Tuesday Edition · Tue 20 Oct 2026
GM Beats Estimates With $4.1 Billion Adjusted EBIT and a New $20 Billion Buyback, but Shares Slide as It Narrows Guidance
General Motors reported stronger third-quarter profit than analysts expected and authorised a new $20 billion share repurchase, yet its shares fell sharply in early New York trading after it narrowed its full-year forecast. Trucks and SUVs carried the quarter while tariffs and other costs weighed.
Chanan Zevin - Chief Editor and Head of Desks
Published
The results
GM reported third-quarter revenue of $50.0 billion and adjusted earnings before interest and taxes of $4.1 billion, up 22% from a year earlier, according to the company's release. Adjusted earnings per share were $3.70, against $3.63 expected by analysts surveyed by LSEG, CNBC reported. Revenue beat the consensus estimate of about $48.7 billion. Net income attributable to stockholders was $3.3 billion.
The guidance
GM narrowed its 2026 adjusted EBIT guidance to $14.5 billion to $15.5 billion, from $14 billion to $16 billion. It raised its adjusted automotive free cash flow forecast to $11.5 billion to $12.5 billion, from $9.5 billion to $11.5 billion. Reuters reported that the full-year profit forecast missed Wall Street estimates. The midpoint of the range was unchanged, but investors had hoped for an increase after a strong quarter.
The buyback
The board approved a new multi-year $20 billion share repurchase authorisation with no expiration date, GM said. The company completed the $6 billion buyback announced in January. It had 849 million shares outstanding at the end of September, down from 904 million at the end of 2025 and 1.2 billion at the end of 2023. GM also declared a quarterly dividend of $0.18 per share.
The market reaction
GM shares fell about 6.5% to around $77 in early New York trading on Tuesday, according to Yahoo Finance data, after closing at $82.75 on Monday. That is an early-session move, not a closing result. Shares had already fallen about 6% before the opening bell, CNBC and Reuters reported.
What drove the quarter
Pickups and large SUVs remained the core of GM's profit, Reuters reported. Those vehicles carry higher margins than cars and electric models. Strong pricing in the segment offset some of the pressure from costs. The company is relying on the same mix that has supported it for several years.
The pressures
GM cited tariffs, logistics and energy costs as headwinds. Oil above $110 a barrel raises shipping and materials costs. Electric-vehicle sales were lower, according to Reuters.
A regional shadow
Another industry signal came from the Gulf. Saudi Arabia postponed the Future Investment Initiative conference, scheduled for 26 to 29 October, to 2027 after Houthi attacks including a deadly strike on Riyadh's King Khalid International Airport, Reuters, CNN and The New York Times reported. The event usually draws chief executives from across manufacturing and finance.
Returning cash to shareholders
The buyback reflects a strategy GM has followed for several years. Rather than spend heavily on expansion, the company has used profits from trucks and SUVs to reduce its share count. Fewer shares raise earnings per share even when total profit is flat. Critics argue the money could be invested in electric vehicles and software. Supporters say returning cash is sensible when the outlook for EV demand is uncertain and tariffs make costs hard to predict.
Reading the guidance
Narrowing a range is common late in the year, because fewer months remain for surprises. The issue for investors is where the range sits. GM kept its midpoint steady while raising its cash-flow forecast, which suggests stronger cash generation but no upgrade to profit. Analysts had expected the strong quarter to lift the full-year number. The share reaction shows that markets reward raised forecasts more than beats.
What to watch
The closing share price, analysts' revisions and comments on tariffs in GM's investor call will shape the reaction. Ford and other carmakers report soon, which will show whether GM's cost pressures are shared across the industry.
Sources
- General Motors, Third-quarter 2026 results release, 20 Oct 2026 · investor.gm.com
- CNBC, General Motors Q3 2026 earnings, 20 Oct 2026 · cnbc.com
- Reuters via Investing.com, GM shares sink as full-year profit forecast misses estimates, 20 Oct 2026 · investing.com
- Yahoo Finance, GM historical prices, 20 Oct 2026 · finance.yahoo.com
- Reuters, CNN and The New York Times on the postponement of the Future Investment Initiative, Oct 2026