GM Financial Reports $432 Million in Second-Quarter 2026 Net Income as Retail Lending Grows
General Motors Financial Company, Inc. (GM Financial) reported net income of $432 million for the second quarter of 2026, marking a decline from the $510 million recorded during the same period a year earlier. Despite the year-over-year decrease in earnings, the company delivered stronger quarterly retail loan originations and maintained a substantial liquidity position, highlighting continued activity across its automotive financing operations.
For the six months ended June 30, 2026, GM Financial reported net income of $946 million, compared with approximately $1.0 billion during the first six months of 2025. The results reflect a period in which the company continued to support vehicle sales through retail financing, commercial lending and operating leases while also managing changes in portfolio performance and credit conditions.
The company’s second-quarter performance provides insight into consumer demand for vehicle financing and the broader operating environment facing automotive finance companies. Retail lending activity increased compared with the first quarter of 2026 and also exceeded the level recorded during the second quarter of 2025. At the same time, delinquency rates and annualized net charge-offs moved higher, indicating continued pressure on credit performance.
Retail Loan Originations Increase During the Second Quarter
GM Financial generated $10.0 billion in retail loan originations during the quarter ended June 30, 2026. The figure represented an increase from $8.3 billion in the first quarter of the year and was also higher than the $9.5 billion recorded during the second quarter of 2025.
The quarterly increase suggests stronger activity in vehicle financing during the second quarter, as consumers and dealers generated greater demand for retail automotive loans. Retail loan originations are an important indicator of GM Financial’s business activity because they contribute directly to the company’s portfolio of finance receivables and future interest income.
For the first six months of 2026, however, retail loan originations totaled $18.3 billion, down from $19.1 billion during the comparable period in 2025. The decline in the year-to-date figure indicates that stronger second-quarter activity was not sufficient to fully offset the lower volume recorded earlier in the year.
The outstanding balance of retail finance receivables stood at $76.1 billion at June 30, 2026. This was higher than the $74.9 billion reported at the end of the first quarter, reflecting the impact of new loan originations and portfolio activity during the period. However, the balance remained below the $77.8 billion reported at June 30, 2025.
The changes in the retail portfolio reflect a combination of loan originations, repayments, vehicle sales and other portfolio movements. For GM Financial, the size and performance of the retail finance portfolio remain central to overall earnings and credit performance.
Operating Lease Originations Decline From a Year Earlier
GM Financial also reported $4.1 billion in operating lease originations during the second quarter of 2026. The figure was slightly higher than the $4.0 billion recorded during the first quarter but significantly below the $5.4 billion reported during the second quarter of 2025.
For the first six months of 2026, operating lease originations totaled $8.2 billion, compared with $10.4 billion during the same period a year earlier. The year-over-year decline indicates lower leasing activity compared with the strong levels recorded in the first half of 2025.
Leased vehicles, net, totaled $32.9 billion at June 30, 2026. That figure was down from $33.3 billion at March 31, 2026 and slightly below the $33.2 billion reported at the end of June 2025.
Operating leases form an important part of GM Financial’s business model by allowing customers and commercial users to access vehicles through lease arrangements rather than traditional retail loans. The performance of this business is influenced by vehicle sales, lease demand, contract terms, used-vehicle values and the timing of vehicle returns.
The decline in operating lease originations during the first half of 2026 may reflect changes in customer financing preferences, vehicle availability and broader market conditions. The value of leased vehicles also remains important to the company’s financial performance because vehicles returned at the end of lease contracts may be sold in the used-vehicle market.
Commercial Finance Portfolio Expands
GM Financial’s commercial finance business also showed growth during the second quarter. The outstanding balance of commercial finance receivables reached $16.5 billion at June 30, 2026.
That represented an increase from $15.7 billion at March 31, 2026. However, the balance was slightly lower than the $16.7 billion recorded at June 30, 2025.
Commercial finance receivables generally support automotive dealers and other commercial customers through financing arrangements connected to vehicle inventory and other business needs. The performance of this portfolio is closely tied to dealership activity, inventory levels, vehicle sales and broader conditions in the automotive retail market.
The quarterly increase in commercial finance receivables indicates that the company continued to provide financing support to its commercial customers during the period. At the same time, the year-over-year comparison shows that the portfolio remained relatively stable compared with the previous year.
Delinquency Rates Move Higher
Credit performance remained an important focus of GM Financial’s second-quarter results. Retail finance receivables that were between 31 and 60 days delinquent represented 2.4% of the portfolio at June 30, 2026. This was higher than the 2.1% reported at the same point in 2025.
Accounts that were more than 60 days delinquent represented 1.0% of the retail finance portfolio at the end of the second quarter of 2026. That compared with 0.8% a year earlier.
The increase in delinquency rates indicates that a greater proportion of customers were experiencing delays in making scheduled payments compared with the prior-year period. Delinquency trends are closely monitored by auto finance companies because they can provide an early indication of potential future credit losses.
Higher delinquency levels can result from a variety of factors, including changes in household budgets, interest rates, employment conditions, vehicle affordability and overall consumer financial pressure. For finance companies, maintaining disciplined underwriting and closely managing portfolio performance are important in limiting the impact of rising delinquencies.
Net Charge-Offs Increase
Annualized net charge-offs also increased during the second quarter. GM Financial reported annualized net charge-offs of 1.3% of average retail finance receivables for the quarter ended June 30, 2026. That compared with 1.1% during the second quarter of 2025.
For the six months ended June 30, 2026, annualized retail charge-offs were 1.4%, compared with 1.2% during the first six months of 2025.
Net charge-offs represent loans that are considered uncollectible after recoveries and other adjustments. The increase in charge-off rates indicates that credit losses were higher than during the comparable periods of the previous year.
The rise in both delinquencies and charge-offs represents an important trend for GM Financial. While the company’s retail portfolio expanded sequentially during the quarter, higher credit losses can place pressure on earnings and require the company to maintain appropriate reserves for potential future losses.
Nevertheless, the reported charge-off levels remain part of the normal credit cycle for a large automotive finance portfolio. The company’s future performance will depend in part on whether credit trends stabilize or continue to deteriorate during the remainder of 2026.
Strong Liquidity Position Provides Financial Flexibility
GM Financial reported total available liquidity of $33.3 billion at June 30, 2026. The company’s liquidity resources included several sources of funding and borrowing capacity.
The company held $5.1 billion in cash, cash equivalents and marketable debt securities. In addition, GM Financial had $24.0 billion of borrowing capacity under secured credit facilities.
The company also had $1.2 billion of borrowing capacity under committed unsecured credit facilities. Further liquidity included $1.0 billion of borrowing capacity under the Junior Subordinated Revolving Credit Facility from General Motors and $2.0 billion of borrowing capacity under the GM Revolving 364-Day Credit Facility.
Together, these resources provide GM Financial with substantial financial flexibility. Liquidity is particularly important for an automotive finance company because the business requires ongoing access to funding to support new retail loans, commercial financing and lease originations.
The company’s available liquidity also provides a cushion against changes in capital markets and broader economic conditions. Access to multiple sources of funding can help the company continue financing customers and commercial partners while managing its existing portfolio.
Second-Quarter Results Reflect a Mixed Operating Environment
GM Financial’s second-quarter 2026 results present a mixed picture. Retail loan originations increased both sequentially and compared with the same quarter a year earlier, indicating continued demand for vehicle financing. The retail finance receivables portfolio also grew compared with the first quarter.
However, operating lease originations declined substantially from the previous year, and year-to-date retail and lease originations were lower than during the first half of 2025. The company also reported higher delinquency rates and increased annualized net charge-offs, reflecting greater pressure on credit performance.
Net income of $432 million was lower than the $510 million recorded in the second quarter of 2025, while six-month net income declined to $946 million from approximately $1.0 billion in the prior-year period.
The company’s strong liquidity position remains a key financial strength. With $33.3 billion in total available liquidity, GM Financial has significant resources to support its lending operations and manage changing market conditions.
Going forward, the performance of the company will likely depend on several factors, including vehicle sales, consumer demand for auto financing, interest rates, used-vehicle values, portfolio credit performance and access to funding markets. The evolution of delinquency and charge-off rates will also remain closely watched as the company moves through the remainder of 2026.
Overall, GM Financial’s second-quarter results show continued strength in retail lending activity alongside ongoing challenges in credit performance and operating lease volume. The company enters the second half of the year with a large financing portfolio, a substantial commercial finance business and significant liquidity resources to support its operations.
GM Financial is the financial services arm of General Motors and provides automotive financing and leasing solutions to customers and commercial partners. Its operations include retail vehicle financing, operating leases and commercial finance products. The company supports automotive sales by providing financing options for consumers and businesses while managing a large portfolio of automotive finance receivables and leased vehicles.
About GM Financial
General Motors Financial Company, Inc. is the wholly owned captive finance subsidiary of General Motors Company and is headquartered in Fort Worth, Texas. Additional materials addressing the Company’s results of operations for the quarter ended June 30, 2026
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