General Motors (GM) has seen its stock rise 14.4% since reporting stronger-than-expected second-quarter earnings on July 21, while Ford Motor Company (F) has experienced a 3% decline since its own earnings report on July 28. Both automakers improved their full-year outlooks amidst challenges like tariffs and high interest rates.
GM reported an adjusted EBIT margin of 8.6% for Q2 and is on track to exceed its adjusted EPS guidance of $12-$14 for 2026. Its equity income in China doubled to $248 million in the first half of the year. Meanwhile, Ford’s truck sales remain strong, with the F-150 Hybrid leading in its category, and the company anticipates a 2026 free cash flow of $6-$7 billion.
Analysts project a 70% EPS growth for Ford in 2026 and 25% for GM. Currently, GM shares trade at 0.4 times forward earnings, while Ford’s is lower at 0.32, suggesting Ford may offer a more attractive valuation for investors.
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