GM's stock bounces back as revenue grows for the first time in over a year

By Tomi Kilgore

GM beat earnings expectations, excluding a $1.9 billion EV-related cash charge, and raised its full-year outlook

GM's stock rises after a beat-and-raise earnings report, as revenue grows to snap a four-quarter streak of declines.

Shares of General Motors rose in early Tuesday trading after the automobile maker beat second-quarter earnings expectations and raised its full-year outlook, snapping a four-quarter streak of revenue declines.

CEO Mary Barra wrote in a shareholder letter that "customer demand in North America remains strong," even as deliveries and market share continued to decline, and as sales incentives remained below the industry average.

The stock (GM) rose 1.6% in premarket trading. That should take the stock back above the 200-day moving average, which comes in at $76.22 on Tuesday, according to FactSet data.

On Monday, the stock had closed below the 200-DMA, a widely followed long-term trend tracker, for the first time in a year, to warn that a downtrend may have started. The stock closed Monday 12.2% below its Jan. 27 record close of $86.38.

Net income fell 31.1% from a year ago to $1.31 billion. But when excluding nonrecurring items, such as a $1.9 billion cash charge related to the restructuring of electric-vehicle operations, adjusted earnings per share rose to $3.57 from $2.53 to top the average analyst EPS estimate compiled by FactSet of $3.19.

And for 2026, GM raise its adjusted EPS guidance range to $12 to $14 from $11.50 to $13.50.

Revenue for the latest quarter grew 1.9% to $48.03 billion, above the FactSet consensus of $47.01 billion, to mark the first year-over-year growth since the first quarter of 2025.

But global deliveries fell 7.2% to 1.43 million vehicles, a third straight quarterly decline. That included a 3.4% drop in North America deliveries - U.S.-only deliveries were down 4.3% - and declines in every region except South America, which was flat.

And global market share dipped to 8.1% from 8.3%, with North America market share falling to 15.8% from 16.4%, including a drop in U.S. share to 16.6% from 17.4%.

Incentives as a percentage of manufacturer's suggested retail price, or MSRP, for the quarter averaged 4.7% per vehicle, below the industry average of 6.3%.

GM's stock has lost 6.8% in 2026 through Monday, while shares of rival Ford Motor have gained 6.6% and the S&P 500 index SPX has advanced 8.7%.

-Tomi Kilgore

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07-21-26 0821ET