General Motors (NYSE: GM) shares rebounded after the company released its 2026 Q2 financial results. After finding support near the 200-day simple moving average, the stock rose to about $80. In a July 21 analysis, Morgan Stanley said it is bullish on General Motors’ potential in its North American business. In Q2, adjusted earnings per share (EPS) came in at $3.57, up 41.3% from the same period last year, beating Zacks consensus expectations.
General Motors Q2 2026 EPS: Adjusted $3.57 Per Share Beats Estimates by 14%
General Motors’ key financial figures for 2026 Q2 are as follows:
Adjusted EPS: $3.57 (up 41.3% year over year), about 14% above Zacks consensus of $3.13
Quarterly revenue: $48.03 billion (up 1.9% year over year), about 3.15% above market expectations of $46.56 billion
Adjusted EBIT: $3.94 billion (up 29.8% year over year)
Adjusted EBIT margin: 8.2% (6.4% in the same period last year)
Global wholesale vehicle volume: about 990k units (about 974k units in the same period last year)
The main drivers behind the earnings improvement include: a strong pricing strategy (contributing about $700 million to adjusted EBIT); cost efficiency (contributing about $300 million, driven by lower warranty costs, reduced tariff-related risks, and savings on emissions-related regulatory costs); and tightly managed incentive mechanisms. Some gains were offset by commodity inflation, logistics costs, higher memory chip costs, and manufacturing costs from the return of production to the United States.
Core performance in North America: Adjusted EBIT of $3.45 billion
General Motors’ North American business delivered a particularly strong quarter: revenue rose 1.1% year over year to $39.91 billion; wholesale volume was about 848k vehicles, staying relatively stable; adjusted EBIT increased 42.7% year over year to $3.45 billion, beating Zacks’ typical expectations of $3.12 billion; and adjusted EBIT margin rose 250 bps to 8.6%, supported by stronger pricing, tighter incentive mechanisms, and improved operating efficiency.
Electric vehicle wholesale volume fell by about 31,000 units, but increased shipments of internal combustion vehicles offset the decline. U.S. dealer inventory at quarter-end was about 511k units, down about 3% year over year, and still within General Motors’ target inventory range.
International business and China joint ventures: Strong in South America, adjusted EBIT beats expectations
For General Motors’ international business, revenue increased 11% year over year to $3.69 billion. Wholesale vehicles rose from 125k units to 142k units, with strong performance in South American markets supporting revenue growth; however, shipping disruptions in the Middle East affected wholesale volume. Adjusted EBIT fell 6.6% to $190 million, but still beat consensus expectations of $176 million. For China joint ventures, equity income was $83 million (up 16.9% year over year). Driven by cost efficiency and improvements in product mix, the China business has achieved profitability for the seventh consecutive quarter.
Morgan Stanley: Bullish on North America’s core business potential and continued pricing discipline
In its latest assessment on July 21, Morgan Stanley highlighted General Motors’ ability to outperform adjusted EBIT expectations while maintaining pricing discipline and improving operating efficiency. The analysis focused on the strong performance of General Motors’ North American core business, viewing it as a standout amid ongoing uncertainty in the auto industry (including changes in consumer demand, rising production costs, supply-chain risks, and the costs of transitioning to electric vehicles).
This strong earnings report provided fresh technical and fundamental catalysts for GM shares’ rebound after support near the 200-day moving average.
FAQ
What are General Motors (GM) Q2 2026 EPS and revenue?
General Motors’ adjusted earnings per share (EPS) for Q2 2026 was $3.57, up 41.3% year over year, about 14% above Zacks consensus expectations of $3.13. Quarterly revenue was $48.03 billion, up 1.9% year over year, about 3.15% above market expectations. Adjusted EBIT rose 29.8% year over year to $3.94 billion, with the EBIT margin increasing from 6.4% to 8.2%.
What is General Motors’ adjusted EBIT for Q2 2026 in North America?
General Motors’ adjusted EBIT for Q2 2026 in North America was $3.45 billion, up 42.7% year over year, beating Zacks’ expectation of $3.12 billion. Adjusted EBIT margin increased 250 bps to 8.6%. U.S. dealer inventory at quarter-end was about 511k units, down 3% year over year, and still within General Motors’ target range.
What is Morgan Stanley’s outlook on General Motors (GM) stock?
In its July 21, 2026 analysis, Morgan Stanley was bullish on General Motors’ North American core business, emphasizing the company’s ability to maintain pricing discipline and improve operating efficiency—while exceeding EBIT expectations—amid challenges the auto industry continues to face. After finding support near the 200-day moving average, GM shares rebounded to about $80.
