General Motors earnings preview

What happened: General Motors (GM) reported Q2 earnings on July 25, beating revenue estimates with $48.03 billion, up 1.9% YoY. Despite lower profits, GM boosted full-year guidance, attributing this to cost reductions. Wall Street expected EPS of $3.20 and revenue of $47.01 billion. GM also cut FY26 net profit outlook but raised adjusted earnings view.

Market impact: GM's earnings beat drove a 26% increase in its stock price since early May, with analysts favoring GM over 3M for earnings, citing 20 Buy ratings and 26% implied upside. The automaker's valuation rise, fueled by buybacks, has broken free from historically low P/E ratios, attracting bullish sentiment.

What to watch next: GM's Q3 earnings report, expected in late October, will provide further insight into its cost-cutting initiatives and profit growth. Additionally, investors should monitor GM's progress in its electric vehicle (EV) transition, with the upcoming launch of the Chevrolet Equinox EV in late 2023.