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GM
FY2026 Q2
Improving
General Motors Company earnings call
Buzzberg read
Raised 2026 guidance across all key metrics
GM reported strong Q2 results, raised full-year 2026 guidance for the second time, and gave an optimistic multi-year outlook anchored by a new full-size pickup launch, expanding software/services revenue, and cost improvements across warranty, EV losses, and regulatory credits. Management highlighted ongoing supply-chain investments and strategic partnerships with memory suppliers Micron and Samsung. GM raised FY2026 EBIT guidance to $14-16B, EPS to $12-14, and FCF to $9.5-11.5B, citing better pricing, warranty improvements, and cost control.
Buzzberg read Raised 2026 guidance across all key metrics GM reported strong Q2 results, raised full-year 2026 guidance for the second time, and gave an optimistic multi-year outlook anchored by a new full-size pickup launch, expanding software/services revenue, and cost improvements across warranty, EV losses, and regulatory credits. Management highlighted ongoing supply-chain investments and strategic partnerships with memory suppliers Micron and Samsung. GM raised FY2026 EBIT guidance to $14-16B, EPS to $12-14, and FCF to $9.5-11.5B, citing better pricing, warranty improvements, and cost control. Read full analysisCollapse analysis
GM reported strong Q2 results, raised full-year 2026 guidance for the second time, and gave an optimistic multi-year outlook anchored by a new full-size pickup launch, expanding software/services revenue, and cost improvements across warranty, EV losses, and regulatory credits. Management highlighted ongoing supply-chain investments and strategic partnerships with memory suppliers Micron and Samsung. GM raised FY2026 EBIT guidance to $14-16B, EPS to $12-14, and FCF to $9.5-11.5B, citing better pricing, warranty improvements, and cost control.
- Full-size pickup market share stands at >42%, 10+ pp above closest rival, with record production planned during the new Silverado/Sierra launch.
- Deepened memory supply relationships with Micron and Samsung to lock in DRAM availability and mitigate inflation.
- Software/services deferred revenue reached $6.3B, with digital revenue (including Super Cruise) expected to exceed $3B in FY2026.
Revenue$48.026B+10% QoQ
EPS$3.57-4% QoQ
Gross margin7.61%Reported
Operating margin3.04%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Margins
North America margin back to 8-10% target
Demand
Estimating 160,000 incremental Super Cruise units
Show 3 more callouts
Capex
Investing $1-1.5 billion to onshore production
Other
Warranty improvement tracking above previous assumption
Risk
EV restructuring material cash charges substantially complete
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $48.026B | +10% QoQ |
| EPS | $3.57 | -4% QoQ |
| Gross margin | 7.61% | Reported |
| Operating margin | 3.04% | Reported |
| Free cash flow | $4.412B | Reported |
| Capex | $1.942B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $12.00–$14.00 | $13.00 | Raised |
| Free cash flow | FY2026 | $9.5B–$11.5B | $10.5B | Raised |
| Operating margin | FY2026 | $14B–$16B | $15B | Raised |
AI, capex & demand read
Management read
confident
Management was confident, emphasizing strong execution, raised guidance for the second time this year, and expressed optimism about 2027 growth despite ongoing headwinds like tariffs and commodity inflation.
Management AI read
Management mentioned using artificial intelligence as a tool to find problems earlier and improve product quality, aiding warranty cost reduction.
Investment and capacity
Management stated they are investing approximately $1 to $1.5 billion this year to onshore production, strengthen supply chain, and expand software capabilities, with costs ramping in the second half.
all 3 named companies below
Companiesreturns since call
Partners
Partners
Mary Barra
GM is partnering with Lockheed to scale defense production, potentially increasing LMT's supply chain capacity and revenue from shared defense programs.
Evidence
“We are also working with Lockheed Martin and other leading companies to expand speed, scale, and resilience in the defense industrial base.”
Suppliers
Suppliers
Paul Jacobson
GM is locking in long-term memory supply with Micron and Samsung amid DRAM cost inflation, signaling pricing visibility and potential competitive edge in vehicle electronics. — Memory is a growing input cost in vehicles; by securing strategic supply agreements, GM mitigates future DRAM inflation risks and gives the memory suppliers multi-year automotive revenue visibility.
Evidence
“Our expanded collaboration with Micron strengthens access to critical memory technologies and deepens integration across our vehicle platforms, reinforcing supply availability for the long term.”
Suppliers
Mary Barra
GM is locking in long-term memory supply with Micron and Samsung amid DRAM cost inflation, signaling pricing visibility and potential competitive edge in vehicle electronics. — Memory is a growing input cost in vehicles; by securing strategic supply agreements, GM mitigates future DRAM inflation risks and gives the memory suppliers multi-year automotive revenue visibility.
Evidence
“We have a strong relationship with Micron, and we also have one with Samsung as well.”
External signals
Supply-chain alpha · 2returns since call
GM is locking in long-term memory supply with Micron and Samsung amid DRAM cost inflation, signaling pricing visibility and potential competitive edge in vehicle electronics.
GM is launching the next-generation Silverado/Sierra at three assembly plants and three engine plants simultaneously while maintaining record production, creating significant operational complexity.
Evidence
“We plan to maintain record production volumes year over year while launching the trucks at three assembly plants, along with our next generation V8 engines, which are launching at three propulsion plants.”
Methodology & coverage
Management-only analysis. All 3 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.