General Motors Stock Slips as Profit Decline, Weak EV Sales Undercut Earnings Beat

General Motors (NYSE: GM) stock declined in pre-market trading Tuesday after the automaker's second-quarter earnings report revealed underlying weaknesses that overshadowed better-than-expected headline results and an increased full-year forecast.

Earnings Beat Masks Deeper Issues

According to its Q2 2026 report, General Motors posted an adjusted earnings per share (EPS) of $3.57 on revenue of $48.0 billion. Both figures surpassed analyst consensus estimates of approximately $3.18 for EPS and $46.99 billion for revenue. The company also raised its full-year 2026 adjusted EBIT guidance to a new range of $14.0 billion to $16.0 billion.

However, the positive adjusted figures were tempered by a significant drop in profitability on a standard accounting basis. GM's GAAP net income fell 31% year-over-year to $1.3 billion, down from roughly $1.9 billion in the same quarter a year earlier. This sharp decline in net profit concerned investors and muted the reaction to the headline beats.

Sales Volumes Falter

The negative sentiment was compounded by weak sales figures. The company reported several operational headwinds during the quarter, including:

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• Total U.S. vehicle deliveries fell 4.2% year-over-year to approximately 715,000 units.
• Electric vehicle (EV) sales volumes dropped significantly, with some key models experiencing declines of more than 60%.

Market Context

GM's stock slip of 1.3% in pre-open trading stood in contrast to a rising broader market, indicating the decline was a direct response to its earnings release rather than macroeconomic pressure. The report sets a cautious tone for the auto sector, with peer Ford scheduled to announce its own results next week.

Investors had high expectations for the company, as its stock had gained 55% over the past twelve months. The combination of deteriorating GAAP profitability and slowing sales momentum, particularly in the critical EV segment, proved sufficient to disappoint the market despite the raised guidance.