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GM Beat Earnings Forecasts, Raised Its Cash Outlook and Approved a $20 Billion Buyback. Pickups Did the Heavy Lifting
- GM's Q3 2026 revenue was $50.0 billion, up 2.9%. Adjusted EPS was $3.70, versus about $3.63 expected and $2.80 a year ago.
- Net income was $3.3 billion, versus $1.3 billion a year earlier. EBIT-adjusted rose 21.6% to $4.1 billion.
- North America EBIT-adjusted rose 43% to $3.6 billion, an 8.7% margin. International profit fell to just $28 million.
- 2026 adjusted automotive free cash flow guidance rose to $11.5-12.5 billion from $9.5-11.5 billion.
- GM finished a $6 billion buyback and approved a new $20 billion authorization. Its share count fell to 849 million from 904 million at the end of 2025.
What happened
General Motors reported third-quarter results before the market opened on Tuesday, October 20. It beat Wall Street's forecasts, raised its cash outlook and announced one of its biggest-ever share buybacks.
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Revenue | $50.0 billion | $48.6 billion |
| Net income | $3.3 billion | $1.3 billion |
| EBIT-adjusted | $4.1 billion (8.2% margin) | $3.4 billion (6.9%) |
| Adjusted EPS | $3.70 | $2.80 |
| North America EBIT-adjusted | $3.6 billion (8.7% margin) | about $2.5 billion |
| International EBIT-adjusted | $28 million | $226 million |
| GM Financial EBT-adjusted | $668 million | $804 million |
| Adjusted automotive free cash flow | $5.9 billion | $4.2 billion |
Source: GM earnings release (Form 8-K), October 20, 2026. Analysts expected adjusted EPS of about $3.63 and revenue of about $48.7 billion, according to CNBC.
Pickups, not EVs
Almost all of the profit came from North America, where earnings jumped 43%. GM gave three reasons:
- More full-size pickups and SUVs in the sales mix. These are GM's most profitable vehicles.
- Smaller EV losses after it cut electric vehicle capacity this year. EV-related charges were $238 million in the quarter and $3.6 billion so far in 2026.
- Lower warranty costs.
Outside North America the picture was weak. International profit fell almost 90% to $28 million, and income from GM's China joint ventures dropped to $32 million from $80 million.
The new guidance
| 2026 outlook | New | Previous |
|---|---|---|
| EBIT-adjusted | $14.5-15.5 billion | $14.0-16.0 billion |
| Adjusted EPS | $12.75-13.75 | $12.00-14.00 |
| Adjusted automotive free cash flow | $11.5-12.5 billion | $9.5-11.5 billion |
GM narrowed its profit range and raised its cash forecast by about $2 billion at the midpoint. Cash is what pays for buybacks and dividends.
The $20 billion buyback
GM completed the $6 billion buyback announced in January and approved a new $20 billion authorization with no expiry date. It already cut its share count from 904 million at the end of 2025 to 849 million by September 30, about 6% fewer shares.
Fewer shares means each remaining share owns a bigger slice of future profits. That's a big reason GM's earnings per share rose 32% while its revenue rose only about 3%. We explain the mechanics, and the debate over whether buybacks are good for shareholders, in Share Buybacks Explained.
GM also kept its quarterly dividend at $0.18 per share, payable December 17.
What it means for investors
- Autos are a pickup business. GM's profits depend heavily on big trucks staying popular and gas prices not scaring buyers away. With gasoline up more than 30% this year, that's worth watching.
- Tariffs and trade: GM builds vehicles across the US, Canada and Mexico. Changes to trade rules can shift costs quickly.
- Peer check: Tesla reports on Wednesday, October 21. The contrast between GM's truck-driven profits and Tesla's EV-only model will be sharp.
What to watch next
- October 21: Tesla's third-quarter results.
- Pickup demand if gas prices stay high.
- How fast GM uses the new $20 billion buyback.
Frequently asked questions
How did GM do in Q3 2026?
GM reported adjusted earnings of $3.70 per share on revenue of $50.0 billion for the third quarter of 2026, beating forecasts of about $3.63 and $48.7 billion. Net income was $3.3 billion, up from $1.3 billion a year earlier, and EBIT-adjusted rose 21.6% to $4.1 billion.
How big is GM's new share buyback?
GM's board approved a new $20 billion share repurchase authorization with no expiration date on October 20, 2026, after completing the $6 billion program announced in January. GM had 849 million shares outstanding at September 30, down from 904 million at the end of 2025.
What is GM's 2026 guidance?
GM now expects 2026 EBIT-adjusted 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, up from $9.5 billion to $11.5 billion.
Why did GM's profit rise?
Mostly North America. GM credited a richer mix of full-size pickups, smaller losses on electric vehicles after it cut EV capacity, and lower warranty costs. North American EBIT-adjusted rose 43% to $3.6 billion. Results outside North America and in China were much weaker.
Does GM pay a dividend?
Yes. GM declared a quarterly dividend of $0.18 per share, payable December 17, 2026, to shareholders of record on December 4.
Primary sources
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Oct 20, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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