General Motors beat Wall Street's third-quarter estimates, narrowed its 2026 guidance and announced a new $20 billion multiyear buyback. Its shares still fell roughly 6% in early trading Tuesday because the outlook missed expectations.
General Motors beat third-quarter expectations on both revenue and earnings, yet its stock slipped because the outlook missed expectations. GM stock was off roughly 6% during early trading Tuesday after the outlook missed Wall Street's expectations.
Quarterly results top estimates
Adjusted earnings per share came in at $3.70 versus $3.63 expected, according to LSEG estimates. Revenue reached $50.02 billion against $48.7 billion expected.
Net income attributed to stockholders was $3.3 billion, up roughly $2 billion from a year earlier. North American operations accounted for $3.6 billion of the $4.1 billion in adjusted EBIT.
Narrower guidance and a $20 billion buyback
GM now expects adjusted EBIT of between $14.5 billion and $15.5 billion, or $12.75 to $13.75 adjusted earnings per share. Its July guidance had called for $14 billion to $16 billion. The new EPS midpoint of $13.25 fell short of the $13.41 analysts expected, according to LSEG.
The automaker raised its expectations for adjusted automotive free cash flow to $11.5 billion to $12.5 billion, up from $9.5 billion to $11.5 billion. GM also announced a new multiyear stock buyback of $20 billion after it completed a $6 billion repurchase program, and it gave no specific timeframe for the new one.
Costs pressure next year's outlook
GM expects commodity inflation costs of around $2 billion, the high end of its previous guidance, including higher logistics and DRAM chip costs. Gross tariff costs should land at the low end of the $2.5 billion to $3.5 billion range, the company said.
Several analysts said in investor notes that the results were solid but questioned whether higher costs and vehicle pricing pressure would limit earnings growth next year. CFO Paul Jacobson said vehicle pricing is relatively flat, and that GM would assess consumers before deciding whether to raise prices more than normal.
Source: CNBC
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