GM CFO Paul Jacobson on Q2 results, consumer demand and tariffs impact
Speakers
Paul Jacobson
— CFO, General Motors
Becky Quick
— Co-Anchor, Squawk Box
Summary
General Motors CFO Paul Jacobson discusses strong Q2 earnings beat, raised full-year guidance, resilient consumer demand particularly in trucks, and the impact of tariffs. He highlights GM's consistent execution, inventory discipline, and aggressive share buybacks, arguing the stock is undervalued.
- GM beats Q2 EPS estimates ($3.57 vs $3.20) and revenue ($48B vs $47B)
- Raised full-year earnings outlook to $12-$14 per share and increased free cash flow forecast
- Consumer demand remains resilient with no shift in vehicle preference despite higher gas prices
- GM's trucks and full-size SUVs selling as fast as produced, with 42% market share in trucks
- Expects minimal impact from newly announced tariffs, optimistic on USMCA resolution
- CFO emphasizes strong balance sheet and aggressive buybacks (retired over 35% of shares since 2023)
- Stock trades at less than 6x 2026 earnings, seen as a bargain
Ideas
GM stock a bargain, aggressive buybacks.
GM has delivered consistent strong financial performance, with inventory and incentive discipline, resilient consumer demand, a strong balance sheet, and aggressive share buybacks (retired over 35% of diluted shares since 2023). The stock trades at a low P/E and high free cash flow yield, making it a great bargain.
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This CNBC video, published July 21, 2026, features Paul Jacobson discussing GM. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Paul Jacobson · Tickers: GM