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North America delivered most of Q3 profit as GM lifted 2026 free cash flow and set a $20B buyback; shares fell roughly 7% premarket.
GM Q3 earnings beat LSEG estimates, with adjusted EPS of $3.70 against $3.63 and revenue of $50.02 billion versus $48.7 billion, the report said. GM narrowed its 2026 guidance, raised its free cash flow outlook and announced a new $20 billion multiyear buyback with no disclosed timetable. Shares were off roughly 7% in premarket trading.
North America delivers most of Q3 EBIT
GM said its North American operations generated $3.6 billion of $4.1 billion in adjusted EBIT for the quarter. That is about 88% by arithmetic on the figures.
Guidance tightens, cash outlook rises
GM’s new 2026 outlook calls for adjusted EBIT of $14.5 billion to $15.5 billion, adjusted EPS of $12.75 to $13.75, and adjusted automotive free cash flow of $11.5 billion to $12.5 billion. In July, the ranges were $14 billion to $16 billion for EBIT, $12 to $14 for EPS, and $9.5 billion to $11.5 billion for free cash flow. On those ranges, the EBIT interval narrows from $2 billion wide to $1 billion with the midpoint unchanged, the EPS midpoint increases by $0.25, and the free cash flow midpoint rises from $10.5 billion to $12.0 billion.
GM expects commodity inflation costs to be about $2 billion, at the high end of its prior view, and said gross tariff costs should land at the low end of a $2.5 billion to $3.5 billion range. Warranty costs are expected at the high end between $1 billion and $1.5 billion. CFO Paul Jacobson said vehicle pricing is relatively flat as inflationary costs increase, adding, “Our fourth quarter’s going to be down sequentially.”
CEO Mary Barra wrote, “GM is performing well, and we are working hard to continue our momentum despite growing inflationary pressures through strategic investments in new products and services, and through improved quality and operating efficiency.”
The automaker announced a new $20 billion stock repurchase program after completing a $6 billion buyback that was announced in January. GM did not disclose how long it plans to take to complete the new program.
GM said the costs of its all-electric vehicle pullback announced last year were “substantially completed,” with $11.2 billion in charges recorded since the second half of last year. That includes paying $4.6 billion of $7.4 billion in cash through the third quarter; $7.4 billion against $4.6 billion implies about $2.8 billion of the cash portion yet to be paid at that point.
Net income attributable to stockholders was $3.3 billion in the quarter, up roughly $2 billion from a year earlier, the report said. GM’s 2025 third-quarter results included $48.59 billion in revenue, net income of $1.3 billion and $2.80 adjusted EPS.
Source: CNBC.
This article was written with AI assistance and reviewed by an editor.
This content is for informational purposes only and does not constitute financial advice.
🧠 HafidWatch Take
Despite solid year-over-year increases in revenue and adjusted EPS, the outlook’s tightening on earnings and cash flow guidance, along with elevated inflationary and warranty costs, likely weighed on investor sentiment. Additionally, the sequential decline expected in the fourth quarter may have contributed to the premarket share price drop, reflecting concerns about near-term performance despite long-term growth plans.
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