GM reported net income of $487 million for the quarter on Tuesday, down from $589 million in 2025. The company narrowed its 2026 earnings guidance and raised its free cash flow expectations.
The Detroit automaker also announced a new multiyear $20 billion stock buyback after it completed a $6 billion share repurchase program announced in January.
In Q3, GM’s North American operations continued to lead the automaker’s results, accounting for $3.6 billion of its $4.1 billion in adjusted EBIT results during the third quarter.
GM’s new 2026 guidance includes adjusted earnings before interest and taxes of $14.5 billion to $15.5 billion, adjusted earnings per share of $12.75 to $13.75, and adjusted automotive free cash flow of $11.5 billion to $12.5 billion.
The company said it expects commodity inflation costs to total about $2 billion, at the high end of its previous guidance. This figure includes increased costs for logistics and dynamic random-access memory (DRAM) chips.
Although inflation-related costs were at the high end of the automaker’s guidance, GM said its gross tariff costs are expected to be at the low end of its projected range of $2.5 billion to $3.5 billion.
GM also said warranty costs are expected to be at the high end of the $1 billion to $1.5 billion range.
In a letter to shareholders, GM CEO Mary Barra said:
“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. Over the next several years, our portfolio will only get stronger as we complete the launches of the all-new 2027 Chevrolet Silverado and GMC Sierra light duty pickups and follow them with our next-generation heavy duty pickups, our next-generation full-size SUVs, all-new Cadillac sedans and crossovers, and more.”
Barra added, “For the full year we are on track to approach $7.5 billion in margin-accretive deferred revenue from software and services. Trucks will be a big driver of incremental Super Cruise adoption and digital revenue in 2027 as we make the technology standard on high-end Silverado and Sierra trims, and optional on most others. We are expecting Super Cruise penetration in our truck portfolio to grow 4-5x next year.”
“The compelling products, technology, and services we are delivering for customers around the world make us confident in the consistent, long-term growth of our earnings and cash generation, as well as our ability to return capital to shareholders. We think this is a proven strategy. The new $20 billion multi-year share repurchase authorization we announced today further demonstrates our Board’s commitment to creating even greater shareholder value,” she concluded.
GM stock fell 5% following the announcement.
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