General Motors Company GM is slated to release second-quarter 2026 results on July 21, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $3.13 and $45.96 billion, respectively.
For the second quarter, the consensus estimate for General Motors’ earnings has moved up 2 cents over the past seven days. Its bottom-line estimates imply growth of 2.37% from the year-ago reported numbers.
The Zacks Consensus Estimate for GM's quarterly revenues implies a year-over-year decline of 2.5%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 20.25%. This is depicted in the graph below:
General Motors Company Price and EPS Surprise
General Motors Company price-eps-surprise | General Motors Company Quote
Q1 Highlights
In the first quarter of 2026, General Motors reported adjusted earnings of $3.70 per share, which rose 33% from $2.78 a year ago. The figure topped the Zacks Consensus Estimate of $2.61 by 41.8%. Revenues of $43.62 billion slipped 0.9% year over year and missed the consensus mark of $43.94 billion by 0.7%.
Things to Note
General Motors’ China restructuring continues to show traction, with first-quarter 2026 China equity income reported at $165 million (its sixth quarterly gain), reflecting restructuring benefits and disciplined production and inventory management. It expects China to remain profitable in 2026.
The automaker is building a larger recurring revenue base from OnStar and Super Cruise. In first-quarter 2026, recognized digital revenues exceeded $750 million, up more than 20% year over year, and deferred revenues reached $5.8 billion, up more than 50%. Management expects recognized digital revenues of about $3.1 billion in 2026 and deferred revenues approaching $7.5 billion by year-end as subscribers rise to roughly 13 million.
Restructuring benefits in China and strong revenues from the software and services business are likely to have enhanced the performance of GM in the second quarter.
In the second quarter of 2026, General Motors’ brands Cadillac, Buick, Chevrolet and GMC recorded a year-over-year decline of 19.2%, 7.5%, 3.9% and 0.3%, respectively.
Let’s have a look at our estimates for GM’s segmental performance.
We expect GM North America (GMNA) revenues to be $37.8 billion, suggesting a year-over-year decline of 4.3%. For GM International (GMI), we expect sales of $3.75 billion, indicating a 12.8% year-over-year increase. We project GM Financial sales to be $4.35 billion, suggesting a rise of 2.3% year over year.
Our estimate for the GMNA segment’s operating income is $3.03 billion, which suggests a rise of 35.7% year over year. We expect GMI's operating income to be $140.3 million, suggesting a decline of 31.2% year over year. Our estimate for the GM Financial operating income is $731.7 million, suggesting a rise of 3.9% year over year.
Earnings Whispers
Our proven model predicts an earnings beat for General Motors for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.
Earnings ESP: GM has an Earnings ESP of +5.17%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are a few other players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.
Gentex Corporation GNTX is slated to release second-quarter 2026 results on July 24. The company has an Earnings ESP of +0.67% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GNTX’s to-be-reported quarter’s earnings and revenues is pegged at 50 cents per share and $669 million.
Cummins Inc. CMI is slated to release second-quarter 2026 results on August 4. The company has an Earnings ESP of +0.43% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $7.34 per share and $9.33 billion.
BorgWarner Inc. BWA is slated to release second-quarter 2026 results on August 5. The company has an Earnings ESP of +0.62% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for BWA’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $3.58 billion.
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General Motors Company (GM): Free Stock Analysis Report
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Gentex Corporation (GNTX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).