General Motors beat Wall Street's expectations for the third quarter and announced a new $20 billion share buyback on Tuesday, 20 October 2026, but its shares still fell about 7% in pre-market trading, putting the stock on course for its worst day since July 2025, according to Benzinga.
The results
| Measure (Q3 2026) | Result | Comparison |
|---|---|---|
| Revenue | $50.02 billion, up 2.9% | Consensus $48.53 billion |
| Adjusted earnings per share | $3.70, up 32% | Estimate $3.56 |
| Net income | $3.34 billion | $1.33 billion a year earlier |
| EBIT-adjusted | $4.11 billion (8.2% margin) | — |
| North America EBIT-adjusted | $3.59 billion (8.7% margin) | 6.2% margin a year earlier |
| GM International EBIT-adjusted | $28 million, down 87.7% | About $130 million expected |
| Free cash flow | $5.88 billion, up 40% | — |
Figures are from GM's results release and Benzinga.
Why the shares fell
- Flat profit outlook: GM narrowed its 2026 EBIT-adjusted guidance to $14.5–15.5 billion from $14–16 billion, leaving the midpoint unchanged.
- Higher costs: GM now expects about $2 billion of commodity inflation, including memory chips and logistics, according to Benzinga.
- Market share: US deliveries were about 671,000 in the quarter, and GM's US share slipped to 16.1% from 16.8%.
- International weakness: profit outside North America almost disappeared, and income from its Chinese joint ventures fell 60% to $32 million.
The good news
There was plenty for shareholders to like. GM raised its 2026 free cash flow guidance to $11.5–12.5 billion from $9.5–11.5 billion. Its board approved a new $20 billion share buyback with no expiry date, after completing a $6 billion programme announced in January. Benzinga noted the new programme is equal to about 30% of GM's market value of roughly $65 billion. GM has already cut its share count to 849 million from 904 million at the end of 2025, and it had its best-ever third quarter for full-size pickup sales. The quarterly dividend stays at $0.18 a share, payable on 17 December.
Electric vehicle reset continues
The quarter included a $238 million charge for what GM calls the strategic realignment of its EV business, bringing such charges to $3.59 billion so far this year. Like other US carmakers, GM has scaled back EV plans as demand grew more slowly than expected, while leaning on profitable petrol-powered trucks and SUVs.
What happens next
Investors will watch whether rising costs squeeze margins in the fourth quarter and whether GM can win back US market share. Rival Tesla reports on 21 October, giving another read on the car industry.
This article is for information only and is not investment advice.
