GM (GM) posted third-quarter results before the bell that topped estimates, toughened its full-year earnings outlook rather than raising it, but instead issued shareholders a new $20 billion share buyback program. For the quarter, GM posted third-quarter revenue of $50 billion, up 2.9% from a year ago and above the Bloomberg consensus of $48.52 billion. GM reported adjusted EPS of $3.70 versus the estimated $3.57, with adjusted EBIT of $4.1 billion, ahead of the expected $4.02 billion and up nearly 22%. But the big update was the orientation. For the full year, GM now expects: Adjusted EBIT of $14.5 billion-$15.5 billion (previously $14.0 billion-$16.0 billion) Adjusted EPS of $12.75-$13.75 (previously $12.00-$14.00) Adjusted automotive free cash flow of $11.5 billion-$12.5 billion (previously $9.5 billion-$11.5 billion million) 82.75 -1.21 (-1.44%) At Close: Oct 19 4:00:03 pm EDT 77.09 -5.63 (-6.81%) Pre-Market: 9:14:37 am EDT Investors were expecting more as the stock is taking a hit in pre-market trading – down more than 7%. Both ranges maintain the same midpoints as before ($15 billion and $13.25), meaning GM reduced both the upside and the downside. GM also raised its adjusted automotive free cash flow forecast to $11.5-12.5 billion, from $9.5-11.5 billion. GM’s board of directors approved a new multi-year authorization worth $20 billion with no expiration date. GM also declared a quarterly dividend of $0.18 per share. “We believe this is a proven strategy,” GM CEO Mary Barra wrote in her letter to shareholders. “The new $20 billion multi-year stock repurchase authorization we announced today further demonstrates our board’s commitment to creating even greater value for shareholders.” Barra also said GM is working to continue its momentum “despite rising inflationary pressures.” This is seen with GM’s rising costs. GM now expects raw materials inflation of around $2 billion (the top of its previous range of $1.5 billion to $2 billion), including logistics and memory chip (DRAM) costs. It also reduced its expected regulatory profits to around $500 million from a high of $750 million. To offset that, the gross costs of the tariffs are approaching the lower end of their $2.5 billion to $3.5 billion range. A 2026 Chevrolet Silverado 2500 HD LTZ on display at the New York International Auto Show at the Javits Convention Center in New York on April 1, 2026. (NDZ/STAR MAX/IPx) · NDZ/STAR MAX/IPx Earlier this month, GM reported third-quarter U.S. sales of 670,974 vehicles, a 5.5% drop compared with a year ago, as a collapse in sales of electric vehicles offset gains in its trucks and small SUVs. According to GM’s model-by-model numbers, EV sales fell about 62% to about 25.5 thousand units, shrinking to less than 4% of GM’s U.S. volume from more than 9% a year ago. Excluding electric vehicles, GM sales were essentially flat, up 0.3%. Sales of the Chevrolet Equinox EV fell 92.4% to 1,905 units, the Blazer EV fell 84.4%, the GMC Hummer EV fell 72.9% and the Cadillac Lyriq fell 50.5%.
