General Motors beat Wall Street's third quarter estimates and approved a new $20B share repurchase authorization, the automaker said Oct. 20.
Revenue reached $50.0B in the quarter, with net income attributable to stockholders of $3.3B and EBIT-adjusted of $4.1B. Adjusted earnings per share came in at $3.70.
Net income rose roughly $2B from a year earlier, helped by solid truck demand, lower electric vehicle losses, and warranty improvements.
GM lifted its 2026 adjusted automotive free cash flow outlook to $11.5B-$12.5B. The company narrowed EBIT-adjusted guidance to $14.5B-$15.5B and adjusted EPS to $12.75-$13.75. The board also declared a quarterly dividend alongside the buyback authorization.
| Metric | Updated (Oct 20) | Previous (July) |
|---|---|---|
| EBIT-adjusted ($B) | $14.5B-$15.5B | $14.0B-$16.0B |
| Adjusted automotive free cash flow ($B) | $11.5B-$12.5B | $9.5B-$11.5B |
| Adjusted EPS ($/share) | $12.75-$13.75 | $12.00-$14.00 |
EV charges are mostly behind it
GM described the costs tied to its electric vehicle pullback as substantially completed, with $11.2B in charges recorded since the second half of 2025.
Of the $7.4B in cash tied to those charges, $4.6B had been paid through the third quarter.
North America margins hit 8.7% in the quarter, up 2.5 points from a year earlier.
GM's CEO Mary Barra said year-to-date adjusted diluted EPS of $10.97 was up more than 35% year over year, alongside $12.3B of EBIT-adjusted and $12.2B of adjusted automotive free cash flow.
Industry sales ran in the upper 16M-unit range during the quarter, with demand holding across trucks, SUVs, and fleet.
Costs cloud the 2027 picture
Commodity costs created a headwind of roughly $700M in the quarter and about $1.3B year to date.
Several analysts praised the results but warned that rising costs and weaker vehicle pricing could cap profit growth next year.
JPMorgan's Rajat Gupta said before the report that investor attention would land on how GM revises its 2027 outlook.
Management pointed to OnStar, Super Cruise, and Defense as growth adjacencies beyond the core vehicle business.
GM expects full year automotive operating cash flow of $17.3B-$20.3B and net income attributable to stockholders of $8.9B-$9.5B.
GM heads into 2027 with more cash to return to shareholders, while commodity costs and softer pricing will decide how much of it holds.
