General Motors reported third-quarter results that exceeded Wall Street expectations, prompting the company to adjust its 2026 financial guidance. The Detroit automaker narrowed its adjusted earnings per share midpoint to between $12.75 and $13.75, compared with analyst expectations centered around $13.41 per share according to LSEG data.
Despite the earnings beat, GM’s stock declined nearly 7% during trading as investors reacted to guidance that fell short of prior expectations. The company had previously raised guidance in July, which included an adjusted earnings per share range of $12 to $14. GM’s revised guidance reflects adjusted earnings before interest and taxes between $14.5 billion and $15.5 billion, alongside adjusted automotive free cash flow expectations of $11.5 billion to $12.5 billion, up from the prior range of $9.5 billion to $11.5 billion.
The automaker announced a new $20 billion multiyear stock buyback program following completion of a $6 billion repurchase program announced in January. GM did not specify a timeline for completing the new buyback initiative.
Cost pressures continued to weigh on the company’s outlook. GM disclosed that commodity inflation costs would reach approximately $2 billion, representing the high end of previous expectations. These costs include expenses related to logistics and dynamic random-access memory chips affecting multiple industries. Conversely, gross tariff costs were expected to fall at the low end of the $2.5 billion to $3.5 billion range. Warranty costs were projected at the high end of the $1 billion to $1.5 billion band. The company reported that vehicle pricing remained relatively flat as inflationary pressures increased.
GM’s North American operations generated $3.6 billion of the company’s $4.1 billion in adjusted earnings before interest and taxes during the quarter. Net income attributed to stockholders reached $3.3 billion, representing an increase of roughly $2 billion compared with the prior year period. The company also noted that costs associated with its previously announced pullback in all-electric vehicle production were substantially completed, with $11.2 billion in charges recorded since the second half of the prior year, including $4.6 billion in cash payments through the third quarter of the $7.4 billion total expected outlay.
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