GM (GM) Q3 Beats Estimates with $3.70 EPS; $20B Stock Buyback Announced

General Motors (GM) reported third-quarter earnings per share of $3.70, beating the Wall Street estimate of $3.63. Its revenue reached $50.02 billion, exceeding the expected $48.7 billion. Following this, GM narrowed its full-year 2026 earnings guidance to adjusted EBIT of $14.5 billion to $15.5 billion and adjusted EPS of $12.75 to $13.75. The company also raised its adjusted automotive free cash flow guidance to between $11.5 billion and $12.5 billion.

GM announced a new multiyear stock buyback plan valued at $20 billion, after completing a $6 billion share repurchase program earlier in the year. Despite beating earnings and revenue expectations, GM's stock fell approximately 5% in premarket trading. The company expects commodity inflation costs around $2 billion and warranty costs near the high end of its $1 billion to $1.5 billion range. Tariff costs are anticipated at the low end of the $2.5 billion to $3.5 billion range. Vehicle pricing remains flat amid inflationary pressures.

The results matter because GM's adjusted earnings and free cash flow guidance changes reflect expectations of inflation and cost pressures, impacting investor returns and the dynamics of pricing strategies. The $20 billion buyback signals confidence in the stock's value but the share price reaction highlights market concerns about cost inflation. Investors should watch GM's free cash flow and earnings guidance revisions as key indicators of underlying cost management and profitability trends.