Shares of General Motors (GM.US) continued their strong performance, rising more than 5% on Wednesday to trade at $83.64, following a nearly 5% gain in the previous session.

The upward move follows the company's decision to raise its full-year profit forecast for 2026, increasing its target by $5 billion to a range of $14 billion to $16 billion.

This adjustment is primarily attributed to robust consumer demand in the U.S. market for high-margin vehicles such as pickup trucks and large SUVs, which drove a significant 30% year-over-year increase in the company's second-quarter core profit.

Data revealed that GM's adjusted second-quarter earnings per share reached $3.57, while its earnings before interest and taxes (EBIT) climbed to $3.9 billion, both figures substantially exceeding prior market expectations.

A key driver of the company's improved performance is the resilience of its internal combustion engine vehicle sales coupled with a reduction in losses from its electric vehicle business.

General Motors indicated that, with the bulk of cash expenditures related to EV research, development, and production adjustments now complete, losses in its electric vehicle segment are expected to decrease by $1 billion to $1.5 billion this year.