Business & Markets
General Motors raises 2026 profit outlook after stronger pricing
General Motors raised its full-year profit forecast after reporting quarterly results supported by strong vehicle pricing, despite costs linked to pulling back from electric vehicle investments.
The US automaker reported $1.3 billion in profit, down 31 percent from the same period a year earlier. Revenue rose almost two percent to $48 billion.
North American auto sales fell during the period, but stronger pricing lifted profit margins. GM said results in North America, its largest market, were helped by record sales of full-sized pickup trucks. It also said fleet sales were strong because of demand from commercial and government customers.
GM executives pointed to strong demand in the company's core US market and to efforts to expand into businesses including insurance and defence. The company cited an expected US Army order of 10,000 infantry squad vehicles after an initial order of 1,200 vehicles. Chief Executive Mary Barra told analysts that defence revenue is expected to grow to almost $700 million in 2026.
Barra said businesses such as defence and insurance are small now but could grow, improve margins and make the company less cyclical.
The results were reduced by $2.3 billion in costs related to GM's retreat from electric vehicle investments after changes in US environmental policy under President Donald Trump. GM also recorded $177 million in China restructuring costs. Executives also cited costs from moving production to the United States because of Trump's trade policies favouring tariffs.
The company expects lower sales of some top-selling vehicles in the second half of the year as it prepares to launch updated full-sized 2027 pickup truck models.
Chief Financial Officer Paul Jacobson said consumers had been very resilient. He told CNBC that GM had not seen changes in vehicle preferences because of higher gasoline prices linked to the US-Iran war, saying it would take longer before any impact would appear.
According to the American Automobile Association, US gasoline prices rose back above $4 a gallon on Monday, reflecting renewed fighting in the Middle East.
GM maintained its forecast for a $2.5 billion to $3.5 billion hit from US tariffs enacted by Trump. On Monday, Trump ordered new 50-percent tariffs on many Canadian goods, citing what he called Canada's discriminatory levies on US items including cars. A White House fact sheet said the new tariffs would cover products including wine, hockey sticks and cement.
The United States, Canada and Mexico are negotiating a revised trade agreement. Jacobson described that agreement as a priority and said GM was confident governments would work through it.
GM raised its 2026 forecast for pre-tax operating earnings to between $14 billion and $16 billion, up by $500 million from its previous range. The company said the projection assumes no material escalation in the Middle East and no significant rise in commodity costs. It said the higher outlook partly reflects slightly better commodity cost conditions.
GM said it expects 2027 results to be better than this year's, partly because of increased supply of top-selling sport utility vehicles. GM shares rose 3.5 percent in morning trading.
Update
GM said North American results were helped by record sales of full-sized pickup trucks and strong fleet sales.
GM executives highlighted diversification into insurance and defence, including an anticipated US Army order of 10,000 infantry squad vehicles after an initial order of 1,200.
Chief Executive Mary Barra said defence revenue is expected to grow to almost $700 million in 2026.
GM recorded $2.3 billion in costs related to its retreat from electric vehicle investments and $177 million in China restructuring costs.
GM maintained its projection of a $2.5 billion to $3.5 billion hit from US tariffs.
GM shares rose 3.5 percent in morning trading.
Source note: AFP news report published on 21 July 2026 at 14:46:46 UTC.
Update
General Motors reported $1.3 billion in profit, down 31 percent from the year-ago period, and revenue rose almost two percent to $48 billion.
The company said North American results were helped by record full-sized pickup truck sales and strong fleet sales supported by commercial and government demand.
GM said results were dented by $2.3 billion in costs tied to winding down electric vehicle investments and by $177 million in China restructuring costs.
Chief Financial Officer Paul Jacobson said consumers have been resilient and that GM had not seen vehicle preferences shift because of higher gasoline prices linked to the US-Iran war.
GM maintained its estimate of a $2.5 billion to $3.5 billion full-year hit from US tariffs enacted by President Donald Trump.
Chief Executive Mary Barra said GM is moving more production back to the United States to reduce tariff exposure.
Trump ordered new 50 percent tariffs on many Canadian goods on Monday, while the United States, Canada and Mexico are negotiating a revised trade agreement.
GM raised its 2026 pre-tax operating earnings forecast to $14 billion to $16 billion, up $500 million from the prior range.
GM said the forecast assumes no material escalation in the Middle East and no significant jump in commodity costs.
GM said it expects 2027 results to be better than this year's, partly because of increased supply of top-selling sport utility vehicles.
GM shares rose 0.7 percent in pre-market trading.
Source note: AFP news report published on 21 July 2026 at 12:18:05 UTC.
Update
General Motors reported revenue of $48 billion, up almost two percent.
The 2026 pre-tax operating earnings forecast was raised to $14 billion to $16 billion.
The forecast assumes no material escalation in the Middle East and no significant jump in commodity costs.
GM recorded $2.3 billion in costs tied to its electric vehicle retreat and $177 million in China restructuring costs.
GM said North American results were boosted by record sales of full-sized pickup trucks and strong fleet sales.
GM said it expects 2027 results to be better than 2026 results.
Source note: AFP news report published on 21 July 2026 at 11:15:55 UTC.
Update
General Motors reported $1.3 billion in profit, down 31 percent from the year-earlier period.
The company raised its full-year profit forecast after quarterly results supported by strong vehicle pricing.
The source said strong pricing offset costs tied to winding down electric vehicle investments.
North American auto sales fell during the period.
The source said GM's results topped analyst estimates.
Source note: AFP news report published on 21 July 2026 at 10:42:01 UTC.
Uncertainty notes
GM's raised outlook depends on assumptions including no material escalation in the Middle East and no significant rise in commodity costs.
The expected US Army order and defence revenue figures are company projections.
Source
AFP news report published on .