General Motors reported a strong third-quarter financial performance that surpassed Wall Street expectations, allowing the Detroit automaker to narrow its full-year 2026 earnings guidance, raise its free cash flow expectations, and authorize a new $20 billion multiyear stock buyback program.
The massive share repurchase authorization follows the completion of a $6 billion stock buyback program that was initially announced in January. Company executives did not specify a precise timeline for the completion of the new $20 billion program.
For the third quarter, GM posted adjusted earnings per share of $3.70, beating the $3.63 average estimate compiled by LSEG. Revenue reached $50.02 billion, exceeding the anticipated $48.7 billion. Net income attributed to stockholders climbed to $3.3 billion during the quarter, representing an increase of roughly $2 billion compared with the same period a year earlier, when the company posted $1.3 billion in net income on $48.59 billion in revenue.
Despite the earnings and revenue beats, GM stock fell roughly 5% during premarket trading following the announcement.
Bolstered by its third-quarter results, GM updated its full-year financial outlook. The company now projects adjusted earnings before interest and taxes of between $14.5 billion and $15.5 billion, translating to adjusted earnings per share of $12.75 to $13.75. Additionally, the automaker raised its adjusted automotive free cash flow projections to between $11.5 billion and $12.5 billion.
This updated forecast narrows the previous guidance issued in July, which projected adjusted EBIT of $14 billion to $16 billion, adjusted EPS of $12 to $14, and adjusted automotive free cash flow ranging from $9.5 billion to $11.5 billion.
Chief Financial Officer Paul Jacobson noted that the company anticipates a sequential decline in the fourth quarter while emphasizing the effectiveness of internal execution. “Our fourth quarter’s going to be down sequentially,” Jacobson said. “I think the fact that we’re able to hold our guidance in the face of that late inflationary pressure in the year is another sign of the GM team executing really well.”
Ahead of the report, Wall Street analysts remained divided on whether the automaker would elevate its guidance amid broader market concerns regarding slowing vehicle sales and rising commodity expenses. GM confirmed Tuesday that commodity inflation costs are tracking toward the high end of its previous estimates at approximately $2 billion, driven by increased expenses for logistics and dynamic random-access memory, or DRAM, chips affecting multiple manufacturing sectors.
At the same time, GM reported that gross tariff costs are tracking at the low end of its anticipated range of $2.5 billion to $3.5 billion. Meanwhile, warranty expenses are projected to land at the high end of expectations, between $1 billion and $1.5 billion.
Chief Executive Officer Mary Barra highlighted the company’s operational resilience in a letter to shareholders, pointing to strategic investments and improved efficiency. “GM is performing well, and we are working hard to continue our momentum despite growing inflationary pressures through strategic investments in new products and services, and through improved quality and operating efficiency,” Barra stated.
The automaker also provided an update on its strategic pullback from all-electric vehicles, which was announced last year. GM stated that the financial costs associated with the pivot are “substantially completed,” noting that it has recorded $11.2 billion in related charges since the second half of last year. This total includes $4.6 billion paid out in cash through the end of the third quarter out of $7.4 billion in total anticipated cash impacts.
Geographically, GM’s North American operations continued to serve as the primary engine for profitability, generating $3.6 billion of the company’s $4.1 billion in adjusted EBIT during the third quarter.
