GM shares fall despite a profit beat and $20 000 million buyback
The automaker topped third-quarter expectations, but its 2026 earnings-per-share forecast came in below what analysts had anticipated.
General Motors' stock fell on Oct. 20 even though the company reported third-quarter profits above forecasts, because it narrowed its outlook for all of 2026. Revenue grew 2.9% from a year earlier to $50 000 million, GM said in its filing with the SEC, the U.S. securities regulator.
Adjusted EBIT, the company's operating profit before interest and taxes with its own adjustments, was $4100 million, up 21.6%. Adjusted earnings per share came to $3.70, against $2.80 in the third quarter of 2025 and an estimate of $3.63 from LSEG, according to Reuters.
The board also approved a new $20 000 million share repurchase with no expiration date, after completing the $6000 million program announced in January. The quarterly dividend will be $0.18 a share, payable Dec. 17 to shareholders of record on Dec. 4.
What changed in the guidance
The guidance is what weighed on the market. The midpoint of projected earnings per share landed at $13.25, below the consensus of $13.41. The midpoint for operating profit held at $15 000 million.
| Item | Before | Now |
|---|---|---|
| Adjusted EBIT (billions of dollars) | 14.0 to 16.0 | 14.5 to 15.5 |
| Adjusted earnings per share (dollars) | 12.00 to 14.00 | 12.75 to 13.75 |
| Net income (billions of dollars) | 8.4 to 9.8 | 8.9 to 9.5 |
| Adjusted automotive free cash flow (billions of dollars) | 9.5 to 11.5 | 11.5 to 12.5 |
The shares were down about 5% at 9:04 a.m. Mexico City time and about 6%, to $77.87, in morning trading, according to 24/7 Wall St. Neither is a closing figure.
Chief Financial Officer Paul Jacobson warned that steel, aluminum and logistics costs have risen sharply in the past two months. If they do not ease, 2027 profit would lose about $2000 million. This year's tariffs would land at the low end of the $2500 million to $3500 million range.
CEO Mary Barra told analysts the company will have hybrids, without giving a timeline. Garrett Nelson of CFRA said not having them makes GM's path harder in a segment that accounts for more than 15% of U.S. sales.
None of the sources mentions GM's plants in Mexico, so any effect on production or jobs there is not documented. The next data point will be the stock's official close for Oct. 20.
