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.
Yet the stock is heading for its worst day in 15 months, with shares down 6.8% to $77.15 in premarket trading.
A close at that level would mark the steepest one-day drop since July 22, 2025, when the stock lost 8.1%.
Adjusted earnings per share came in at $3.70, above the $3.56 estimate.
Revenue rose 2.9% year over year to $50.02 billion, ahead of the $48.53 billion consensus.
North America did the heavy lifting.
Adjusted EBIT, or earnings before interest and taxes stripped of one-off items, reached $3.59 billion in the region, as margins widened to 8.7% from 6.2% a year ago.
GM posted its best third-quarter full-size pickup sales ever.
GM narrowed its 2026 adjusted EBIT guidance to $14.5 billion to $15.5 billion, from $14 billion to $16 billion. The midpoint stayed at $15 billion.
In other words, a quarter that beat expectations did not lift the annual profit forecast. Costs are part of the reason.
GM now expects about $2 billion in commodity inflation, including logistics and memory chips, compared with up to $2 billion previously.
GM International, the unit that covers markets outside North America, was the weak spot. Its adjusted EBIT came in at just $28 million, against an estimate of $130.4 million.
Meanwhile, U.S. deliveries fell 5.5% to about 671,000 units, and market share slipped to 16.1% from 16.8%, according to the company’s earnings presentation.
The new authorization follows the completion of a $6 billion program. Shares outstanding have already fallen to 849 million from 904 million at the end of 2025.
At Tuesday’s premarket price, GM is worth about $65 billion. As a result, the buyback equals roughly 30% of the company.
The cash is there. Adjusted automotive free cash flow rose 40% to $5.88 billion in the quarter, and GM raised its full-year target to $11.5 billion-$12.5 billion (up from the previous $9.5 billion to $11.5 billion range).
However, a buyback changes how profit is divided, not how much profit there is. Investors on Tuesday are focused on the second part.
Expectations were also high. GM shares had gained 43% over the past 12 months through Monday and hit a record $91.85 earlier this year.
The premarket price leaves the stock 16% below that peak and about 5% lower for the year.
GM carries a Buy consensus rating from 21 analysts tracked by Benzinga Analyst Ratings, with an average price target of $97. That implies about 26% upside from the premarket price.
No firm had moved on the stock after the report as of early Tuesday. Before earnings, targets were moving in both directions.
| Date | Firm | Price Target | Action | Rating |
|---|---|---|---|---|
| Oct 12, 2026 | JPMorgan | $120 → $110 | Lowers | Overweight |
| Oct 12, 2026 | RBC Capital | $100 → $102 | Raises | Outperform |
| Oct 7, 2026 | UBS | $114 → $112 | Lowers | Buy |
| Oct 6, 2026 | Goldman Sachs | $103 → $112 | Raises | Buy |
| Sep 14, 2026 | UBS | $102 → $114 | Raises | Buy |
| Jul 28, 2026 | Tigress Financial | $92 → $130 | Raises | Strong Buy |