Stellantis shares are cratering ahead of a quarterly report that management already warned would be seasonally weak, and Ford and General Motors are getting dragged down with it. Whether next week's results steady the sector or deepen the rout depends…
Selling is sweeping through automaker stocks, and Stellantis N.V. (NYSE:STLA | STLA Price Prediction) shares are taking the biggest damage as the company’s Q3 2026 report approaches next week. Stellantis shares have dropped 8%, recently at $3.94, leaving the stock 64% lower year to date (YTD).
Meanwhile, Ford Motor (NYSE:F) stock is down 4% to $11.47. General Motors (NYSE:GM) shares are down 3% to $74.91, showing the pressure spans the automakers.
The Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) is down 2% to $113.07, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.7% to $758.94. Thus, the aforementioned automotive stocks are trailing both the consumer discretionary sector and the overall market.
Stellantis Bears the Brunt of the Auto Selloff Stellantis hasn’t issued a guidance change or operational update that would account for the decline. Recent company releases center on product and brand news for Jeep, Dodge and Mopar, along with a Q3 sales report. With peers falling and earnings approaching, the move fits a sector pullback heading into results.
A day earlier, Stellantis and Alumobility, an aluminum industry association, presented a joint study finding that an aluminum-intensive design could cut vehicle weight and allow a smaller battery with the same driving range. The findings are theoretical.
Stellantis Carries a Different Risk Profile Than Ford and General Motors Stellantis earns much of its profit from Jeep and Ram in North America, and it also runs a large European business. Ford and General Motors are more concentrated in the U.S. market, which leaves Stellantis managing a wider set of regional challenges. Management highlighted pricing pressure in Europe on the Q2 2026 earnings call, and the region posted an adjusted operating loss for the quarter.
Stellantis’s margins remain the weak spot. In Q2, the automaker posted a 1.8% adjusted operating margin. Progress showed up elsewhere, with Stellantis swinging to a net profit from a year-earlier loss and North America sales growing 6% in a fourth consecutive quarter of gains.
As of June 30, the consumer discretionary fund held Ford at 1.4% and General Motors at 1.7% of net assets. Stellantis didn’t appear among its disclosed holdings, so the fund’s drop draws on a much wider mix of retail, travel and restaurant stocks.
On the upside, management expects Stellantis’s savings program to deliver €6 billion of annual run-rate cost reductions by 2028. The downside case centers on its credit profile, after S&P downgraded Stellantis to BBB- and Moody’s cut it to Baa3.
Stellantis Turnaround Heads Into Its Q3 Test Stellantis’s third-quarter report next week may show whether its turnaround plan is gaining working. Joao Laranjo, the finance chief at the time of the Q2 call, stated that “Q3 will be impacted by the summer shutdown and continued raw material inflation.” Management expects Q4 2026 to benefit from higher volume and a stronger ramp of cost-saving initiatives, and it has reaffirmed full-year 2026 guidance for mid-single-digit revenue growth along with positive industrial free cash flow in 2027.
An open variable for Ford and General Motors is the tone of automaker trading once Stellantis reports. The question is whether the XLY consumer discretionary fund keeps lagging the SPDR S&P 500 ETF Trust as earnings season moves through the sector.
A large YTD loss already weighs on Stellantis heading into a quarter management called seasonally weaker. Solid results could ease that pressure, while another soft quarter might extend the slide. Investors should consider keeping their position sizes modest until sentiment turns positive on STLA stock.
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Developing new EV battery technology takes years of research. General Motors, for example, says it’s put a decade of effort into lithium manganese-rich, or LMR, batteries, which aren’t yet in any of their vehicles on the road.
But recently, the automaker says it made a big leap in that work. Using computer modeling, GM was able to virtually test more than 300,000 LMR battery pack configurations, advancing from first concept to formal approval in under a month.
That represents more than 300 million CPU hours, which would take a typical computer 34,000 years, while running 24 hours a day, to complete, according to GM.
GM is leaning into artificial intelligence and virtual simulations to develop its vehicles. That not only speeds up the time to do testing, per the company, but allows it to test more options, rather than picking the best of just a few configurations.
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Those 300,000 formulations, for example, looked at different chemical combinations, temperature cycling, and other approaches to creating a battery cell, Sterling Anderson, GM’s chief product officer, told Fast Company.
“If we had not had the luxury of some of these tools, we would have had to sample more sparsely from what was possible,” he says.
[Photo: GM]Speeding up vehicle developmentGM is bringing this AI approach beyond battery testing and into all areas of its vehicle development, with the aim of slashing the time it takes to develop a car in half.
When General Motors launched OnStar 30 years ago, it was a novel way to connect people to the internet while they were inside their cars: Press the button on the rearview mirror, and the system calls an OnStar agent who can see your location, give directions, and send out first responders in the event of a crash.
That was years before the first iPhone debuted. Today, most people carry smartphones that can give directions and detect crashes.
To go beyond those use cases, OnStar is now getting an upgrade for the AI age—one that turns it into more of a personal assistant.
“Hey OnStar, it’s getting warm in here,” you could say while driving. In response, the temperature in your vehicle’s cabin will automatically adjust, without you having to navigate your car’s touch screen. Say “It’s too dark in here,” and it will turn on the interior lights.
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[Image: GM]Or you might ask what that beeping you heard was, and it will explain if it was from a safety feature, like a sensor that alerts you if you’re close to another vehicle or going above the speed limit.
There’s still the opportunity to connect with a real person through OnStar, GM says, as the tool will be “complemented” by human support. If you tell OnStar you’re worried about a warning you saw on your dash, for example, it may ask if you want to connect to a live advisor.
“Proprietary connected intelligence”OnStar AI Assistant will launch later this year in the 2027 Cadillac LYRIQ through an over-the-air update, before rolling out to more GM vehicles.
When GM announced its new fourth-generation EV platform on Wednesday, what the automaker didn’t share was almost as notable as what it did.
The new EV platform, part of a series of technology-focused announced during its annual GM Forward event in New York, didn’t talk about suspension geometries, dash-to-axle ratios, and torsional rigidity, all nerdy automotive terms that translate to how people will experience a car. Is it supple or sporty? Does it have a refined stance? When it hits a pothole, does it feel like a bank vault or a paper plate?
Instead, GM’s announcement centered on novel battery chemistries, revamped electric motors, and an entirely new central computing platform and electrical architecture that will connect every system in the car, including acceleration and power, steering, braking, and active safety features as well as software. Lots and lots of software.
“We think vehicles can become a more capable and helpful part of everyday life if we make them spaces that understand context, reduce friction, and give people back moments that would otherwise be consumed by the demands of the road,” Sterling Anderson, executive vice president, global product, and chief product officer at GM, told TechCrunch in a recent interview.
That sure doesn’t sound like a traditional automaker’s pitch. Then again, since the arrival of Tesla, Rivian, and Chinese automakers, the industry hasn’t been the same. Ride and handling still matter, but they’re table stakes. What sets vehicles apart today is largely defined by software.
Anderson has talked about this future GM before. Last year, the company announced plans to overhaul the electrical and computational guts of its future vehicles in a bid to deliver faster software, more capable automated driving features, and a custom, conversational AI assistant.
This year, GM is providing more details and dates. This technological overhaul is set to debut in 2028 with the Cadillac Escalade IQ. The company will also rollout an autonomous highway driving feature in 2028 that will allow drivers to have their hands and eyes off the road and without the need to be ready to take over.
The software race includes hardware Image Credits:GM / European and U.S. automakers have spent years chasing the prospect of software-defined vehicles, but have often fallen short. Volkswagen Group had so much trouble with its own in-house effort, including its troubled Cariad unit, that it struck a $5.8 billion joint venture deal with relative newcomer Rivian.
GM has been on its own capitally intensive software adventure. The company has bet heavily on software in recent years. It ditched the popular smartphone projection technology Apple CarPlay for nearly all of its EVs, and instead turned to a Google-based infotainment system, which is actually quite capable even if it doesn’t yet live up to the standards set by Tesla and Rivian.
It’s poured billions into software and autonomous vehicle technology development too. GM’s capitalized software amortization expense in 2025 was $866 million, which gives a sense of how much it is spending even as it spreads out the cost over years.
Like many legacy automakers, GM has come to the conclusion that the old approach to electronics, which scattered computer chips throughout the vehicle, was holding it back.
For fourth-generation EVs, GM will centralize much of those functions on a Central Compute Unit (CCU) that’s 40-times more powerful than its existing systems. Eliminating smaller chips on the edges will help trim wiring by 30%, saving weight and simplifying assembly.
GM notes that this new CCU will work on fossil fuel models, too, though it will debut in the Cadillac Escalade IQ, a vehicle that is shaping up to be the automaker’s technological flagship.
The CCU will handle the usual propulsion and chassis controls, but also perception and active safety. That should help pave the way for more advanced autonomy features, which GM also announced on Wednesday.
Such a move was perhaps inevitable. Pressure on automakers has been building on all sides.
Domestically, Tesla has been pushing the boundaries of autonomy, in part because it developed a true software-defined vehicle.
Automakers like GM are also feeling pressure from Chinese manufacturers, which have shortened development cycles to two to three years, down from the usual four to five years.
GM intends to match that cadence. Alongside announcements about battery chemistries and autonomy, GM outlined how enterprise AI tools have sped up vehicle development across every sector as it pushes to slash its traditional four-to-five-year development timeline in half.
GM gave a brief glimpse of its revamped development strategy. One example: engineers went through 300,000 virtual designs of a new lithium-manganese-rich battery pack before they assembled the first physical prototype. That helped the concept move to an approved program in one month.
Such speed will help GM save costs as it races to preserve profitability amid a historic upheaval in the automotive industry. But will it be enough to catapult it back into the leadership position it once enjoyed?
The rise of Chinese automakers won’t make it easy. Their factories are capable of producing far more than Chinese consumers can absorb, and coupled with government subsidies and cheaper labor, these vehicles have flooded markets from Europe to South America with inexpensive vehicles.
Chinese automaker’s cost advantage is so steep that, without trade barriers, “they will pretty much demolish most other companies in the world,” Elon Musk said in a 2024 earnings call. In response, he has been trying to pivot Tesla from an automotive company to an AI and robotics company.
GM’s move into autonomy signals a similar shift. But to deliver true autonomy, GM realized it didn’t have the platform it needed. With a new architecture, it should have a fighting chance.
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GM executives confirmed to Business Insider that humans are still staffing OnStar call centers to handle emergencies. General Motors GM is giving OnStar an AI overhaul. The automaker says it is not coming for the person who answers when your airbags deploy.
On Wednesday, during the company's tech conference, GM Forward, Ed Nightingale, GM's vice president of digital products, told Business Insider that the automaker would continue to use human OnStar staffers on emergency calls to contact first responders.
"That's something that isn't changing," Nightingale said. "We feel that, when it comes to a crash or a problem being solved, they want to make sure that there's a human in the loop. The stakes are too high."
After publication, a GM spokesperson told Business Insider that OnStar Advisors "aren't going away" and will remain a core part of the OnStar experience.
Humans-in-the-loop are a notable constraint on GM's AI ambitions compared to other software companies. Other AI-enabled companies, such as SpaceX, have recently highlighted how few customer calls are routed to humans.
GM said that keeping people involved in complex or sensitive situations is an intentional part of its AI strategy. Technology handles more routine interactions, while humans take the call during an emergency.
It also comes as the company gives OnStar — its 30-year-old in-car emergency service — a much bigger job.
GM showed off OnStar AI on Wednesday. It's a new voice assistant designed to understand a vehicle and the driver using it. The automaker said it can answer questions about vehicle alerts, control some functions, plan routes around bad weather, and offer more context-aware suggestions, including from information through a driver's digital calendar.
The assistant will arrive first on the 2027 Cadillac Lyriq via an over-the-air update in the coming months, GM said. Other vehicles will follow.
GM also plans to unify its brand-specific mobile apps under the OnStar AI name next summer.
Onstage, Sterling Anderson, GM's chief product officer, said the company was turning the 30-year-old service into "an intelligent platform."
The shift is part of a large bet from GM.
GM is focusing heavily on its tech capabilities. On recent earnings calls, CEO Mary Barra has highlighted GM's subscription products. Anderson previously told Business Insider about how AI has allowed the company to cut product development time in half, starting with the GMC Hummer EV, which only took 20 months of development. Industry-average product development is typically around 5 years.
On Wednesday, the company also highlighted the development of its hands-off, eyes-off self-driving features, set to make their debut in the Cadillac Escalade IQ in 2028.
GM still has to persuade drivers that the new tools are valuable enough to use — and, in some cases, pay for.
Nightingale said subscriptions only retain customers when drivers can see the benefit.
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General Motors (GM -1.27%) released its third-quarter earnings and it was really a dueling narrative story. On one hand, a lot of data showed GM excelled with sales of highly profitable full-size trucks, despite an overall sales decline, with net income soaring compared to the prior year.
On the other hand, tariffs, commodity costs, onshoring production from overseas, and an increasingly difficult environment are headwinds that are going to provide speed bumps for automakers across the industry. All that aside, GM's third quarter had intriguing data that emphasized three big takeaways for investors.
Digital services becoming a second engine
One of the biggest developments for automakers such as General Motors and rival Ford Motor Company (F -2.06%) is growth in digital services which generate software-like high-margin business. Recognized revenue from OnStar increased 15%, compared to the prior year, to $800 million. With deferred revenue collected in advance for both OnStar and Super Cruise, revenue generated from GM's subscription services was on pace to reach $10.5 billion this year.
Further, GM is on track to add 1 million subscribers by the end of 2026 and with full-size truck redesigns on the way this fall the automaker expects Super Cruise penetration in its trucks to grow between four to five times in 2027. "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," GM CEO Mary Barra said in letter to shareholders.
Record repurchase authorization
Another massive development for GM was authorizing a record $20 billion for share repurchases. This has been a big driving force for GM's stock price as it's significantly reduced its outstanding share count with more than $42 billion toward share repurchases since 2015. At current prices, that $20 billion authorization has the potential to repurchase roughly a quarter of GM's shares outstanding. While investors often squabble about the advantages and disadvantages of returning value to shareholders via stock repurchases, rather than a lucrative dividend, investors can also see that GM's rise in share price has largely coincided with its reduction in outstanding shares.
GM data by YCharts
In addition to simply signaling management's confidence in its business going forward, share buybacks increase earnings per share, as profits remain at similar levels with a reduced number of shares to split between. Investors can also enjoy some tax efficiency because dividends are typically taxed as income the year they are received, while the value gained from repurchases can be capital gains that are deferred until the stock is sold.
GM's trade-off
General Motors hasn't changed its strategy of pushing sales of lucrative full-size trucks and high-margin subscription services, but the trade-off is that the gains in margin from higher-priced vehicles are essentially in exchange for lower volume of sales. GM's volume and deliveries are down, and a big driving force of that is its focus on more profitable and expensive vehicle sales while the rising average new-car price is forcing some consumers out of the market.
Image source: General Motors.
Further, GM has missed some opportunities with surging sales of hybrids while its U.S. sales declined 6.3% during the third quarter. For now, the trade-off is paying off on the bottom line as third-quarter revenue increased only 2.9% while net income jumped 151% to $3.34 billion. Investors will want to pay attention to how GM attacks the growing affordability problem in the U.S. and how it seizes the opportunity with rising hybrid sales.
Why the sell-off?
$76.11-$0.98 (-1.27%)
NYSE · As of 4:00 PM ET 10/21/26
Despite the impressive bottom-line growth during the third quarter, investors sent the stock down about 8% by mid-afternoon on Oct. 20th. GM also noted that "There are clear external headwinds, and in some cases they are intensifying," said CEO Mary Barra on a call with analysts. For instance, copper prices are at record levels and spot prices for steel have jumped as much as 50% from 2025, according to the Detroit automaker, and commodity inflation alone will hit GM by about $400 million in incremental costs in 2026. When investors add in rising logistics costs and memory chip prices, total commodity inflation is projected to cost GM about $2 billion this year.
For investors, it was a strong third quarter with net income blossoming, digital services expanding and turning into a second engine of profits, and a massive $20 billion authorized for share repurchases. While GM may be leaving some sales volume on the table in preference for more lucrative sales of its bread-and-butter trucks, GM seems to be firing on all cylinders even if uncertainty and rising costs continue to cloud over the global auto industry.
General Motors is adding a personal AI assistant to OnStar as part of a broader makeover of the subscription-based connected car service that the U.S. automaker launched 30 years ago.
The OnStar AI Assistant will debut in the 2027 Cadillac Lyriq EV in the coming months, with more GM vehicles to follow, the company said Wednesday at its GM Forward event in New York, where it made a series of other technology announcements covering software, automated driving, EVs, and its electrical architecture. The company said it will launch a new OnStar mobile app in 2027 that will complement and sync up with its in-car software.
The new OnStar mobile app will replace the current OnStar Guardian app that launched in 2020 as well as vehicle brand apps for Buick, Cadillac, Chevrolet, and GMC.
This tech-centric reboot is unlike other attempts to modernize OnStar and it notably puts agentic AI at the center. The company has updated the safety and roadside assistance service numerous times in its history, especially in the past five years as it tried to stay apace of emerging and tech-forward competitors like Tesla.
In 2021, the company expanded its OnStar Guardian app, which offered crash detection, emergency assistance and location sharing, to anyone with a compatible phone, even if they didn’t own a GM vehicle. A year later, GM started using Google Cloud’s conversational AI Dialogflow to recognize specific spoken requests and expanded in 2023 to give drivers responses to common queries like routing and navigation assistance — all part of GM’s plan to build a $25 billion subscription business by 2030.
GM continued to focus on generative AI, but relied on Google to provide the experience. The company said last year that Google Gemini would roll out in vehicles in 2026.
Image Credits:GM / The OnStar AI Assistant is an in-house effort and one aimed at giving the driver and passengers an interactive and custom experience — and become even more embedded in their daily lives.
“OnStar is now transitioning to be a connected intelligence platform, not just the call center that it’s historically been known as, but a mechanism for interpreting, understanding, and providing predictive, proactive support to its owners,” GM’s VP of global product and chief product officer Sterling Anderson told TechCrunch in an interview ahead of the GM Forward event.
For instance, cameras on the vehicle will be connected to the software to offer live views as well as crash and safety recordings. Users can set up the connected cameras to turn on automatically if the vehicle senses an impending event — for instance an aggressive horn honk — then capture the event and upload it to the OnStar app. Users will be able to use voice to control certain functions on the vehicle, including climate, and ask questions about any specific vehicle feature.
The launch coincides with efforts throughout the auto industry to stay apace of Chinese automakers with technology that is central to the vehicle — and no longer a slapped on gimmick or feature. But that has required GM to change its approach to software development, adopt AI tools, and even design a new electrical and centralized compute vehicle architecture.
The announcement also comes after GM has been criticized and even fined for sharing data with third parties. Earlier this year, the Federal Trade Commission finalized an order that bans General Motors and its OnStar telematics service from sharing certain consumer data with consumer reporting agencies. The finalized order also requires the automaker to be more transparent with its consumers and obtain their explicit consent on certain data collection.
GM said Wednesday that customers will have the ability to decide what data is shared, and that the recordings have time limits and are encrypted. GM said it and OnStar cannot access Connected Camera recordings.
A GM spokesperson later shared that third-party sharing a “feature-specific and consent-based, with information shared only as needed to provide requested functionality.” Customers can manage permissions and withdraw consent, however those who choose not to share certain data may have limited access to related features, while other OnStar services would continue, according to GM.
This article was updated to include comments from a GM spokesperson.
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Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.
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General Motors (GM.N) plans to offer “eyes-off” autonomous driving on its highest-selling, most profitable vehicles — big pickup trucks and SUVs — as it seeks fresh revenue streams from heavy technology investments.
Last year, GM said it would offer autonomous highway driving in 2028 on its pricey but light-selling Cadillac Escalade IQ, an electric SUV. On Wednesday, the automaker said it would expand the service to its pickup trucks and other large SUVs, without specifying a timeframe.
Many assisted-driving systems control steering and speed in certain settings —sometimes hands-free — but require the driver to remain attentive. Those include Tesla’s Full Self-Driving (Supervised) system and GM’s Super Cruise feature, which debuted about a decade ago.
Only a few automakers have introduced eyes-off systems, including Mercedes-Benz (MBGn.DE), with service typically limited to small geographic areas at low speeds, such as in stop-and-go traffic.
Some industry executives have said eyes-off driving that exchanges control back and forth from the car to the driver raises thorny safety and liability questions, and might not interest enough car shoppers.
Sterling Anderson, GM’s chief product officer who previously worked at autonomous-truck company Aurora, said GM is building "an autonomous system that operates safely on highways that actually gives you your time back.” He said GM will eventually expand the service to other roads.
NEW SOFTWARE BRAIN
GM is developing a new software backbone for future vehicles to deliver the automated-driving system and other digital features, expecting drivers will be willing to pay for them. GM executives outlined the plans during an event in New York on Wednesday.
A central computer will serve as the vehicle brain, allowing the car to receive remote updates like a smartphone. Tesla, Rivian and many Chinese automakers have jumped ahead of traditional automakers in designing the ability to beam software updates remotely to vehicles.
Anderson said inside GM, he refers to the new vehicles as “robots.”
“We're thinking a lot about the ways your life can be better … because your vehicle just knows what you need before you need it,” he told Reuters.
GM’s plan to transform cars into rolling, updatable computers is crucial to compete with Chinese automakers and EV-only brands such as Tesla, said Sam Abuelsamid, vice president of market research at Telemetry, an automotive research firm. If not, “they will fall even further behind the competitors.”
One reason traditional automakers have struggled with software is that they have long outsourced much of that work to suppliers, car executives and analysts have said. Anderson said GM is developing its new “central compute” model in-house, giving the company more control over updates and functionality.
“The world opens up when you control the software across the system in a way that it never was when various suppliers controlled” the car’s digital connections, Anderson said.
TARGETING HIGHER PROFIT MARGINS
Automakers reap average profit margins of around 10% selling vehicles. Software-related services can reach 30% to 40% margins, according to analysis firm PwC.
In a report last month, UBS estimated GM’s digital revenue will increase to $9.6 billion by 2036, from $3.2 billion this year. The bank called GM’s digital capabilities “an underappreciated and undervalued opportunity.”
Ed Nightingale, GM’s vice president of digital products, said GM aims to offer car owners appealing features, because it can’t start “charging for something as part of the core experience that you've always had.”
GM said it will introduce an AI assistant on the Cadillac Lyriq SUV in the coming months.
NEW YORK — General Motors plans to lean into artificial intelligence and vehicle software for future growth and development amid increasing competition abroad from Chinese automakers and a tougher U.S. market.
The Detroit automaker on Wednesday shared new details about a proprietary AI agent it's releasing under its OnStar brand, plans for a fourth generation of more efficient all-electric vehicles and a target to cut its vehicle development time in half.
GM also reconfirmed that by 2028, it wants to have eyes-off highway driving, or "personal autonomy," that will let drivers take their attention off the road. The automaker said that technology would start with the Cadillac Escalade IQ EV before rolling out to other, more high-volume models.
"All of these developments are building us the car of the future," CEO Mary Barra said Wednesday during an event laying out the plans, called "GM Forward," in downtown Manhattan.
The initiatives, which Barra, Chief Product Officer Sterling Anderson and other executives discussed at the event, are designed to streamline the automaker's operations, while also improving the capabilities of its vehicles for customers.
"Over the last 12 months, we've evolved how we design, engineer and build our vehicles," said Anderson, who led the event and who has been tasked with overseeing GM's latest technology transformation.
GM said it is now targeting a vehicle development time of roughly two years from concept to production versus a traditional four- to five-year cycle. However, the company did not detail a timeline for reaching that goal.
Read more CNBC auto newsTesla unveils long-delayed Roadster developed with SpaceX, fueling merger speculationPorsche reveals Mission S concept car that previews new design identityHow lower fuel economy targets could boost pickups and V-8 enginesStellantis CEO urges incentives for carmakers who build in Europe as Chinese rivals gain groundThe event comes as Chinese automakers are growing outside of the U.S. with rapid development times of new technologies and vehicles. Consulting firm AlixPartners said it believes China is currently bringing vehicles to market twice as fast as traditional automakers, with 40% to 50% less investment and a 30% cost advantage.
GM also continues to play catch-up to U.S. EV leader Tesla when it comes to delivering technology advancements through over-the-air updates and automated driving capabilities.
Next-generation vehiclesGM said Wednesday it has major plans for its next generation of EVs and traditional vehicles with internal combustion engines.
The company said those coming vehicles – regardless of type — will have 40 times the computing power and up to 50% faster cellular connectivity than prior systems.
That computing power is expected to help the automaker with over-the-air updates, onboard diagnostics and AI, as well as other technologies such as automated driving features.
The new brain of the vehicle will launch on the $130,000 Cadillac Escalade IQ EV in 2028 before rolling out to other models, including its next generation of EVs.
GM said the forthcoming EVs are expected to be 25% more aerodynamic and 15% lighter and feature electric motors and battery packs that are more compact.
AI developmentGM expects to achieve such targets through the use of AI in research and development.
The company said it is developing a "new operating approach for vehicle development" that leans into enterprise AI and virtualization to increase speed.
"This concurrent engineering model allows us to innovate faster, improve continuously, and scale new technologies across our lineup with incredible agility," the company said in a release.
GM used the development of its next-generation vehicles, including a new battery chemistry, as an example of how the new technologies are reshaping its vehicle development.
The company said it virtually tested more than 300,000 battery designs using its recently announced lithium manganese rich battery chemistry, or LMR, before building a single physical prototype.
Anderson said Wednesday that LMR will be the exclusive battery tech for its fourth-generation EVs. GM had previously said it wanted to use those batteries in full-size electric vehicles such as its Chevrolet Silverado and Escalade IQ beginning in 2028.
Anderson said GM is uniquely positioned to use AI compared to other automotive companies because of its more than 100 years in the industry as well as 30 years of OnStar.
"In the age of AI, data is currency," Anderson said. "For decades, GM's engineering, manufacturing and product teams have generated unparalleled body of data that we're now using to build industry-leading AI tools."
In-vehicle AIThe company is building on its internal use of AI to better shape its experiences for customers.
GM on Wednesday reconfirmed that it plans to launch a proprietary in-vehicle AI assistant through its OnStar technology brand.
The OnStar AI assistant is expected to launch in the coming months on the 2027 Cadillac Lyriq EV through an over-the-air update before expanding to other models.
GM currently uses Google's Gemini for its in-vehicle AI assistant. The company told CNBC earlier this year that the GM-developed AI will be more integrated with the vehicle.
The goal for OnStar AI, which will be available through a subscription, is to help customers be productive while in the car, especially if the vehicle has self-driving capabilities that don't require the driver or passengers to monitor the system.
GM on Wednesday also reiterated its plans to launch eyes-off highway driving in 2028. The automaker said a year ago that it wanted to launch that technology. It's been five years since Barra said she expected the automaker to offer personal autonomous vehicles this decade.
"Our vision is that eventually every vehicle should drive itself or its occupants anywhere, and we're investing across the self-driving stack to make that real," Anderson said.
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General Motors NYSE: GM did almost everything investors could have asked for in its third-quarter report on Tuesday, Oct. 20. It posted record revenue of $50 billion, beat estimates with adjusted earnings of $3.70 per share, and delivered $4.1 billion in adjusted operating profit.
It then unveiled a fresh $20 billion share buyback and told the market that the costly charges tied to its electric-vehicle pullback are now largely behind it.
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On paper, at least, that is a strong quarter paired with an aggressive return of capital. And yet the stock closed down nearly 7%.
The reaction raises a question worth digging into: What does the market see that the headline numbers don't account for?
More Than a Simple "Sell-the-News"It is tempting to write off the drop as a classic sell-the-news reaction, where a stock falls despite good results because the market had already priced them in. But that explanation feels too convenient, and the details point to something more specific.
The tell is in the guidance. GM spent the year raising its outlook, a clear sign of momentum. This time, rather than raising it again, it narrowed its full-year adjusted EBIT range to $14.5 billion to $15.5 billion, from $14 billion to $16 billion. Crucially, the midpoint did not budge, holding at $15 billion. For a company that had built a habit of under-promising and over-delivering, holding the line rather than nudging the target higher reads, at least to some investors, like a quiet admission that the easy gains may be behind it.
Where the Profit Actually Comes FromA closer look at the $4.1 billion operating profit helps explain the market’s concern. A striking $3.6 billion of it came from North America alone, driven by strong demand for high-margin trucks and SUVs that lifted the region's margin to 8.7%. In other words, nearly all of GM's profitability depends on a single market. That concentration is a double-edged sword: enormously lucrative while the North American consumer holds up, but a real exposure if that market softens, with few other growth engines to pick up the slack.
There is a second area of uncertainty, too. A good chunk of the year-over-year improvement did not come from selling more cars at higher margins. It came from GM no longer swallowing the heavy charges tied to its EV retreat. Stripping out a cost isn't the same as creating new growth, and once those charges are fully in the rearview mirror, that tailwind fades, and the underlying business has to carry the load on its own.
The Buyback Math, and Its LimitsThis is where the $20 billion buyback becomes the heart of the story. GM has been aggressively shrinking its share count, which has fallen to around 887 million diluted shares, roughly 8% below its level a year ago, following the completion of a prior $6 billion repurchase program in 2026. Fewer shares mean each remaining share claims a bigger slice of profit, mechanically lifting earnings per share even when total profit holds flat.
That is a genuine lever, and at a forward price-to-earnings ratio (P/E) under 6, GM is cheap enough that buying back its own stock is arguably an efficient use of cash. But it is worth being clear about what buybacks can and cannot do. They can boost earnings per share and support share prices, yet they generate no new operating profit. If GM's earnings plateau, as the unchanged EBIT midpoint suggests they might, buybacks become the main engine of per-share growth rather than a complement. A company shrinking its way to higher earnings per share (EPS) is a very different proposition from one growing its way there, and the market knows the difference.
What Could Re-Rate the Stock—And What Could Keep It CappedThat said, for investors weighing this stock, the bull case is genuinely compelling. GM trades at a rock-bottom valuation, generates enormous cash, dominates the profitable North American truck market, and returns mountains of capital to shareholders.
Current Price$75.63High Forecast$132.00Average Forecast$99.96Low Forecast$59.00General Motors Stock Forecast Details
Analysts remain constructive, with a Moderate Buy consensus and an average price target of $99.96, implying more than 30% upside. If GM can show that profit growth still has room to run through pricing, cost discipline, or a turnaround in its weaker segments, the stock could re-rate meaningfully from these depressed multiples.
The bear case, though, is the one the market voted for on Oct. 20. If profit has truly leveled off, resting on North American trucks and a shrinking share count rather than real growth, then the cheap valuation may fairly reflect that ceiling rather than a mistake to exploit. For now, investors appear to be pricing in exactly that, and GM will need continued execution to prove them wrong.
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Key Takeaways GM raised 2026 automotive free cash flow guidance to $11.5B-$12.5B after Q3 earnings and revenue beats.Sustained commodity prices could add $1B-$1.5B to GM's 2027 EBIT pressure, testing earnings growth.GM expects a roughly 35,000-pickup Q4 shortfall amid changeovers, with 2027 pickup production roughly flat.
General Motors Company (GM - Free Report) raised its 2026 cash flow outlook while warning that recent commodity inflation could complicate earnings growth in 2027. Its 2027 plans hinge on a smooth pickup launch and cost reductions.
The company’s adjusted earnings of $3.70 per share beat the Zacks Consensus Estimate of $3.55. Revenues of $50.02 billion surpassed the consensus mark of $48.21 billion.
GM Raises Full-Year Cash Flow ExpectationsCFO Paul Jacobson raised 2026 adjusted automotive free cash flow guidance to $11.5 billion-$12.5 billion compared with $9.5 billion-$11.5 billion previously. Capital spending should land in the lower half of its $10 billion-$12 billion range.
Adjusted EBIT guidance narrowed to $14.5 billion-$15.5 billion from $14 billion-$16 billion. Adjusted earnings guidance tightened to $12.75-$13.75 per share from $12-$14.
A TD Cowen analyst questioned cash flow sustainability. Jacobson credited lower capital spending and tariff refunds, later clarifying that the refund benefit would not recur in 2027.
General Motors Warns of 2027 Cost PressureJacobson pegged 2026 commodity, logistics and memory cost headwinds at roughly $2 billion, including $700 million of third-quarter year-over-year pressure, primarily from commodities.
Sustained commodity prices could add $1 billion-$1.5 billion in incremental 2027 EBIT pressure, bringing total headwinds to roughly $2 billion. Jacobson said earnings growth assumes some moderation.
Goldman Sachs and Wolfe Research analysts questioned those assumptions. Jacobson said costs must ease from recent levels before management could confidently project growth. Barra emphasized AI-enabled efficiencies and fixed-cost reductions, with formal 2027 guidance due in January.
GM Bets on Next-Generation PickupsChair and CEO Mary Barra expects redesigned Silverado and Sierra pickups to lift sales mix and technology adoption. Production began at Silao, with Fort Wayne and Orion launches to follow in 2027.
Jacobson expects a fourth-quarter year-over-year shortfall of about 35,000 full-size pickups due to changeover downtime. GM anticipates roughly flat pickup production in 2027 before added capacity supports growth in 2028.
A BofA Securities analyst questioned pricing upside. Jacobson cautioned against historical comparisons because outgoing trucks already command strong pricing.
General Motors Targets Lower EV and Warranty CostsJacobson expects EV losses to decline $1 billion-$1.5 billion this year as GM aligns capacity with softer demand. He anticipated additional, smaller improvements in 2027, followed by battery-related gains in 2028 and 2029.
Warranty expense improved $600 million year over year in the third quarter. Management now expects 2026 savings toward the high end of its $1 billion-$1.5 billion target. North America's adjusted margin reached 8.7%.
A UBS analyst pressed for EV break-even volume in 2029. Jacobson declined to specify one, citing evolving demand and next-generation batteries.
GM Expands Software and Defense AmbitionsBarra said deferred software and services revenue rose 40% year over year, with GM approaching $7.5 billion by year-end. She expects the installed base of Super Cruise-equipped vehicles to grow close to 50% in 2027.
Jacobson reported third-quarter OnStar Digital and Super Cruise revenues above $800 million, up 15%, and projected double-digit growth in 2027.
Barra highlighted GM Defense contracts supporting annual revenue growth of more than 30% and double-digit margins, including U.S. military vehicle programs and component deliveries to Lockheed Martin.
General Motors Extends Capital ReturnsBarra emphasized that the new $20 billion multiyear share repurchase authorization reflects the board's belief that GM shares remain undervalued. The prior $6 billion program is complete.
Jacobson cited $2.5 billion of third-quarter repurchases and another $1 billion in October. Shares outstanding fell to 849 million as of September-end from 904 million as of 2025-end.
Pressed by Morgan Stanley and Citigroup analysts, executives declined to specify repurchase timing, reaffirming investment and balance-sheet priorities.
GM Maintains Its Conditional Growth ObjectiveBarra framed 2027 as an opportunity to improve earnings through product launches, digital services and operating efficiencies, provided demand holds up and recent cost inflation moderates.
Barra balanced confidence in GM's product pipeline with caution over commodity prices and truck-launch execution.
General Motors' Zacks Rank and Style ScoresGM carries a Zacks Rank #3 (Hold). Its Value Score of A and Growth Score of B indicate relatively favorable valuation and growth characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s Momentum Score of F points to weak momentum characteristics, while its VGM Score of A reflects a strong combined style profile. These grades complement rather than override the Hold rank. The Zacks Rank can change as analysts revise estimates following the latest results.
GM just beat earnings and rewarded shareholders with a massive buyback, yet its stock tanked while Ford quietly holds a yield nearly five times higher. For retirement savers choosing between these two Detroit giants, the better dividend stock is not…
Between Ford Motor Company (NYSE:F | F Price Prediction) and General Motors (NYSE:GM), which dividend is better for retirement savers? GM reported third-quarter adjusted EPS of $3.70 today, beating the $3.63 estimate, and announced a $20B buyback. Even so, the stock fell 7.84% in the session after management signaled rising cost pressures. Ford trades at $12.10 and is down 4.62% year to date.
Yield and Income: Ford Puts Far More Cash in Your Pocket Ford pays $0.15 per share each quarter, or $0.60 a year. At the current price, that’s a yield of about 4.96%. That regular amount is the reliable base for income planning. The larger payments of $0.33 in February 2024 and $0.30 in February 2025 were one-time extras, and the February 2026 payment came in at the regular quarterly rate.
GM raised its quarterly dividend to $0.18 from $0.15, bringing the annual total to $0.72. On a $76.27 share price, that yields roughly 0.94%. Winner: Ford.
Dividend Safety: GM’s Payout Is Nearly Untouchable Ford’s dividend costs about $2.35 billion a year. The company expects $6 billion to $7 billion of adjusted free cash flow in 2026, so even the low end covers the payout about 2.6 times. Ford also holds $22.3 billion in cash. The weak spots sit on the balance sheet. Debt-to-equity stands at 4.66 and interest coverage at just 2.02. Ford posted a second-quarter GAAP net loss of $1.33B after $4.2B in special charges, and it expects Model e losses of about $4 billion this year.
GM’s dividend costs only about $632 million a year. Its raised adjusted automotive free cash flow guidance of $11.5–$12.5B covers that roughly 18 times at the low end. GM is profitable on a GAAP basis, with debt-to-equity of 2.13 and interest coverage of 4.00. Winner: GM.
Long-Term Track Record: GM Has Compounded While Ford Stalled Over five years, GM’s adjusted share price rose 37.96% while Ford’s slipped 2.29%. Over ten years, the gap widened: GM gained 187.08% while Ford gained 62.16%. Ford is also the bumpier ride, with a beta of 1.939 compared with GM’s 1.4. GM’s chief executive said the company has “reduced our fully diluted shares by 37%” since 2023. As the share count shrinks, each remaining share claims a bigger piece of earnings and dividends. Winner: GM.
Verdict: Ford Wins for Income Now, GM Wins for Retirement Builders For income investors who need cash today, Ford offers the better dividend. At a yield near 4.96%, covered more than twice over by free cash flow guidance, it pays real bills in a way GM’s sub-1% yield cannot. Ford also raised its 2026 adjusted EBIT guidance to $10.0–$11.0B, and management said, “We remain committed to our investment grade rating in returning capital to shareholders.” Ford’s leverage is the risk to watch. Its next earnings report will show whether free cash flow stays on track as EV losses narrow.
GM wins for retirement savers who are still years away from drawing income. A 20% dividend raise, heavy buybacks, and a stronger balance sheet make it the better compounder. GM also warned of a bumpy 2027, and today’s selloff shows investors took that warning seriously. On dividend income alone, Ford holds the edge.
Contact [email protected] for any questions or corrections.
Key Takeaways GM shares fell 6.84% despite a 32.2% y/y earnings jump, higher revenues and a new $20B buyback program.Rising input costs, tariffs, EV restructuring and truck-launch disruptions threaten GM's near-term margins.GM's truck launches and growing digital revenues support long-term growth, but margin risks warrant caution.
US legacy automaker General Motors (GM - Free Report) delivered strong third-quarter 2026 results yesterday. Its earnings per share grew 32.2% year over year to $3.70 and topped the Zacks Consensus Estimate of $3.55. Revenues of $50.02 billion increased 3% year over year and outpaced the consensus mark of $48.21 billion.
On a further encouraging note, the company raised its adjusted automotive free cash flow forecast to $11.5-$12.5 billion from $9.5-$11.5 billion, and authorized a $20-billion multi-year share repurchase program.
Despite all that, shares of General Motors declined 6.84% yesterday following the results. The reaction puts the spotlight on other major US automakers, with Tesla (TSLA - Free Report) set to report its third-quarter results tonight and Ford (F - Free Report) following on Oct. 28. So, what is behind GM’s dip and does the pullback represent a buying opportunity now? Let us dig deeper.
Challenges in General Motors’ PathDespite the strong quarter, several headwinds help explain why investors reacted cautiously. The most immediate is cost pressure. Higher prices for copper, steel, fuel and DRAM memory, partly driven by geopolitical tensions in the Middle East, are weighing on margins. GM expects commodity inflation, logistics and DRAM expenses to create a $2-billion headwind in 2026, with $1.3 billion already incurred through the third quarter, including $700 million in the quarter itself. If these pressures persist, management sees an additional $1-$1.5 billion EBIT-adjusted headwind in 2027.
Tariffs and transition spending add to the burden. Gross tariff costs are expected near the low end of $2.5-$3.5 billion range this year, while GM anticipates $1-$1.5 billion of 2026 expenses tied to onshoring production, supply-chain improvements and software investments.
Operational disruptions are other concerns. New full-size pickup launches are expected to reduce fourth-quarter 2026 output by about 35,000 units. With transitions underway across three assembly plants and three engine plants, more downtime is expected in 2027, leaving full-size pickup production broadly flat year over year.
The electric vehicle business also remains a drag. EV sales have declined as GM trimmed production following the expiration of federal purchase incentives. Although lower capacity should narrow operating losses, the restructuring has been costly, with $11.2 billion in EV-related charges recorded since the second half of 2025, including $7.4 billion in cash costs. Roughly $1 billion in additional payments is expected in the fourth quarter, with the rest due in 2027.
Image Source: General Motors
Long-Term Story Remains IntactBeyond the near-term noise, GM’s long-term growth drivers remain firmly in place. The launch of next-generation Chevrolet Silverado and GMC Sierra trucks, featuring improved engines, advanced technology and premium trims, should support stronger pricing and a richer sales mix. Although production is expected to stay broadly flat in 2027, additional capacity in 2028 could help GM gain market share and lift profitability.
The company’s software and subscription business offers a promising way to diversify revenues beyond vehicle sales. OnStar’s deferred revenues reached $6.8 billion in the third quarter, up roughly 40% year over year, while recognized revenues topped $800 million. GM expects realized digital revenues to surpass $3 billion in 2026, driven by OnStar subscriptions and Super Cruise adoption, and anticipates Super Cruise penetration in full-size pickups to rise fourfold to fivefold in 2027. Growing recurring revenues should improve visibility and support profitability over time.
China also continues to contribute despite intense competition. Restructuring efforts delivered $32 million in equity income in the third quarter, marking the eighth consecutive profitable quarter, and management expects another profitable quarter ahead.
Shareholder returns provide further support. GM repurchased $5.3 billion in shares through the third quarter and another $1 billion in October, fully using its prior authorization, and the board has approved a multi-year $20-billion buyback program.
Image Source: General Motors
Finally, GM is expanding beyond traditional manufacturing. GM Energy is building charging and energy storage offerings, while GM Defense has secured additional multi-year contracts and expects annual revenue growth above 30% with double-digit margins.
Our TakeGM’s quarter was strong, but the stock’s sharp drop reflects a market looking past the beat to the cost and execution risks ahead. Rising input costs, tariffs, truck-launch disruptions and a drawn-out EV reset are likely to dent profits, while flat 2027 pickup output limits near-term volume upside.
The buyback and long-term growth drivers are meaningful, but they play out over time rather than justify rushing in. With cost pressures still to be worked through, the risk-reward looks balanced for now. While existing investors can stay put, new investors should wait for clearer margin visibility.
GM currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
General Motors Co. (NYSE:GM) on Tuesday posted upbeat third-quarter earnings and narrowed 2026 adjusted profit outlook.
General Motors reported third-quarter revenue of $50.015 billion, up 2.9% year over year and above analysts’ estimate of $48.697 billion. Adjusted earnings rose 32.2% to $3.70 per share, beating the $3.63 consensus estimate.
General Motors narrowed its full-year adjusted EBIT forecast to $14.5 billion to $15.5 billion from its previous range of $14 billion to $16 billion.
It also narrowed its GAAP earnings forecast to $9.72 to $10.72 per share from $8.98 to $10.98, compared with the analyst estimate of $10.27. The company narrowed its full-year 2026 adjusted earnings guidance to $12.75 to $13.75 per share from $12 to $14 per share, compared with analysts’ estimate of $13.41 per share.
General Motors shares fell 1.1% to trade at $76.28 on Wednesday.
These analysts made changes to their price targets on General Motors following earnings announcement.
Morgan Stanley analyst Andrew Percoco maintained the stock with an Overweight rating and lowered the price target from $101 to $95. RBC Capital analyst Tom Narayan maintained the stock with an Outperform rating and cut the price target from $102 to $98. Barclays analyst Dan Levy maintained the stock with an Overweight rating and lowered the price target from $110 to $105. Photo via Shutterstock
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TrueCar founder Scott Painter recaps General Motors (GM) earnings and how affordability is hitting the company's bottom line despite guiding for a strong 2027. He takes investors through his firm's data on the automobile industry which tells him the car market has a bumpy road ahead.
On October 20, 2026, General Motors Co GM shares fell by 6.8% to a current price of $77.09, trading within a 52-week range of $57.68 to $91.85. The recent price shift is indicative of broader market sentiments and company-specific developments.
GF Value™ verdict: GM is currently priced at $77.09, which is 14.5% above the GF Value™ of $67.31, indicating it is overvalued. GF Score™ is 79/100, reflecting an above-average performance compared to its peers. Most notable signal: Insiders sold $167.6 million in stock over the past 12 months, with no insider buying activity reported.Is GM Overvalued or Undervalued?The current price of General Motors Co GM at $77.09 is significantly above its GF Value™ estimate of $67.31, suggesting that the stock is currently overvalued by approximately 14.5%. GF Value™ represents GuruFocus's intrinsic value calculation based on historical trading multiples, past business growth, and future performance projections. The GF Valuation label categorizes GM as "Modestly Overvalued," which poses a risk for potential investors as market corrections could lead to declines in the stock price.
Being overvalued implies that investors are paying a premium compared to the estimated fair value, which raises concerns about the margin of safety. A significant gap between the market price and intrinsic value often indicates that investors should exercise caution, as the risk of a price adjustment is heightened. Without a favorable margin of safety, the potential for downside risk may outweigh the prospects for upside gains.
How Does GM's Valuation Compare to Its History?Metric Current Historical P/E (TTM) 38.9x 6.6x Forward P/E 5.1x -Currently, GM's P/E (TTM) stands at 38.9x, which is an astonishing 487% above its 5-year median P/E of 6.6x. This stark contrast signals that GM is trading at a premium relative to its historical valuation metrics. The forward P/E of 5.1x appears more attractive; however, it also suggests that the market expects substantial growth to justify such a valuation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the perspective that GM is overvalued at its current price level.
What Does GM's GF Score™ Tell Us?The GF Score™ provides a comprehensive assessment of a company's overall financial health, taking into consideration factors such as financial strength, profitability, growth, valuation, and momentum. GM's GF Score™ of 79/100 indicates a solid performance, with particular strengths in its momentum rank, which is at the top tier of 10/10, suggesting strong price performance trends. However, its financial strength is relatively weak at 5/10, indicating potential vulnerabilities in its balance sheet.
Metric Rating GF Score™ 79/100 Financial Strength 5/10 Profitability 7/10 Growth 6/10 Valuation 5/10 Momentum 10/10The combination of a strong momentum score alongside average profitability and valuation metrics suggests that while GM may experience short-term gains, underlying financial strength may not support sustained performance. The modest financial strength score raises concerns about the company's ability to weather economic downturns and maintain long-term growth.
What Are Gurus and Insiders Doing with GM?Currently, 17 gurus hold positions in General Motors Co, with 5 adding to their stakes and 10 trimming their positions in recent quarters. This indicates a mixed sentiment among institutional investors, reflecting both optimism and caution regarding GM's future performance. The dynamic of insider activity is particularly notable, as insiders have sold $167.6 million worth of stock over the past 12 months without any reported purchases. This selling behavior may suggest that insiders are not confident in the stock's near-term prospects, which could serve as a bearish signal for prospective investors.
The lack of insider buying paired with a significant amount of insider selling is often viewed as a negative indicator and raises questions about the company's future direction. Such patterns may influence market perceptions and could lead to increased volatility in GM's stock price.
What This Means for InvestorsIn summary, General Motors Co GM appears to be overvalued at its current price of $77.09 compared to the GF Value™ estimate of $67.31, with a 14.5% premium raising concerns about potential downside risk. Coupled with mixed signals from both guru holdings and insider activity, it is crucial for investors to consider these factors carefully. For a deeper dive into GM's financials and performance metrics, visit the General Motors Co (GM) stock page.
Frequently Asked QuestionsWhat is GM's GF Score™?
GM's GF Score™ is 79/100, reflecting an above-average performance compared to its peers in the market.
Is GM overvalued or undervalued?
GM is currently overvalued, with a GF Value™ estimate of $67.31 compared to its market price of $77.09.
What is GM's P/E ratio?
GM's P/E (TTM) is 38.9x, which is significantly higher than its 5-year median P/E of 6.6x, indicating that the stock is trading at a premium relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
General Motors Co. shares fell as shareholders focused on a narrower profit outlook despite plans for another $20 billion in stock repurchases. The company now sees 2026 adjusted earnings before interest and taxes in a range of $14.5 billion to $15.5 billion, compared with the $14 billion to $16 billion range it projected in July.
On its third quarter of 2026 earnings call, held on Oct. 20, 2026, General Motors (GM -6.84%) raised its full-year guidance for adjusted automotive free cash flow to a range of $11.5 billion to $12.5 billion. The previous midpoint was $10.5 billion. That cash generation gives the automaker room to return capital to shareholders while funding new truck launches and software expansion. Three things management said stand out.
Management launched a $20 billion multiyear share repurchase authorization, representing nearly 30% of its market capitalization. The move builds on prior buybacks that reduced fully diluted shares by 37% since 2023.
The size and duration of this authorization are a meaningful statement of the board's confidence that our cash generation is sufficient to continue investing in the future of the company and returning capital to shareholders.
-- Paul Jacobson, Executive Vice President and Chief Financial Officer2. Full-Size Truck Leadership Provides a Foundation for GrowthThe company is launching its next-generation Chevrolet Silverado and GMC Sierra light-duty pickups while maintaining low incentives and disciplined inventory. Market share in full-size pickups expanded by 10 percentage points over the current model cycle.
We have now achieved 19 consecutive quarters of sales leadership in the U.S. and grown our market share by 10 full points since the current generation went on sale in 2018.
-- Mary Barra, Chair and Chief Executive Officer3. Digital Revenue and Driver Assistance Drive High-Margin ExpansionDeferred revenue from software, which is cash collected before services are delivered, reached nearly $7.5 billion for the year. That growth comes from OnStar, the in-vehicle safety and connectivity service, and Super Cruise, the hands-free driver assistance technology that management plans to standardize on premium truck trims.
Year-over-year, deferred revenue from software and services is up 40%. For the full year, we are on pace to approach $7.5 billion in deferred revenue, driven by one million new OnStar subscriptions and a one million-strong Super Cruise-equipped car park.
-- Mary Barra, Chair and Chief Executive OfficerLooking AheadAutomotive cash flow is set to rise as restructuring charges for electric vehicles decline.
Remember, our GAAP cash flow, so our actual sort of cash available for investment should be significantly higher as we lap the bulk of the cash restructuring work that we did on the EV side.
-- Paul Jacobson, Executive Vice President and Chief Financial OfficerCommodity inflation in steel and copper poses a near-term challenge, but pricing discipline and expansion of digital software offer clear advantages.
The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
Michigan Republican Senate candidate Mike Rogers and the United Auto Workers union found rare common ground on Tuesday, separately accusing General Motors (GM.N) of putting shareholders ahead of workers after the automaker unveiled a new $20 billion stock buyback plan.
Rogers, a former US House member, accused GM of wrongly investing in electric vehicles.
"GM lost billions investing in EVs nobody wanted. For two years, GM could have focused on reinvesting in Michigan workers and manufacturing vehicles consumers actually want to buy. Instead, they chose to put profits over people, and Michigan autoworkers will pay the price," Rogers said in a statement.
Rogers is competing against Democrat Abdul El-Sayed in a closely watched Senate race and hopes to flip the seat to Republican control. Republicans have increasingly courted autoworkers and other blue-collar voters in Michigan, whose economy remains closely tied to the auto industry.
Polls through mid-October generally show El-Sayed ahead in the November 3 election by a few points, though several surveys have fallen within the margin of error.
The United Auto Workers, which has endorsed El-Sayed, also condemned the buyback, calling it "outrageous" when 80% of GM autoworkers do not have pensions or retiree healthcare benefits and saying the automaker was "choosing Wall Street profits over blue-collar America."
Rogers did not elaborate on how GM's electric vehicle investments contributed to the buyback decision. The company has bought back about $29.5 billion in stock since 2023, and CEO Mary Barra said GM viewed its shares as undervalued.
Asked to comment on the criticism, GM said its "first priority is investing in our business and our employees. Since 2020, we’ve reinvested more than $100 billion to fund our growth, including in our products, our factories, and our people."
The criticism was unusual for Rogers, who has generally focused on denouncing government policies promoting electric vehicles rather than on automakers themselves.
El-Sayed did not immediately respond to a request for comment.
UAW President Shawn Fain said stock buybacks "are a form of legalized mass looting, sending billions of dollars generated by the working class directly to Wall Street investors who've never seen the inside of a factory."
GM has scaled back electric vehicle production and investment plans amid softer EV demand and policy changes under President Donald Trump. The automaker has recorded $11.2 billion in EV-related charges since last year.
Rogers has frequently criticized policies aimed at accelerating electric vehicle adoption and appeared with Trump at a campaign-style event at a GM facility in Michigan in July. The candidate and president argued such policies threaten US manufacturing jobs.
As General Motors Co (NYSE:GM) expands Super Cruise across its Chevrolet Silverado and GMC Sierra lineup, a bigger shift is taking shape: software and services are becoming a more meaningful part of the automaker's revenue mix.
Image Credits:JEFF KOWALSKY/AFP / Getty Images GM is closing a battery assembly plant south of Detroit, a spokesperson confirmed to TechCrunch.
The Brownstown Battery Assembly Plant assembled battery packs for Cadillac’s flagship EV, the Celestiq, and both electric drive units (the motors that power the car) and battery packs for the Chevrolet Corvette E-Ray, a plug-in hybrid version of its famous sports car. Automotive News first reported the closure.
The closure is not related to GM’s electric vehicle strategy, the spokesperson said. Instead, GM leased the site, and the lease was nearing its end.
The employees and work at Brownstown will be moved to other GM facilities, though the company would not confirm which ones.
Like many automakers, GM’s electrification strategy was thrown a curveball after the One Big Beautiful Bill Act, the sweeping federal law signed last year, repealed incentives to produce and sell EVs.
Since then, the company has pared back its public comments on EVs, though it hasn’t given up on full electrification.
GM continues to produce a range of EVs, including the Chevrolet Silverado EV and the limited-time-only Chevrolet Bolt. It also continues researching new battery chemistries, including lithium-manganese-rich and sodium-ion, and it’s rolling out a new $900 million facility to speed commercialization.
General Motors Company (GM) Q3 2026 Earnings Call October 20, 2026 8:30 AM EDT
Company Participants
Ashish Kohli - Vice President of Investor Relations
Mary Barra - Chairman & CEO
Paul Jacobson - Executive VP & CFO
Susan Sheffield - President & Chief Executive Officer
Conference Call Participants
Mark Delaney - Goldman Sachs Group, Inc., Research Division
Itay Michaeli - TD Cowen, Research Division
Dan Levy - Barclays Bank PLC, Research Division
Joseph Spak - UBS Investment Bank, Research Division
James Picariello - BNP Paribas, Research Division
Andrew Percoco - Morgan Stanley, Research Division
Emmanuel Rosner - Wolfe Research, LLC
Michael Ward - Citigroup Inc., Research Division
Alexander Perry - BofA Securities, Research Division
Gautam Narayan - RBC Capital Markets, Research Division
Presentation
Operator
Good morning, and welcome to the General Motors Company Third Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded Tuesday, October 20, 2026. I would now like to turn the conference over to Ashish Kohli, GM's Vice President of Investor Relations.
Ashish Kohli
Vice President of Investor Relations
Thanks, Amanda, and good morning, everyone. We appreciate you joining us as we review GM's financial results for the third quarter of 2026. Our conference call materials were issued this morning and are available on GM's Investor Relations website. We are also broadcasting this call via webcast. Joining us today are Mary Barra, GM's Chair and CEO, along with Paul Jacobson, GM's Executive Vice President and CFO. Susan Sheffield, President and CEO of GM Financial, will also be joining us for the Q&A portion.
On today's call, management will make forward-looking statements about our expectations. These statements are subject to risks and uncertainties that could cause our actual results to differ materially. These risks and uncertainties include the factors identified in our filings with the SEC. Please review the safe harbor statement on the first
General Motors GM shares are experiencing a decline following the release of its Q3 results. The automaker surpassed earnings per share (EPS) expectations by a small margin, with revenue rising 2.9% year-over-year to $50 billion, exceeding forecasts. However, investor sentiment appears to be influenced by the company's guidance.
GM has narrowed its fiscal year 2026 adjusted EBIT guidance to a range of $14.5 billion to $15.5 billion, down from the previous $14.0 billion to $16.0 billion, keeping the midpoint unchanged despite strong year-to-date performance. The company raised its adjusted EPS guidance to $13.25 and increased its adjusted automotive free cash flow guidance to $11.5 billion to $12.5 billion. North America showed strong results, delivering adjusted EBIT of $3.6 billion, a 43% increase year-over-year, with margins improving by 250 basis points to 8.7%. This strength was driven by higher internal combustion engine (ICE) volumes and an improved sales mix, including a 9% increase in U.S. light-duty full-size pickup sales and a 10% rise in fleet sales. Profitability was supported by lower warranty expenses and reduced losses from electric vehicles (EVs), with a $600 million year-over-year improvement in Q3. However, these gains were partially offset by rising commodity and logistics costs, onshoring expenses, and pricing pressures due to increased incentives during the current generation truck sell-down. Overall adjusted EBIT rose 22% year-over-year to $4.1 billion, with margins expanding by 130 basis points to 8.2%. Despite this, the guidance suggests approximately $2.7 billion in Q4 adjusted EBIT at the midpoint, amid rising inflation and about 35,000 fewer full-size pickups year-over-year due to the model changeover. Looking ahead, GM faces external challenges, particularly as commodity and logistics costs continue to rise. Although the outlook for 2027 appears stronger than 2026, management cautioned that sustained inflation could lead to an EBIT headwind of $1.0 billion to $1.5 billion in 2027.In summary, GM's Q3 results reflect strong operational performance, particularly in North America, alongside continued margin expansion and robust cash generation. The company has also raised its fiscal year 2026 adjusted automotive free cash flow outlook and announced a new $20 billion share repurchase authorization, demonstrating confidence in its cash generation capabilities. However, the market's negative reaction seems tied to the anticipated sequential decline in Q4 adjusted EBIT and the unchanged fiscal year 2026 EBIT midpoint despite strong year-to-date results. While internal factors remain favorable, including reduced EV losses and improved warranty expenses, rising commodity costs and logistics expenses are complicating the earnings landscape.
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General Motors (GM) posting a strong earnings beat and confidence in 2027 guidance, topped with a $20 billion share buyback plan, wasn't enough to accelerate the bullish momentum in shares. Marley Kayden explains why she believes investors are taking their foot off the gas.
United Airlines (UAL) CEO Scott Kirby advocates for a national wealth tax and nearly 100% inheritance tax, citing wealth inequality risks. General Motors (GM) faces share pressure as FY26 profit guidance and rising input costs outweigh a Q3 earnings beat and $20B buyback.
Key Takeaways GM's Q3 adjusted EPS rose to $3.70, beating estimates, while revenues climbed to $50.02B.GM's North America's adjusted EBIT surged 43.4%, driven by lower warranty costs and improved vehicle mix.GM raised its 2026 FCF outlook to $11.5-$12.5B and authorized a $20B share buyback program.
General Motors (GM - Free Report) reported third-quarter 2026 adjusted earnings of $3.7 per share, up 32.2% year over year. The figure surpassed the Zacks Consensus Estimate of $3.55. Higher wholesale volumes, favorable vehicle mix and cost efficiencies supported the outperformance.
Revenues increased 2.9% to $50.02 billion and beat the consensus estimate of $48.21 billion. Global wholesale volume rose to 1.03 million vehicles from 976,000 a year earlier. Adjusted earnings before interest and taxes (EBIT) increased 21.6% to $4.11 billion, while adjusted EBIT margin expanded 130 basis points to 8.2%.
General Motors Company Price, Consensus and EPS SurpriseGM's North America Business Gains MomentumGM North America generated revenues of $41.42 billion, up 2.1% from the prior-year quarter. Wholesale volume increased to 870,000 vehicles from 840,000, supported by higher internal combustion engine (ICE) shipments. ICE volume increased by 53,000 units, partly offset by a 23,000-unit decline in electric vehicle volume.
The segment's adjusted EBIT surged 43.4% to $3.59 billion. Adjusted EBIT margin expanded 250 basis points to 8.7%. Lower warranty costs, favorable EV inventory adjustments and improved vehicle mix supported profitability. Higher commodity, logistics and manufacturing costs partly offset these benefits.
U.S. dealer inventory ended the quarter at 568,000 vehicles compared with 527,000 a year earlier. The company maintained pricing discipline, with incentives averaging 4.8% of manufacturer's suggested retail price, below the industry average of 6.6%.
General Motors' International Operations Face PressureGM International revenues increased 12.1% year over year to $4.09 billion. Wholesale volume climbed to 159,000 vehicles from 137,000, supported by higher shipments in South America.
However, adjusted EBIT declined 87.6% to $28 million. Higher manufacturing and logistics expenses, alongside a negative mark-to-market adjustment related to GM's investment in Momenta, weighed on profitability. Higher volumes and favorable foreign exchange movements provided partial relief.
GM's China joint ventures generated equity income of $32 million, down 60% year over year. Nevertheless, the China business delivered its eighth consecutive profitable quarter, supported by restructuring efforts and strong new-energy vehicle sales.
GM Financial Encounters Higher Credit CostsGM Financial revenues declined marginally to $4.31 billion from $4.34 billion in the year-ago quarter. Ending earning assets increased to $126.9 billion from $126.5 billion.
Adjusted earnings before taxes declined 16.9% to $668 million. Lower interest expenses and higher retail yields were offset by increased provisions for loan losses and higher lease depreciation expenses. The financing arm paid a $250 million dividend to GM during the quarter, bringing year-to-date dividends to $1.2 billion.
General Motors' Digital Business Continues to ExpandOnStar ended the quarter with deferred revenues of $6.8 billion, up approximately 40% year over year. Recognized revenues exceeded $800 million, increasing 15%. The company remained on track to add approximately 1 million subscribers in 2026, approaching 13 million by year-end.
Super Cruise recognized revenues increased approximately 60%. GM delivered around 83,000 Super Cruise-equipped vehicles during the quarter, bringing year-to-date sales above 243,000 units. Management expects to exceed 850,000 subscribers by year-end, with the post-three-year prepaid subscription attach rate remaining between 30% and 40%.
GM's Cash Flow Strengthens Shareholder ReturnsAutomotive operating cash flow increased 32.6% to $8.05 billion. Adjusted automotive free cash flow jumped 40% to $5.88 billion, driven by higher automotive earnings and tariff-related timing benefits.
Capital expenditures totaled $2.33 billion for automotive operations. GM repurchased $2.5 billion of shares, retiring approximately 29 million shares, and distributed $200 million in dividends. Automotive cash and marketable securities totaled $23.1 billion, while total automotive liquidity reached $37.1 billion. The board also authorized a new $20 billion multi-year share repurchase program.
General Motors Updates 2026 OutlookGeneral Motors narrowed its full-year adjusted EBIT guidance to $14.5-$15.5 billion from $14-$16 billion. Adjusted earnings are now projected at $12.75-$13.75 per share, compared with the previous range of $12-$14.
The company raised its adjusted automotive free cash flow forecast to $11.5-$12.5 billion from $9.5-$11.5 billion. It maintained expectations for an 8-10% adjusted EBIT margin in North America and capital spending, including battery joint-venture investments, of $10-$12 billion.
Management expects warranty savings toward the upper end of $1-$1.5 billion, while commodity inflation, including logistics and memory-chip costs, is projected at approximately $2 billion. Gross tariff costs are expected near the lower end of the $2.5-$3.5 billion range. The board declared a quarterly dividend of 18 cents per share, payable Dec. 17, 2026, to shareholders of record as of Dec. 4.
General Motors’ Zacks Rank & Key PicksGM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Auto-Tires-Trucks space are Rivian Automotive, Inc. (RIVN - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and Lucid Group, Inc. (LCID - Free Report) .
RIVN is expected to report third-quarter fiscal 2026 results on Oct. 29. The Zacks Consensus Estimate for loss is pegged at 67 cents per share. RIVN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
FOXF is expected to report third-quarter fiscal 2026 results on Nov. 5. The Zacks Consensus Estimate for loss is pegged at 48 cents per share. FOXF currently carries a Zacks Rank #1.
LCID is expected to report third-quarter 2026 results on Nov. 9. The Zacks Consensus Estimate for loss is pegged at $2.78 per share. LCID currently carries a Zacks Rank #2.
General Motors Co. (NYSE:GM) gave investors almost everything they wanted on Tuesday: an earnings beat, revenue beat, increased cash flow guidance and a board-approved $20 billion share buyback.
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 Company (NYSE:GM) reported a 22% rise in adjusted operating earnings to $4.1 billion in the third quarter and raised its full-year adjusted automotive free cash flow guidance.
The company now expects adjusted automotive free cash flow of $11.5 billion to $12.5 billion in 2026, up from its previous forecast of $9.5 billion to $11.5 billion.
General Motors also narrowed its full-year adjusted earnings before interest and taxes (EBIT) guidance from $14.5 billion to $15.5 billion, compared with its earlier range of $14 billion to $16 billion.
The updated outlook follows quarterly revenue growth of 3% to $50 billion for the three months to September, while net income attributable to shareholders more than doubled to $3.3 billion from $1.3 billion a year earlier.
Adjusted earnings per share rose 32% to $3.70 from $2.80, while adjusted EBIT margin, which measures adjusted operating earnings as a proportion of revenue, increased to 8.2% from 6.9%.
General Motors also raised its full-year adjusted diluted earnings per share guidance to $12.75 to $13.75, from $12 to $14 previously.
The company expects full-year net income attributable to shareholders of $8.9 billion to $9.5 billion and automotive operating cash flow of $17.3 billion to $20.3 billion.
Alongside its results, the board approved a new $20 billion multi-year share repurchase authorization with no expiry date, following the completion of its previous $6 billion programme, which was announced in January.
The authorization gives General Motors the flexibility to buy back shares over time, although the company can suspend or discontinue the program at its discretion.
General Motors had 849 million shares outstanding at the end of September, down from 904 million at the end of 2025 and 995 million at the end of 2024.
The board also declared a quarterly cash dividend of $0.18 a share.
The results showed continued strength in North American operations, where adjusted EBIT increased 43% to $3.6 billion, while the international business recorded adjusted EBIT of $28 million, down from $226 million a year earlier.
General Motors Financial, the company's automotive financing business, reported adjusted earnings before tax of $668 million, a 17% decline from $804 million in the corresponding quarter last year.
Shares of GM lost about 5% at Tuesday's open on Wall Street.
For the quarter ended September 2026, General Motors (GM - Free Report) reported revenue of $50.02 billion, up 2.9% over the same period last year. EPS came in at $3.70, compared to $2.80 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $48.21 billion, representing a surprise of +3.75%. The company delivered an EPS surprise of +4.23%, with the consensus EPS estimate being $3.55.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how General Motors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Worldwide - Wholesale Vehicle Sales - Total GMI: 159 thousand versus 138.12 thousand estimated by five analysts on average.Worldwide - Wholesale Vehicle Sales - Total: 1.03 million versus the five-analyst average estimate of 971.75 thousand.Worldwide - Wholesale Vehicle Sales - Total GMNA: 870 thousand versus 833.64 thousand estimated by five analysts on average.Total net sales and revenue- GM Financial: $4.31 billion compared to the $4.4 billion average estimate based on five analysts. The reported number represents a change of -0.6% year over year.Total net sales and revenue- Total Automotive- GMNA: $41.42 billion versus the five-analyst average estimate of $40.22 billion. The reported number represents a year-over-year change of +2.1%.Total net sales and revenue- Total Automotive- GMI: $4.09 billion versus $3.68 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +12.1% change.Total net sales and revenue- Total Automotive: $45.71 billion compared to the $43.84 billion average estimate based on four analysts. The reported number represents a change of +3.3% year over year.Total net sales and revenue- Total Automotive- Corporate: $201 million compared to the $84.94 million average estimate based on four analysts. The reported number represents a change of +235% year over year.Total net sales and revenue- Reclassifications/Eliminations: $-3 million versus $-9.5 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +50% change.Operating segments- GMNA: $3.59 billion versus the four-analyst average estimate of $3.32 billion.Operating segments- Corporate and eliminations: $-183 million compared to the $-328.04 million average estimate based on four analysts.Operating segments- GM Financial: $668 million versus $775.41 million estimated by four analysts on average.View all Key Company Metrics for General Motors here>>>
Shares of General Motors have returned -1.4% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Adults Are Fueling a Toy Boom—These 4 Stocks Could Cash InGeneral Motors NYSE: GM reported record third-quarter revenue and higher adjusted earnings, while raising its outlook for adjusted automotive free cash flow and authorizing a new $20 billion multiyear share-repurchase program.
Chair and CEO Mary Barra said the company generated $12.3 billion in adjusted EBIT, $12.2 billion in adjusted automotive free cash flow and $10.97 in adjusted diluted earnings per share through the first nine months of 2026. Adjusted diluted EPS was up more than 35% from a year earlier, she said.
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GlobalFoundries' $21 Billion Deal Could Change the Economics of ChipmakingFor the third quarter, GM reported revenue of $50 billion, up 3% year over year, according to Executive Vice President and CFO Paul Jacobson. Adjusted EBIT rose 22% to $4.1 billion, while adjusted diluted EPS increased more than 30% to $3.70. Adjusted automotive free cash flow totaled $5.9 billion, an increase of $1.7 billion from the prior-year period.
North America performance and revised outlook
GM's North American business posted adjusted EBIT of $3.6 billion, up 43% year over year, with an 8.7% margin. Jacobson said the margin improvement reflected a richer mix of full-size pickups, reduced EV losses following capacity adjustments and lower warranty expense. Those benefits were partly offset by commodity inflation, logistics costs, higher DRAM costs and costs associated with moving production to the United States.
These 3 Stocks Are Drawing Insider Buyers for Very Different ReasonsThe company said it has now worked through much of the tariff pressure it faced and is back within its targeted North American margin range of 8% to 10%.
GM narrowed its full-year 2026 adjusted EBIT outlook to a range of $14.5 billion to $15.5 billion, compared with its prior range of $14 billion to $16 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 EPS guidance was narrowed to $12.75 to $13.75, from $12 to $14.
Capital expenditures are expected to land in the lower half of GM's prior $10 billion to $12 billion range. Jacobson said the improved cash-flow outlook reflected operational performance, lower projected capital spending and tariff timing.
GM expects U.S. industry sales to remain in the mid-16 million-unit range for the full year. The company said fourth-quarter internal-combustion-engine volumes will be lower than usual because of the launch of its next-generation full-size pickups, with an expected year-over-year headwind of roughly 35,000 pickups.
Pickup launch and digital revenue plans
GM's U.S. sales totaled more than 670,000 vehicles in the quarter. ICE sales of 645,000 vehicles increased slightly despite discontinued models, and light-duty full-size pickup sales rose 9% year over year. GM said it remains on pace to lead the U.S. full-size pickup market for a seventh consecutive year.
The company has begun production of its new Chevrolet Silverado and GMC Sierra light-duty pickups at Silao Assembly. Vehicles are expected to arrive in dealerships late in the fourth quarter. Fort Wayne is scheduled to begin production in January after four planned down weeks, while Orion is expected to begin production in the second quarter.
Barra said GM expects to build approximately the same number of trucks in 2027 as in 2026 because of launch-related downtime across three assembly plants and three engine plants. The company expects incremental capacity in 2028, including capacity from Orion, to support market-share growth.
GM also expects the redesigned trucks to support adoption of Super Cruise and digital services. Barra said Super Cruise will be standard on high-end Silverado and Sierra trims and available on most other versions. The company expects full-size truck Super Cruise penetration to grow four to five times in 2027.
OnStar Digital and Super Cruise generated more than $800 million of recognized revenue during the quarter, up 15% year over year. GM expects more than $3 billion in realized software and services revenue during 2026 and nearly $7.5 billion in deferred revenue by year-end. The company said deferred revenue was up 40% year over year, supported by one million new OnStar subscriptions and a Super Cruise-equipped vehicle population of about one million.
Inflation, EV costs and 2027 considerations
Management said its outlook for 2027 depends in part on commodity, logistics and memory costs moderating. Copper prices have reached record levels, while hot-rolled coil steel prices are at four-year highs, Jacobson said. Spot prices for both steel and copper were up 10% to 15% since July and about 50% above last year's average.
GM said the recent inflation is adding roughly $400 million in incremental costs during 2026, with most of the impact expected in the fourth quarter. The company now expects commodity inflation, logistics and DRAM costs to create a full-year headwind of about $2 billion. If recent commodity inflation were annualized, it could represent an additional $1 billion to $1.5 billion adjusted EBIT headwind in 2027, Jacobson said.
Barra said GM expects support from continued warranty improvements, better EV profitability, software and services growth, truck mix and pricing opportunities, and fixed-cost management. She said the company is increasing its use of artificial intelligence across functions to improve operating efficiency, though management did not quantify expected savings.
GM expects EV losses to decline by $1 billion to $1.5 billion for the full year as it aligns capacity and production with demand. It incurred an additional $200 million in EV-related cash charges during the third quarter, bringing total charges since the end of the first half of 2025 to $7.4 billion. Of that amount, $4.6 billion has been paid, with roughly $1 billion more expected in the fourth quarter and the remaining payments expected in 2027.
Share repurchases and international operations
GM repurchased $2.5 billion of stock in the third quarter and another $1 billion in October, bringing year-to-date buybacks to $6.3 billion and completing its prior authorization. The repurchases reduced diluted shares by about 27 million during the quarter to roughly 866 million, or 9% below the third-quarter 2025 level. Barra said fully diluted shares have declined 37% since GM began using surplus cash for repurchases in 2023.
The new $20 billion authorization represents more than 25% of the company's current market capitalization, Jacobson said. Management did not provide a timetable for repurchases, saying it would remain opportunistic while following its capital-allocation framework.
GM International, excluding China equity income, was breakeven in the quarter, down $200 million year over year. The result included a $100 million negative mark-to-market adjustment related to Momenta, as well as higher manufacturing and logistics costs. China equity income was $32 million, marking GM's eighth consecutive profitable quarter in the market.
GM Financial reported adjusted earnings before tax of $700 million and paid a $250 million dividend to GM. The financing unit remains on track for full-year adjusted EBT of $2.5 billion to $3 billion, management said.
About General Motors (NYSE:GM)General Motors Company NYSE: GM is a global automotive company headquartered in Detroit, Michigan. Founded in 1908, GM designs, manufactures and sells vehicles and related services through brands including Chevrolet, Buick, GMC and Cadillac.
GM's product lineup includes passenger cars, pickup trucks, sport utility vehicles, commercial vehicles and electric vehicles. The company is also developing connected-vehicle technologies, driver-assistance systems and charging and energy-management solutions.
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FORT WORTH, Texas--(BUSINESS WIRE)--GENERAL MOTORS FINANCIAL COMPANY, INC. (“GM Financial” or the “Company”) announced net income of $487 million for the quarter ended September 30, 2026, compared to $589 million for the quarter ended September 30, 2025. Net income for the nine months ended September 30, 2026 was $1.4 billion, compared to $1.6 billion for the nine months ended September 30, 2025. Retail loan originations were $9.9 billion for the quarter ended September 30, 2026, compared to $1.
Vancouver, British Columbia--(Newsfile Corp. - October 20, 2026) - Bitzero Holdings Inc. (NASDAQ: AIBZ) (CSE: AIBZ.U) (FSE: 000) ("Bitzero" or the "Company") today announced that it has entered into a project development agreement with Skanska for its flagship Norway data center site. Skanska is one of the largest and most established construction companies in the region, with a deep track record delivering large-scale, technically demanding infrastructure projects. The agreement brings recognized, institutional-caliber construction capability into the Norway delivery framework, alongside Bitzero's previously announced partnership with Vertiv, and provides the Company with greater certainty in planning as it prepares for the next phase.
Skanska will work alongside Vertiv to support the build-out of a turnkey, built-to-spec data center at the Norway site. Together, the two partners are expected to support the full scope of project delivery, spanning engineering and design, procurement, construction, and systems integration. The combination supports the development of an investment-grade ecosystem for execution in Norway for Bitzero, with responsibilities spanning from design through to operational readiness. The engagement of Skanska and Vertiv reflects Bitzero's continued focus on assembling an institutional delivery ecosystem capable of delivering to the best-in-class standards expected by hyperscale, enterprise, and institutional tenants.
"With demand for Nordic capacity growing, we are positioning the Norway site for competitive and high-quality delivery," said Bitzero Founder & CEO, Mohammed Bakhashwain. "Bringing Skanska in as a partner alongside Vertiv gives us a genuinely investment-grade execution stack in Norway - from engineering and design through to systems integration. This is what building a platform looks like in practice: we are advancing site readiness, power infrastructure, and delivery capability so we can execute efficiently and to specification on this site and further assets in our portfolio."
"We are delighted to be partnering with Bitzero on the development of this facility and to become part of its long-term delivery ecosystem," said Pål Magnus Aglen, Executive Vice President, Skanska Norway. "This agreement reflects our strategy of offering data center developers a one-stop-shop approach, collaborating with customers from an early stage to develop and build their projects. Together with specialist partners such as Vertiv, we bring complementary capabilities across the value chain, tailored to the needs of the data center sector. Projects of this scale and technical complexity require disciplined planning, experienced execution, and clearly defined responsibilities. We look forward to working alongside Bitzero and Vertiv to develop a data center that meets the performance and reliability standards its customers will expect."
The agreement follows a series of operational milestones at the Norway site, including completion of initial civil works, with all long-lead power items expected to arrive shortly, as well as the strengthening of Bitzero's delivery ecosystem.
The Company intends to provide further updates as procurement, development and leasing activities progress across its Nordic sites in the near future.
About Bitzero Holdings Inc.
Bitzero Holdings Inc. is a provider of IT energy infrastructure and high-efficiency power for data centers. The Company focuses on data center development, high-performance compute (HPC), and strategic data center hosting partnerships. Bitzero Holdings Inc. has four data center locations in the North American and Nordic regions, with its Nordic assets powered by clean, low-carbon energy sources. Visit www.bitzero.com for more information.
Forward-looking statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws and "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are often, but not always, identified by words such as "anticipate", "plan", "expect", "intend", "may", "will", "would", "could", "should", "believe", "estimate", "project", "potential", "position", "target" or similar expressions suggesting future outcomes or events.
Forward-looking statements in this news release include, but are not limited to, statements regarding: the build-out and completion of a turnkey, built-to-spec data center at the Company's Norway site and the timing thereof; the expected roles and scope of work of Skanska and Vertiv, including the expectation that together they will cover engineering and design, procurement, construction and systems integration; the anticipated benefits of the engagement of Skanska, including greater certainty of delivery planning and the Company's ability to deliver to the standards expected by hyperscale, enterprise and institutional tenants; the commencement of the next phase of development at the Norway site; the expected arrival of long-lead power items; the advancement of the Norway site toward tenant readiness; demand for Nordic data center capacity; the Company's ability to execute efficiently and to specification at the Norway site and at other assets in its portfolio; Skanska's anticipated long-term participation in the Company's delivery ecosystem; and the Company's intention to provide further updates as procurement, development and leasing activities progress across its Nordic sites.
Forward-looking statements are based on management's current expectations and on assumptions that management believes are reasonable as of the date of this news release, including, but not limited to: that the Company's arrangements with Skanska and Vertiv will be maintained, and that each will perform its obligations, on the terms, scope and timelines currently contemplated; that Skanska and Vertiv will coordinate effectively in delivering the project; that the Company will have access to sufficient financing, on acceptable terms, to fund the build-out of the Norway site; that long-lead power equipment and other critical materials will be delivered on expected timelines and at expected costs; that all required permits, power capacity, grid connections and regulatory approvals will be obtained and maintained; that demand for Nordic data center capacity will continue and that the Company will secure tenants for the Norway site on acceptable terms; and that there will be no material adverse change in construction costs, labour availability, supply chains, energy prices, currency exchange rates, or economic, market or regulatory conditions in Norway or elsewhere. Although the Company believes these assumptions were reasonable when made, they may prove to be incorrect.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to: the risk that the engagement of Skanska or Vertiv is terminated, modified or does not proceed on the terms, scope or timelines currently contemplated, or does not deliver the anticipated benefits; counterparty performance risk; construction, development and execution risks, including delays, cost overruns, design changes and labour or contractor shortages; supply chain risks, including delays in the delivery of long-lead power and other critical equipment; the availability, cost and timing of financing; the risk that the Company is unable to obtain or maintain required permits, power capacity, grid connections or regulatory approvals; the risk that the Company is unable to secure tenants or customer contracts for the Norway site on acceptable terms, or at all; changes in demand for data center, AI and high-performance compute capacity in the Nordic region; competitive risks; technology obsolescence; fluctuations in power and energy costs; foreign exchange risk; risks relating to political, economic and regulatory conditions in Norway; and the other risk factors described in the Company's most recent annual information form, management's discussion and analysis and other continuous disclosure documents available on SEDAR+ at www.sedarplus.ca, and in the Company's filings with the U.S. Securities and Exchange Commission available on EDGAR at www.sec.gov. The foregoing list of factors is not exhaustive.
Readers are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Except as required by applicable securities laws, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/319946
Source: Bitzero Holdings Inc.
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General Motors GM shares fell more than 7% in premarket trading Tuesday despite the automaker reporting stronger-than-expected third-quarter earnings and revenue, as investors weighed its updated annual outlook against rising costs and pressure on parts of its business. The Detroit-based automaker reported adjusted earnings before interest and taxes (EBIT) of $4.1 billion, up 21.6% from a year earlier.
General Motors (GM - Free Report) came out with quarterly earnings of $3.7 per share, beating the Zacks Consensus Estimate of $3.55 per share. This compares to earnings of $2.8 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.23%. A quarter ago, it was expected that this an automotive manufacturer would post earnings of $3.13 per share when it actually produced earnings of $3.57, delivering a surprise of +14.06%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
General Motors, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $50.02 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 3.75%. This compares to year-ago revenues of $48.59 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
General Motors shares have added about 1.8% since the beginning of the year versus the S&P 500's gain of 12.4%.
What's Next for General Motors?While General Motors has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for General Motors was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.70 on $45.37 billion in revenues for the coming quarter and $13.54 on $185.27 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Tesla (TSLA - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 21.
This electric car maker is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of -10%. The consensus EPS estimate for the quarter has been revised 10.5% lower over the last 30 days to the current level.
Tesla's revenues are expected to be $27.78 billion, down 1.1% from the year-ago quarter.
Should You Invest in General Motors Company (GM)?
Before you invest in General Motors Company (GM), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
GM beat earnings estimates and unveiled a massive new buyback, yet the stock is falling hard this morning. The reason comes down to one part of the guidance that left Wall Street wanting more.
General Motors (NYSE:GM | GM Price Prediction) coupled a Q3 2026 earnings beat with a fresh buyback, yet its full-year outlook is drawing sellers. In morning trading, General Motors shares are down 6% to $77.87. Guidance ranges that tightened around unchanged midpoints sit at the center of the selloff.
Meanwhile, Ford Motor (NYSE:F) stock is down 2% to $11.94, a softer slide. Tesla (NASDAQ:TSLA) shares are down 0.3% to $366.95, holding close to even by comparison.
For a sector-level check, the Consumer Discretionary Select Sector SPDR ETF (NYSEARCA:XLY) is down 0.1% to $114.40. At the same time, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.2% to $764.77, noting the General Motors stock selloff as company-specific.
Narrowed Guidance Overshadows a Clean Beat
General Motors reported Q3 adjusted earnings per share (EPS) of $3.70, exceeding the $3.63 consensus. On the top line, General Motors revenue reached $50.02 billion against a $48.76 billion estimate.
Alongside the results, the General Motors board approved a new $20 billion multiyear share repurchase authorization with no end date. That authorization follows completion of a prior $6 billion program, and directors also declared a quarterly dividend of $0.18 per share.
Management narrowed the full-year 2026 adjusted operating profit range at General Motors to $14.5 billion to $15.5 billion, from $14 billion to $16 billion. Unchanged midpoints meant the outlook delivered no upgrade to coupled with the beat and the buyback.
Guidance for adjusted EPS at General Motors moved in step, tightening to $12.75 to $13.75 from $12 to $14. Its full-year profit forecast also missed Wall Street estimates, a gap now reflected in the slide in General Motors shares.
Cash Flow Rises as Cost Pressures Build
General Motors raised its adjusted automotive free cash flow forecast to $11.5 billion to $12.5 billion, up from $9.5 billion to $11.5 billion. That stronger cash generation gives the new buyback a firmer funding base.
Costs are moving the other way at General Motors. Leadership now expects commodity inflation, including memory chip costs, to land at the top of its prior range. Chief executive Mary Barra stated that the company is working to continue its momentum despite growing inflationary pressures.
Outside North America, General Motors showed clear strain in Q3. Its international segment posted adjusted operating profit of $28 million, down 87.7%, while China equity income fell 60.3% to $32 million.
Earlier this month, General Motors reported lower Q3 U.S. sales as a steep drop in electric vehicle sales offset pickup gains. Electric vehicle strategy also weighed on the quarter, which carried $238 million in strategic realignment charges.
Ford and Tesla Post Far Smaller Moves
General Motors and Ford earn much of their profit from gas-powered pickups and SUVs. Ford shares are posting a far smaller decline despite that shared profit base.
Tesla sells only electric vehicles. Notably, Tesla stock is barely moving this morning.
As of June 30, Tesla stock made up 19.6% of the XLY consumer discretionary fund’s net assets. In contrast, General Motors stock accounted for 1.7% of that fund.
Commodity Costs Hold the Key for General Motors
North America remains the engine for General Motors, with adjusted operating profit in that region up 43.4% to $3.59 billion in Q3. That strength, the raised cash flow forecast and the new buyback form the main argument for owning the shares.
Unchanged guidance midpoints, a sharp international slowdown and rising input costs weigh on the outlook. Investors’ General Motors share positions should stay moderate until commodity costs settle.
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I když americká automobilka General Motors dodala dobré výsledky hospodaření za letošní třetí kvartál, které překonaly očekávání trhu, tak akcie se v premarketu vydaly dolů až o sedm procent. Stojí za tím aktualizace celoročního výhledu, jež nepřinesla zvýšení středních hodnot prognóz zisku. Nepomohlo ani oznámení o zpětném odkupu akcií v hodnotě 20 miliard dolarů.
Tržby GM ve třetím kvartálu vzrostly meziročně o 2,9 procenta na 50 miliard dolarů, zatímco analytici oslovení agenturou Bloomberg očekávali o půldruhé miliardy méně. Upravený zisk na akcii činil 3,70 dolaru při konsenzu 3,57 dolaru a upravený provozní zisk EBIT dosáhl 4,1 miliardy dolarů, což rovněž překonalo konsenzus trhu a znamenalo meziroční růst o téměř 22 procent.
Největší pozornost investorů však upoutal výhled na celý rok. GM nově očekává upravený EBIT v rozmezí 14,5 až 15,5 mld. USD oproti předchozí prognóze 14 až 16 mld. USD. Upravený zisk na akcii firma odhaduje na 12,75 až 13,75 USD, zatímco dosud počítala s pásmem 12 až 14 USD.
Přestože se rozpětí prognóz zúžila, jejich střední hodnoty zůstaly beze změny. V případě EBIT činí stále 15 miliard dolarů a u zisku na akcii 13,25 USD. Trh tak krok vyhodnotil jako omezení potenciálu pozitivního překvapení ve zbytku roku, vysvětlil server Yahoo Finance.
Společnost také navýšila očekávání upraveného free cash flow v automobilové divizi, a to na 11,5 až 12,5 mld. USD z dřívějších 9,5 až 11,5 mld. USD.
Management se zároveň snažil investory povzbudit oznámením nového víceletého programu zpětného odkupu akcií v celkovém objemu 20 miliard dolarů, který není časově omezen. Představenstvo rovněž schválilo čtvrtletní dividendu ve výši 0,18 USD na akcii.
„Domníváme se, že tato strategie se osvědčila,“ uvedla ve svém dopise akcionářům generální ředitelka Mary Barraová. Nový program podle ní potvrzuje odhodlání společnosti zvyšovat hodnotu pro akcionáře i v náročném prostředí.
GM zároveň upozornila na pokračující tlak na nákladovou stránku podnikání. Automobilka nyní počítá s komoditní inflací kolem dvou miliard dolarů, tedy při horní hranici dříve uváděného rozpětí. Do nákladů se promítají mimo jiné logistické výdaje a ceny paměťových čipů DRAM.
Pozitivem naopak zůstávají celní náklady, které se podle vedení pohybují u spodní hranice odhadovaného pásma 2,5 až 3,5 mld. USD.
Slabé elektromobily
Co se týče konkrétních segmentů GM, tak prodeje elektromobilů se propadly přibližně o 62 procent na zhruba 25 500 vozů. Podíl elektrických modelů na celkových amerických prodejích GM tak klesl z více než devíti procent před rokem na méně než čtyři procenta. Bez započtení elektromobilů by přitom prodeje automobilky meziročně mírně vzrostly, podotkl Yahoo Finance.
Slabší poptávku po elektromobilech totiž částečně kompenzoval tradiční byznys s velkými pickupy. Prodeje lehkých pickupů vzrostly o 9,3 procenta, přičemž model Chevrolet Silverado posílil o více než 13 procent na více než 100 tisíc prodaných vozů. Růst zaznamenal i GMC Sierra. Naopak těžké verze těchto modelů vykázaly meziroční pokles.
GM přesto uvedla, že zůstává na cestě k udržení pozice lídra severoamerického trhu full-size pickupů již sedmý rok v řadě.
DETROIT, Oct. 20, 2026 /PRNewswire/ -- General Motors (NYSE: GM) today reported third-quarter 2026 revenue of $50.0 billion, net income attributable to stockholders of $3.3 billion, and EBIT-adjusted of $4.1 billion. The company is updating its full-year 2026 EBIT-adjusted guidance, narrowing the range.
General Motors’ (GM.N) third-quarter results easily beat analyst expectations on the back of resolute shoppers who continue to spring for pricey pickups and SUVs.
The company on Tuesday said quarterly earnings before interest and tax, not including one-time items (adjusted EBIT) rose 22% from a year earlier, to $4.1 billion. That amounted to $3.70 per share, topping analyst expectations of $3.63, according to LSEG data.
The automaker said it expected to end 2026 with adjusted EBIT in the range of $14.5 billion to $15.5 billion, narrowed from previous guidance of $14 billion to $16 billion. The company said it remained confident despite inflationary pressures from higher logistics and energy costs, tariffs and other expenses.
DETROIT — General Motors is set to report its third-quarter earnings before the bell Tuesday.
Here is what Wall Street is expecting, according to average estimates compiled by LSEG:
Earnings per share: $3.63 adjusted estimatedRevenue: $48.70 billion estimatedThose results would mark relatively flat revenue compared with a year earlier and a roughly 30% increase in adjusted earnings per share. GM's 2025 third-quarter results included $48.59 billion in revenue, net income attributable to stockholders of $1.3 billion and earnings per share of $2.80 adjusted.
Investors will be watching to see if GM raises its 2026 guidance and for any early indications of expectations for next year, which Wall Street expects will be difficult for the U.S. automotive industry.
"While we expect in-line to slightly better 3Q26 prints, investor focus is likely to be on 2027 revisions and we don't see results driving meaningful upside," JPMorgan analyst Rajat Gupta said in an Oct. 11 investor note.
Wall Street analysts are mixed on whether GM, which has regularly raised guidance during the year, will do so Tuesday amid concerns of slowing sales and rising commodity costs.
GM raised its 2026 forecast when reporting second-quarter results to include adjusted earnings before interest and taxes of between $14 billion and $16 billion, or $12 and $14 adjusted EPS. Its forecast for adjusted automotive free cash flow is between $9.5 billion and $11.5 billion.
Aside from results and guidance, investors will be watching for updates on the company's launch of redesigned full-size pickup trucks, its warranty improvements and any notable growth in GM's software and service operations.
This is developing news. Please check back for additional updates.
Key Takeaways General Motors' Q3 EPS is expected to rise 26.7% to $3.55, extending its streak of 16 earnings beats.GM's U.S. sales fell 5.5% in Q3, but disciplined pricing and software growth could support profitability.GM remains a Hold as China restructuring and software gains face inflation, logistics and onshoring costs. General Motors (GM - Free Report) is slated to release third-quarter 2026 results tomorrow, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $3.55 and $48.21 billion, respectively.
The earnings estimate for the to-be-reported quarter has moved up by 5 cents over the past seven days. The bottom-line projection indicates a year-over-year increase of 26.7%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year contraction of 0.1%.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for GM’s revenues is pegged at $185.3 billion, suggesting a marginal uptick of 0.1% year over year. The consensus mark for full-year EPS is pegged at $13.54, calling for a 27.7% year-over-year contraction.
Notably, General Motors surpassed earnings estimates in each of the past 16 quarters. And our proven model predicts an earnings beat for the company this time around as well.
Earnings Whispers for GMThe combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
General Motors has an Earnings ESP of +1.38% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at PlayGeneral Motors delivered 670,974 vehicles in the third quarter of 2026 in the United States, down 5.5% year over year. Sales declined across Chevrolet, GMC and Cadillac brands but inched up 8% for the Buick brand. Even with weaker third-quarter sales in the United States, General Motors remained the top-selling automaker in the country.
GM’s closest peer Ford’s (F - Free Report) U.S. sales fell 6.6% year over year to 509,764 vehicles in the third quarter of 2026. Meanwhile, Toyota’s (TM - Free Report) sales in North America were down 0.6% in the third quarter
Our model estimates for General Motors’ GMNA unit revenues (which accounts for the bulk of total revenues) are pegged at $39.4 billion, implying a year-over-year decline of 2.8%. The slowdown could weigh on total revenues, although expanding software and digital services may provide some cushion.Unlike vehicle sales, software revenues carry much higher margins and generate recurring cash flows.
GM’s disciplined pricing strategy is another potential support for profitability. By keeping incentives below the industry average for more than three years, the automaker has avoided aggressive discounting, helping protect margins amid tariff-related costs and inflation. Reflecting this resilience, we expect GM North America’s operating income to total $3.17 billion, implying growth of 26% from the year-ago quarter.
Encouragingly, General Motors has also overhauled operations in China by rightsizing, streamlining dealer networks, cutting costs and rolling out new products. These efforts have paid off, and the company is expected to have witnessed improved profitability in China.
General Motors’ Price Performance & ValuationYear to date, shares of GM have gained more than 3%, outperforming the industry as well as peers like Toyota and Ford.
YTD Price Comparison Image Source: Zacks Investment Research
GM also appears undervalued. The company is trading at a forward earnings multiple of 0.39, way lower than the industry.
Image Source: Zacks Investment Research
Our Take: GM Stock Still a HoldGeneral Motors continues to lead the U.S. market, backed by strong demand for full-size pickups, SUVs and commercial fleet vehicles. Disciplined pricing supports profitability, and the next-generation Chevrolet Silverado and GMC Sierra should further strengthen its competitive position, while restructuring in China is paying off.
Beyond this core, GM is steadily turning its software business into a meaningful profit driver. OnStar subscriptions keep growing, and Super Cruise is reaching more models, with management expecting more than $3 billion of recognized revenues and deferred revenues approaching $7.5 billion in 2026. GM Energy and GM Defense further broaden the company’s earnings base beyond traditional vehicle manufacturing.
These strengths are tempered by near-term cost pressures from commodities, logistics and DRAM components. Management expects commodity inflation, including logistics, of $1.2-$1.7 billion in 2026. Onshoring costs will also rise as production shifts to the United States, with the largest fourth-quarter impact coming from moving Escalade production to the Orion Assembly plant, and together these factors are likely to weigh on margins in the near term.
Even so, GM looks poised to extend its earnings beat streak in third-quarter 2026 and remains well positioned for the long haul. Still, near-term risks keep us from turning more positive, so we maintain a Hold rating. Existing shareholders should stay put, while new investors may wait for a better entry point.
