General Motors topped Wall Street’s third-quarter forecasts and approved a fresh US$20 billion share buyback, the Detroit carmaker announced on Tuesday, yet its shares slid as investors focused on a tighter full-year profit range and mounting cost pressures.
Revenue for the three months to September rose 2.9% from a year earlier to US$50.02 billion, which Investing.com described as a quarterly record. Analysts had expected about US$48.7 billion, according to Benzinga. Adjusted earnings per share climbed 32% to US$3.70 from US$2.80, edging past the consensus estimate of US$3.63.
Net income attributable to stockholders more than doubled to US$3.34 billion from US$1.33 billion, while adjusted earnings before interest and taxes (EBIT) increased 21.6% to US$4.11 billion. The adjusted EBIT margin widened to 8.2% from 6.9%.
North America carries the quarter
GM’s home market did the heavy lifting. Adjusted EBIT in North America jumped to US$3.59 billion from US$2.51 billion, lifting the region’s margin to 8.7% from 6.2%. Investing.com said the gains were driven by higher wholesale volumes, a richer model mix, lower warranty costs and favourable electric-vehicle inventory adjustments, partly offset by commodity, logistics and manufacturing expenses.
Other units were weaker. GM International’s adjusted EBIT fell to US$28 million from US$226 million, and adjusted pre-tax earnings at lending arm GM Financial dropped 16.9% to US$668 million. Benzinga noted that global deliveries fell 11% to about 1.4 million vehicles, largely reflecting softer EV sales and discontinued models, though GM’s China joint venture booked its eighth consecutive profitable quarter.
Adjusted automotive free cash flow surged 40% to US$5.88 billion, helped by stronger earnings and the timing of tariff payments, Benzinga reported.
Guidance narrowed, cash forecast raised
For 2026, GM now expects adjusted EBIT of US$14.5 billion to US$15.5 billion, compared with its earlier range of US$14 billion to US$16 billion, and adjusted EPS of US$12.75 to US$13.75, versus US$12 to US$14 previously. The midpoint of the new EPS range sits slightly below the US$13.41 analysts had pencilled in, according to Benzinga. The company did, however, lift its adjusted automotive free cash flow forecast to US$11.5 billion to US$12.5 billion, from US$9.5 billion to US$11.5 billion.
The board approved a new multi-year US$20 billion repurchase programme with no expiry date after GM completed the US$6 billion plan announced in January. Shares outstanding have fallen to 849 million from 904 million at the end of 2025. GM also declared a quarterly dividend of 18 US cents per share, payable on December 17.
Investors were unconvinced. GM shares fell more than 7% in premarket trading, Benzinga reported, citing the narrowed outlook and concerns over commodity inflation, logistics and memory-chip costs. Investing.com later put the decline at just over 5%. The company’s guidance assumes about US$2 billion in commodity inflation this year, including logistics and DRAM chips.
What’s next
GM is pinning its 2027 hopes on its next-generation Chevrolet Silverado and GMC Sierra pickups, added SUV capacity and growing software revenue from OnStar and Super Cruise, with management describing next year as “another strong year and better than 2026”, Investing.com reported. The carmaker also said it has largely completed the cash charges tied to resizing its EV battery supply chain, with about US$1 billion still to be paid in the fourth quarter.
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