Why GM Stock Fell 6% After a Q3 Beat: Its 2026 Profit Outlook Midpoint Did Not Move
General Motors beat third-quarter estimates on October 20, 2026 and approved a new $20 billion buyback, but it narrowed its 2026 outlook instead of raising it. The stock fell 6.0% in ten minutes of premarket trading.
- GM earned $3.70 a share on an adjusted basis in the third quarter, above the $3.63 analysts expected, on revenue of $50.0 billion.
- It narrowed 2026 adjusted EBIT guidance to $14.5 billion to $15.5 billion from $14 billion to $16 billion, leaving the $15 billion midpoint unchanged.
- The new adjusted EPS midpoint of $13.25 is below the $13.42 analysts expected for the year; commodity costs rose to about $2 billion, including memory chips.
Reaction by asset (real prices)
| Asset | 2m before | At release | +1m | +10m | +1m % | +10m % |
|---|---|---|---|---|---|---|
| GM | 83.00 | 83.00 | 82.15 | 78.02 | -1.02% | -6.00% |
General Motors reported third-quarter adjusted earnings of $3.70 a share on Tuesday, October 20, 2026, above the $3.63 analysts expected, on revenue of $50.0 billion. The stock still fell in premarket trading. The results reached the MoveSurge news feed at 06:30:00 ET, and GM traded at $83.00 just before them and at $78.02 ten minutes later, a fall of 6.0%.
GM narrowed its 2026 adjusted EBIT guidance (earnings before interest and taxes) to $14.5 billion to $15.5 billion from $14 billion to $16 billion, which leaves the $15 billion midpoint where it was. Adjusted earnings per share guidance moved to $12.75 to $13.75 from $12.00 to $14.00. Its $13.25 midpoint is above the old $13.00 midpoint but below the $13.42 analysts expected for the full year.
| Third quarter | 2026 | 2025 |
|---|---|---|
| Revenue | $50.0 billion | $48.6 billion |
| Net income | $3.3 billion | |
| Adjusted EBIT | $4.1 billion, up 22% | |
| Adjusted EPS | $3.70 (expected $3.63) | |
| North America adjusted EBIT margin | 8.7% | 6.2% |
| GM International segment profit | $28 million | $226 million |
| China joint venture equity income | $32 million | $80 million |
Strong trucks, higher costs
Demand for higher-priced pickups and SUVs lifted North American adjusted EBIT to $3.6 billion and its margin to 8.7% from 6.2%, while profit outside North America and from the Chinese joint ventures fell. GM now expects commodity inflation of about $2 billion this year, the top of its earlier estimate, with freight and DRAM memory chips among the drivers. Gross tariff costs, by contrast, are tracking toward the low end of its $2.5 billion to $3.5 billion range.
A new $20 billion buyback
After finishing a $6 billion repurchase, GM's board approved a new $20 billion, multiyear buyback. The share count fell to 849 million on September 30 from 904 million at the end of 2025, a drop of 6.1% (our calculation). GM also raised its 2026 adjusted automotive free cash flow guidance to $11.5 billion to $12.5 billion from $9.5 billion to $11.5 billion, and declared a quarterly dividend of $0.18 a share, payable December 17.
How GM stock traded after the release
GM had closed Monday at $82.75. On the one-minute chart, the first full candle after the 06:30 ET release closed at $80.12, down 3.47%, and the stock reached $77.45 after 15 minutes, down 6.69%. The reaction reading, which takes the price within the first minute, put GM at $82.15 one minute after the release, down 1.02%, and at $78.02 after ten minutes. In July, after second-quarter results that also beat estimates, GM fell 1.1% in the first 15 minutes.
Why is GM stock down today?
GM beat third-quarter estimates on October 20, 2026, but it narrowed its 2026 adjusted EBIT guidance to $14.5 billion to $15.5 billion, leaving the $15 billion midpoint unchanged, and its adjusted EPS midpoint of $13.25 sits below the $13.42 analysts expected. The stock fell 6.0% in the ten minutes after the release.
What is GM's 2026 guidance?
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, as of October 20, 2026.
How big is GM's new share buyback?
GM's board approved a new $20 billion multiyear repurchase program after GM completed a $6 billion buyback. Its share count fell to 849 million on September 30 from 904 million at the end of 2025.
Sources
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GM releases 2026 third-quarter results and updates full-year 2026 guidance; Board approves new $20 billion share repurchase authorization
— General Motors via PR Newswire
Q3 revenue and net income; updated 2026 adjusted EBIT, EPS and automotive free cash flow guidance; new $20 billion buyback; $0.18 dividend payable December 17.
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General Motors (GM) earnings Q3 2026
— CNBC
Adjusted EPS $3.70 against $3.63 expected (LSEG); prior guidance ranges; revenue a year earlier.
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GM's core profit rises 22%, beats estimates
— Reuters via The Globe and Mail
Adjusted EBIT up 22%; commodity inflation of about $2 billion including freight and memory chips; tariffs at the low end of the range.
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GM stock falls despite third-quarter earnings beat
— Investing.com
Shares fell in premarket trading despite the beat; full-year EPS consensus; October 19 close.
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GM's core profit rises 22% on strength of pickup-truck business
— The Detroit News
North America adjusted EBIT and margin; GM International and China joint venture results.
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