General Motors reported third-quarter results that surpassed Wall Street’s earnings and revenue expectations, with adjusted earnings per share of $3.70 and revenue reaching $50.02 billion. Despite this strong performance, the company’s stock dropped nearly 7% due to a narrowed full-year guidance that fell short of analyst forecasts. GM now anticipates adjusted EBIT between $14.5 billion and $15.5 billion, and adjusted automotive free cash flow between $11.5 billion and $12.5 billion for 2026, tightening the ranges it provided in July.

The automaker also announced a new multiyear stock buyback program worth $20 billion, following the completion of a $6 billion buyback that began earlier this year. GM did not specify a timeline for executing this latest repurchase plan. CFO Paul Jacobson highlighted the company’s robust free cash flow generation as a key driver behind the new buyback initiative, though he acknowledged challenges such as rising commodity inflation and pressures on vehicle pricing.

GM faces increasing costs, including an estimated $2 billion in commodity inflation driven by higher expenses in logistics and DRAM chips, with tariffs expected toward the lower end of the projected $2.5 billion to $3.5 billion range. Warranty costs also remain elevated. While vehicle pricing has remained mostly flat in the face of inflationary pressures, GM is carefully monitoring consumer demand to determine if significant price increases will be necessary next year. CEO Mary Barra emphasized the company’s ongoing efforts in product innovation, quality improvements, and operational efficiency to sustain momentum.

The company reported net income attributable to shareholders of $3.3 billion for the quarter, reflecting a significant increase from $1.3 billion in the same period last year. North American operations were a major contributor to earnings, generating $3.6 billion of GM’s $4.1 billion in adjusted EBIT during Q3. GM has nearly completed the costs associated with its previous pullback in the all-electric vehicle segment, totaling $11.2 billion in charges since mid-2025. Despite the challenges, GM maintained a cautiously optimistic outlook for the remainder of the year.