GM Raised Its 2026 Profit Outlook to as Much as $16 Billion -- the Second Raise This Year. Here's the Part of the Business That Turned.
The automaker's second guidance raise of the year didn't come from where most investors would expect.
Overview
General Motors (NYSE: GM) raised its full-year profit outlook on Tuesday for the second time this year, and the stock rose about 5% in response.
The automaker now expects 2026 adjusted earnings before interest and taxes (EBIT) of $14 billion to $16 billion -- up from a prior range of $13.5 billion to $15.5 billion. It also lifted its adjusted earnings per share forecast to $12 to $14, from $11.50 to $13.50, and raised its outlook for adjusted automotive free cash flow to $9.5 billion to $11.5 billion. Through six months, adjusted earnings per share of $7.27 is already running 37% ahead of last year.
Details
Guidance raises usually trace back to a hot product or a booming market. GM's is more interesting than that. Management pointed to steady vehicle pricing, falling warranty costs, and shrinking losses in the electric-vehicle business the company has spent the past year pulling back from.
Source
Originally published at www.fool.com.