General Motors raised its full-year guidance after posting second-quarter results that came in ahead of expectations. The automaker reported its latest earnings before markets opened on Tuesday, signaling continued momentum even as vehicle sales were lower than a year earlier.

A key takeaway from the quarter was GM’s ability to expand profits as costs eased. That improvement helped offset the pressure from softer sales volumes and suggested the company is managing expenses more effectively in a still-challenging auto market.

The earnings beat and higher outlook point to confidence in GM’s business for the rest of the year. Investors often watch guidance closely because it reflects management’s view on demand, pricing, and the company’s ability to maintain margins in coming quarters.

GM’s update adds to the broader conversation around how major automakers are balancing production, pricing, and cost control. In GM’s case, the latest quarter showed that lower costs played a major role in supporting earnings strength despite a decline in sales.