $5.03 billion of automotive free cash flow in the quarter, which it used to repurchase roughly $2 billion of stock and about 25 million shares, cutting diluted share count by roughly 35% since 2023.
- Adjusted EBIT rose about 30% year‑over‑year to $3.94 billion and margins expanded in North America, where full‑size trucks and SUVs and tighter incentive discipline drove much of the improvement.
- GAAP results were reduced by a one‑time $2.3 billion charge tied to a reset of parts of GM’s EV strategy, which led to a year‑over‑year drop in net income on a GAAP basis.
- Analysts responded with higher price targets and estimates, and management pointed to growing deferred revenue, software and services subscriptions, expanded insurance operations and defense contracts as the next sources of higher‑margin growth.