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GM Beats Q2 Estimates, Raises Full‑Year Adjusted EPS Forecast

The results point to stronger cash returns and a shift toward higher‑margin software, services, insurance and defense as drivers of future profit growth.

Overview

  • GM reported adjusted Q2 EPS of $3.57 on roughly $48 billion in revenue and raised full‑year adjusted EPS guidance to $12–$14 per share.
  • The company said first‑half EPS is the highest in its history and Q2 automotive free cash flow jumped about 78% to roughly $5 billion, enabling heavy share repurchases.
  • GM repurchased about $2 billion of stock in the quarter, retiring roughly 25 million shares and cutting diluted shares by about 35% since 2023.
  • GAAP results included a one‑time $2.3 billion charge tied to a scaled‑back EV plan that led to a roughly 31% year‑over‑year decline in GAAP net income.
  • Analysts raised price targets after the report and highlighted GM’s fast‑growing software and services business (deferred revenue $6.3 billion, target $7.5 billion), plus expanding insurance and defense units, as potential re‑rating catalysts.