"GM is likely to surprise the market," said Barclays analyst Dan Levy ahead of Tuesday's earnings release. General Motors is set to announce its Q2 2026 financial results before the market opens, with analysts projecting adjusted EPS of $3.20 and revenues near $47 billion. This expected earnings per share figure marks over a 26% increase compared to the same quarter last year, despite a slight revenue dip from $47.12 billion to an estimated $47.01 billion.
Investors will focus on GM's commentary regarding tariff impacts, vehicle pricing trends, and commodity expenses, particularly DRAM chips. The automaker raised its 2026 adjusted earnings guidance in April, increasing the forecast by $500 million to a range between $13.5 billion and $15.5 billion, equivalent to $11.50 to $13.50 per share. This adjustment partially accounts for a $500 million tariff rebate that has supported profitability amid U.S. macroeconomic strength and stable pricing.
Options market activity indicates traders expect significant volatility after the report. The straddle prices at the $76 strike suggest a potential move of approximately 6.7%, with a trading range projected between $70.74 and $80.86. Balanced call and put volumes reflect positioning for price swings rather than a firm directional bet, though concentrated put interest at $74 and call interest near $80 imply hedging strategies.
Currently, GM shares trade around $75.80, while analyst sentiment remains cautiously optimistic. The consensus rating is Moderate Buy, based on 13 Buy, three Hold, and one Sell recommendations over the past quarter. The average price target is $98.67, signaling upside potential. GM executives will discuss the results during an 8:30 a.m. ET conference call following the earnings announcement.
