GM Beat Expectations on Almost Everything: The Stock Now Eyes Its Worst Day in 15 Months

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%.

GM Third-Quarter Earnings Beat On Nearly Every Line

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.

Why is GM Stock Falling? Check the Full-Year Outlook

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.

A $20 Billion Buyback Worth About 30% Of GM

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.

What Wall Street Analysts Think Of GM Stock

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