General Motors $GM reported third-quarter adjusted earnings of $3.70 per share on Tuesday and said its board approved a new $20 billion multi-year stock buyback.
Revenue was $50.0 billion, a 2.9% increase over the same period last year. Net income attributable to stockholders was $3.3 billion, compared with $1.3 billion a year earlier. Adjusted earnings before interest and taxes (EBIT) rose 21.6% to $4.1 billion. Analysts expected adjusted earnings of $3.63 per share and revenue of $48.7 billion, according to CNBC. GM stock was down about 5% in premarket trading, according to CNBC.
The new repurchase authorization has no expiration date and may be suspended or discontinued at any time at the company's discretion, GM said. The company said it completed the $6.0 billion buyback program it announced in January. GM had 849 million shares outstanding as of Sept. 30, down from 904 million at the end of 2025.
GM narrowed its full-year 2026 adjusted EBIT guidance to $14.5 billion to $15.5 billion from $14.0 billion to $16.0 billion. It raised its adjusted automotive free cash flow forecast to $11.5 billion to $12.5 billion from $9.5 billion to $11.5 billion. Adjusted diluted earnings per share are now expected at $12.75 to $13.75, compared with a prior range of $12.00 to $14.00.
North America led the quarter. GM North America's adjusted EBIT was $3.6 billion, and its margin rose to 8.7% from 6.2% a year earlier. GM leaned more heavily on big pickups in the quarter and moved fewer EVs.
The company said it expects commodity-related inflation to cost roughly $2 billion, at the top of its earlier outlook, driven partly by pricier logistics and memory chips. GM said it anticipates gross tariff costs landing at the bottom of the range between $2.5 billion and $3.5 billion it had projected, with warranty costs at the top of a $1 billion to $1.5 billion estimate.
"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," GM Chair and CEO Mary Barra said in a letter to shareholders, according to CNBC.
The board also declared a quarterly cash dividend of $0.18 per share, payable Dec. 17 to holders of record at the close of trading on Dec. 4. Barra and Chief Financial Officer Paul Jacobson are scheduled to host a conference call for investors and analysts at 8:30 a.m. ET on Tuesday.
GM and Micron $MU Technology formalized a long-term supply agreement for memory and storage chips in July. GM described the deal as a precaution to secure access to key components, not a response to a current supply problem.
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