GM Approves $20 Billion Buyback After Q3 2026 Earnings Beat
Adjusted EBIT rose 21.6% to $4.1 billion as GM raised free cash flow guidance and completed a $6.0 billion buyback.
- On Tuesday, GM Chair and CEO Mary Barra reported third-quarter revenue of $50.0 billion, surpassing analyst expectations of $48.7 billion, and authorized a new share repurchase program.
- Adjusted earnings before interest and taxes rose 21.6% to $4.1 billion, driven by North America's strong performance where EBIT reached $3.6 billion and margins expanded to 8.7% from 6.2%.
- GM raised its adjusted automotive free cash flow forecast to between $11.5 billion and $12.5 billion, though it expects commodity-related inflation to cost roughly $2 billion from logistics and memory chips.
- Despite strong earnings, GM stock fell about 5% in premarket trading on Tuesday; the board declared a quarterly cash dividend of $0.18 per share, payable December 17.
- Barra narrowed full-year 2026 adjusted EBIT guidance to $14.5 billion to $15.5 billion, stating the company is "performing well" despite inflationary pressures and working to maintain momentum.
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GM CFO Paul Jacobson on $20B stock buyback: Driven by our stellar free cash flow generation
CNBC’s Phil LeBeau and General Motors CFO Paul Jacobson joins 'Squawk Box' to discuss the company's quarterly earnings results, details of a new multiyear $20 billion stock buyback, the company's hybrid portfolio, and more.
General Motors (GM) registered a profit of US$3.33 billion in the third quarter of 2026, high of 151.3% in the annual comparison. The American assembler had revenues of US$50 billion between July and September, growth of 2.9% over the same period of 2025. Material exclusive to subscribers. To have full access, access the link of the material and register.
US Stocks: GM's core profit rises 22% on strength of pickup-truck business
General Motors exceeded analyst expectations in third-quarter earnings, driven by robust demand for their pickups and SUVs. The company reported an adjusted EBIT of $4.1 billion, marking a 22% year-over-year increase. Despite facing inflationary challenges, GM forecasts an adjusted EBIT of $14.5 billion to $15.5 billion by 2026. Additionally, a $20 billion stock buyback program was initiated to bolster share value.
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