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 readRaised 2026 guidance across all key metricsGM 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
Op margin3.04%
reported
What changed this quarter
01
Guidance
Raised 2026 guidance across all key metrics
Guidance tone
02
Margins
North America margin back to 8-10% target
Reported gross margin was 7.61%, reinforcing the quarter's better-than-guided profitability.
03
Demand
Estimating 160,000 incremental Super Cruise units
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.
04
Capex
Investing $1-1.5 billion to onshore production
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.
AI, capex & demand read
AI
Platform & monetization
Management mentioned using artificial intelligence as a tool to find problems earlier and improve product quality, aiding warranty cost reduction.
Demand
Bookings & conversion
Estimating 160,000 incremental Super Cruise units. 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.
Capex
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.
Tone · 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.
Supply-chain alpha
A1
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.
“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.”
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.
“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.”
GM is partnering with Lockheed to scale defense production, potentially increasing LMT's supply chain capacity and revenue from shared defense programs.
“We are also working with Lockheed Martin and other leading companies to expand speed, scale, and resilience in the defense industrial base.”
… and customers, including the US State Department and Secret Service, as well as Canada, Cutter, Brazil, and other allies. And we're also supplying battery propulsion technology to lunar outposts, which has been awarded $220 million NASA contract to build the next generation lunar terrain vehicle. GM Defense expects 2026 revenue to grow to almost $700 million and is targeting positive results on an EBIT basis for this year, while also building a backlog of future business. We are expecting a top-line revenue CAGR for GM Defense of more than 30% over the next several years with double-digit margins. This includes ISV awards that are expected to exceed $1 billion based on the U.S. Army's procurement objectives. We are also working with Lockheed Martin and other leading companies to expand speed, scale, and resilience in the defense industrial base. We're focusing our efforts on strengthening supply chain management, improving manufacturing readiness and expanding production capacity in ways that serve the United States and its allies well. Over time, all of this should make GM Defense a more meaningful and diversified contributor to our earnings. With that, I'll turn it over to Paul.
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.
Paul JacobsonExecutive Vice President and Chief Financial Officer
… it reflects two quarters of higher costs rather than just one. In addition, spot rates continued to rise after our first quarter earnings call, and while they have eased somewhat recently, several commodities remain above those levels. Also, given the lag in how these costs flow through our results, the recent improvements should begin to benefit us in the fourth quarter and into early 2027. On DRAM specifically, 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. Separately, we're also investing approximately $1 to $1.5 billion this year to onshore production to the U.S., strengthen our supply chain, and expand our software capabilities. We incurred approximately $400 million in the first half, and we expect these costs to ramp further in the second half as we approach production in 2027. Finally, turning to our international operations, we continue to expect some softness in GM International X China, reflecting the dynamic environment in the Middle East. From a cadence perspective, we expect the fourth quarter to be somewhat weaker …
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.
“We have a strong relationship with Micron, and we also have one with Samsung as well.”
Yes, good morning. Thank you very much for taking the questions. Is there more color you can share on the memory supply agreement and what that means for cost and availability going forward, including to what extent it gives GM a clear view on what memory costs are going to be in 2027?
Well, we're very pleased that we have a strong relationship with Micron, and we also have one with Samsung as well. And these are strategic engagements and long-term engagements that go back to 2022, as I mentioned. As we went through the semiconductor shortage and the chip shortage, we really worked to make sure that we've got direct relationships and stable supply. And I think the relationships we've built are providing value to us for sure as we move forward. We haven't disclosed specific pricing, but I think we've got a good relationship with both suppliers. And we're going to continue to work with them and align on next generation memory technology so we can jointly develop technology roadmaps that I think will enable us to not only enable future product innovation but also performance improvements as we go forward. So I think we've got the right line of sight with the strategic partnerships we have and we're going to continue to build on those.
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