TL;DRGM beat Q2 estimates by 37 cents a share, raised guidance, and announced gas-powered Cadillacs for 2027 as its EV pullback nears completion.
General Motors beat Wall Street’s second-quarter estimates by 37 cents a share on Tuesday, raised its full-year earnings guidance for the second time this year, and used the same earnings call to announce that Cadillac will launch new gas-powered versions of the CT5 sedan, XT5 crossover, and discontinued XT6 three-row SUV starting next spring. Revenue came in at $48 billion, above the $47 billion analysts had expected, while adjusted earnings rose roughly 30 percent year over year to nearly $4 billion. CFO Paul Jacobson told CNBC the company’s stock is a “bargain” at roughly $75 a share, up more than 40 percent from a year ago.
The Cadillac announcement is the clearest signal yet that GM’s all-electric strategy is over. The company had planned for Cadillac to sell only electric vehicles by the end of this decade, but CEO Mary Barra said Tuesday that next-generation gas-powered Cadillacs will begin arriving in showrooms next spring and continue through 2028. The new models will sit alongside Cadillac’s existing electric crossovers and the Escalade SUV, effectively rebuilding the brand as a dual-powertrain lineup rather than the all-electric flagship GM once promised.
