GM heads into Q2 report with earnings growth in focus

General Motors is scheduled to report second-quarter results ahead of Tuesday’s market open, giving investors a fresh read on how the automaker is handling costs, pricing and tariffs. The headline number to watch is profit, since analysts expect earnings growth even as revenue is projected to be slightly lower than a year ago.

Average estimates compiled by LSEG call for adjusted earnings per share of $3.20 and revenue of $47.01 billion. Adjusted earnings per share is a profit measure that strips out some items and shows how much profit is attributed to each share.

If GM matches those estimates, adjusted earnings per share would be up more than 26% from the same quarter last year, while revenue would be down 0.2% year over year, according to the LSEG figures.

What analysts expect

• Adjusted earnings per share: $3.20, according to LSEG average estimates
• Revenue: $47.01 billion, according to LSEG average estimates
• Management call: 8:30 a.m. ET Tuesday

The comparison point is GM’s second quarter of 2025. The company reported $47.12 billion in revenue, net income attributable to shareholders of $1.9 billion, and adjusted earnings before interest and taxes of $3.04 billion in that period.

Adjusted earnings before interest and taxes, often shortened to adjusted EBIT, is a measure companies use to show operating profit before financing costs and taxes, after certain adjustments. Investors use it to judge how the core business is performing, though it is separate from net income under standard accounting rules.

Tariffs, pricing and chips are in focus

Beyond the earnings print, investors will be watching for any update to GM’s 2026 guidance. Guidance is management’s own forecast for future performance, and changes to it can move a stock because they reset expectations for the rest of the year.

Tariffs are one major item on the watch list. In April, GM raised its 2026 adjusted earnings guidance after reflecting a $500 million tariff rebate. The company lifted its expected adjusted earnings range to $13.5 billion to $15.5 billion, or $11.50 to $13.50 per share, which was $500 million, or 50 cents per share, above its earlier forecast.

Investors will also listen for comments on vehicle pricing and commodity costs. Auto pricing matters because even small changes in average selling prices can affect profit across a large production base. Commodity costs matter because automakers rely on large amounts of materials and components, including dynamic random access memory, or DRAM, chips used in vehicle electronics.

Barclays sees room for a beat

Barclays analyst Dan Levy said in a July 8 investor note that he expects both GM and Ford Motor, which is due to report next week, to top second-quarter earnings expectations and deliver “at least a soft raise.”

Levy said automakers have benefited from a stronger macro backdrop, with the U.S. seasonally adjusted annual rate, a measure of annualized auto sales adjusted for seasonal swings, outperforming in the first half of the year. He also said pricing has held steady and that both GM and Ford built caution into their outlooks.

GM executives are scheduled to discuss the results with analysts and investors on a conference call at 8:30 a.m. ET. That call may be as important as the numbers themselves, especially if management gives more detail on tariff effects, demand trends and cost pressure.

This story draws on original reporting from CNBC.