GM Q3 2026 earnings came in ahead of expectations, prompting General Motors to tighten its full-year outlook and lift its forecast for automotive free cash flow, according to the company. The automaker also unveiled a new multiyear $20 billion stock repurchase plan after wrapping up a previously announced $6 billion buyback. GM did not specify a timetable for completing the new program.
Shares fell about 6% in early Tuesday trading as the revised outlook trailed consensus estimates, despite the quarterly beat. Analysts had been split heading into the report on whether management would raise guidance, citing softer demand trends and higher commodity expenses. Projections compiled by LSEG showed a full-year midpoint expectation of $13.41 per share versus GM’s new midpoint of $13.25.
GM Q3 2026 earnings and outlook
For the third quarter, GM reported adjusted earnings per share of $3.70 compared with $3.63 expected, and revenue of $50.02 billion versus $48.7 billion expected, based on LSEG averages.
The company now anticipates adjusted earnings before interest and taxes of $14.5 billion to $15.5 billion, equivalent to $12.75 to $13.75 in adjusted EPS, and adjusted automotive free cash flow of $11.5 billion to $12.5 billion. In July, GM had projected adjusted EBIT of $14 billion to $16 billion, adjusted EPS of $12 to $14, and adjusted automotive free cash flow of $9.5 billion to $11.5 billion.
GM’s chief financial officer, Paul Jacobson, said the fourth quarter is expected to be sequentially lower and noted that holding guidance in the face of late-year inflation underscores execution by the company.
Inflation, tariffs, and pricing dynamics
GM said commodity inflation is tracking around $2 billion for the year, at the top of prior guidance, with elevated logistics and DRAM chip costs affecting results. The company expects gross tariff costs to come in at the low end of a $2.5 billion to $3.5 billion range. Warranty expenses are forecast at the high end, between $1 billion and $1.5 billion.
Jacobson described vehicle pricing as largely flat while cost pressures rise. He said management will gauge consumer conditions in the year ahead when determining whether to pass on additional costs through pricing.
Chief Executive Mary Barra told shareholders that GM is working to sustain momentum amid inflation through investment in new products and services and by improving quality and operating efficiency.
EV pullback charges and segment performance
The company said costs tied to last year’s pullback in all-electric vehicles are “substantially completed.” GM has recorded $11.2 billion in related charges since the second half of last year, including $4.6 billion of $7.4 billion in cash payments through the third quarter.
Net income attributable to stockholders totaled $3.3 billion in the quarter, up about $2 billion from a year earlier. North America remained the profit engine, contributing $3.6 billion of the company’s $4.1 billion in adjusted EBIT for the period.
For comparison, GM’s third quarter a year earlier included $48.59 billion in revenue, net income attributable to stockholders of $1.3 billion, and adjusted earnings per share of $2.80.