GM beats third-quarter forecasts, but shares fall on its outlook
General Motors beat Wall Street's third-quarter forecasts and approved a new $20 billion stock buyback, CNBC and Reuters reported. But GM's new 2026 profit range has a midpoint below analyst estimates. Its shares were down about 8% as of 12:30 PM ET Tuesday, according to CNBC market data.
General Motors beat Wall Street's third-quarter expectations, raised its free cash flow outlook and approved a new $20 billion share buyback, according to CNBC and the company's earnings release filed with the SEC on Tuesday.
GM reported adjusted earnings of $3.70 a share on revenue of $50.0 billion, the release showed. Analysts expected $3.63 a share on $48.7 billion in revenue, according to LSEG estimates cited by CNBC. Net income attributable to stockholders was $3.3 billion, up from $1.3 billion a year earlier, CNBC reported.
Investors focused on the outlook. GM stock was off roughly 5% during trading as its outlook missed Wall Street's expectations, CNBC reported. As of 12:30 PM ET, the shares were down 8.0% at $76.14, according to CNBC market data.
GM now expects 2026 adjusted earnings of $12.75 to $13.75 a share and adjusted earnings before interest and taxes of $14.5 billion to $15.5 billion, CNBC reported. The $13.25 midpoint is below the $13.41 analysts expected, CNBC and Reuters reported, citing LSEG. GM raised its adjusted automotive free cash flow forecast to $11.5 billion to $12.5 billion, from $9.5 billion to $11.5 billion in July, CNBC reported.
GM expects commodity inflation costs of around $2 billion, the high end of its earlier guidance, including higher costs for logistics and memory chips, CNBC reported. Gross tariff costs are expected at the low end of a $2.5 billion to $3.5 billion range, GM said. "Our fourth quarter's going to be down sequentially," Chief Financial Officer Paul Jacobson said in an interview with CNBC.
The new multiyear buyback follows GM's completion of a $6 billion program announced in January, and it has no expiration date, the release said. GM had 849 million shares outstanding at the end of September, down from 904 million at the end of 2025. The board also declared a quarterly dividend of 18 cents a share, payable December 17.
GM said the costs of its pullback in all-electric vehicles were "substantially completed," CNBC reported. The automaker has recorded $11.2 billion in such charges since the second half of last year, according to CNBC.
What we know: GM beat third-quarter forecasts and approved a $20 billion buyback, but the midpoint of its 2026 profit range trails analyst estimates.
What we don't: How much rising costs will weigh on earnings next year, and whether GM will raise vehicle prices to offset them.
Where outlets agree CNBC and Reuters report that GM earned $3.70 a share on an adjusted basis, topping the $3.63 analysts expected, and approved a new $20 billion share buyback.
Where they differ CNBC reports that analysts raised concerns about whether higher costs and pressures on vehicle pricing would limit earnings growth next year, while GM CEO Mary Barra said the company is working to continue its momentum despite growing inflationary pressures.