GM faces Wall Street test with tariffs and chip costs in focus
Analysts expect General Motors to report higher adjusted profit and slightly lower revenue for the second quarter.
By Frankie Delgado · News Reporter
2 min read
General Motors heads into Tuesday’s earnings report with Wall Street looking for fatter adjusted profit, even as revenue is expected to tick lower from a year earlier.
The Detroit automaker is scheduled to release second-quarter results before the market opens. GM executives are also due to discuss the numbers on an earnings call at 8:30 a.m. ET.
Average estimates compiled by LSEG point to adjusted earnings of $3.20 per share and revenue of $47.01 billion. If GM hits those marks, adjusted earnings per share would be up more than 26% from the same period last year, while revenue would be down 0.2%.
What Wall Street is watching
Beyond the headline profit and sales figures, investors are waiting to hear whether GM changes its 2026 outlook. The company’s comments on tariffs, vehicle prices and commodity costs are also expected to draw attention.
One specific cost item on the watch list is dynamic random access memory, or DRAM, chips. Those components are among the commodity pressures investors are tracking as automakers manage costs across production.
GM’s second quarter a year ago brought in $47.12 billion in revenue, according to CNBC. The company also reported net income attributable to stockholders of $1.9 billion and adjusted earnings before interest and taxes of $3.04 billion for that period.
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 to top earnings expectations for the second quarter. Ford is scheduled to report next week.
Levy also said he expects the automakers to deliver “at least a soft raise,” according to CNBC. In the note, he pointed to a stronger U.S. auto market in the first half of the year, steady pricing and what he described as conservative company guidance from both Ford and GM.
GM already lifted its 2026 adjusted earnings guidance in April. The company raised the forecast to account for a $500 million tariff rebate, bringing its expected adjusted earnings range to $13.5 billion to $15.5 billion.
On a per-share basis, GM’s updated outlook stands at $11.50 to $13.50. That was an increase of $500 million, or 50 cents per share, from its earlier forecast.
The earnings report will give investors a fresh read on whether GM can keep that guidance intact while managing tariffs, pricing pressure and supply costs. For now, Wall Street’s bar is clear: $3.20 in adjusted earnings per share and $47.01 billion in revenue.
This story draws on original reporting from CNBC.