GM Raises 2026 Operating Profit Forecast After Strong Q2 Earnings

General Motors (GM) revised its 2026 operating profit (EBIT) forecast upward after its second-quarter financial results exceeded expectations. The company reported a significant improvement in profitability, driven by strong vehicle sales and cost control. GM's second-quarter net income rose 14% year-over-year to $3.1 billion, supported by sustained demand for trucks and SUVs, particularly in North America. The company reported adjusted operating profit of $4.5 billion for the same period. Management raised its 2026 adjusted operating profit forecast to a range of $13.5-14.5 billion, up from the previous estimate of $12-13 billion. This revision reflects the strength of GM's cash flow from internal combustion engine vehicles, despite ongoing investments in electric vehicles. The company also narrowed its 2026 free cash flow forecast to $8-10 billion. GM announced a new $5 billion share buyback program aimed at increasing shareholder returns while continuing its spending on the electric vehicle transition. This is not investment advice.