General Motors reported a stronger third quarter than Wall Street expected on Tuesday, Oct. 20, as big pickups made up for a collapse in electric-vehicle sales. Net income attributable to stockholders rose to $3.3 billion from $1.3 billion a year earlier, on revenue of $50.0 billion, up 2.9%. Adjusted earnings came to $3.70 a share, up from $2.80.
That beat the $3.63 a share analysts expected, according to LSEG data cited by Reuters, and the $3.57 Bloomberg consensus cited by Yahoo Finance. Revenue topped Bloomberg's $48.52 billion estimate. EBIT-adjusted profit, the measure GM manages to, rose 21.6% to $4.1 billion.
Investors focused on the forecast instead. GM shares were down 5.37% at $78.31 shortly after 10 a.m. Eastern, according to Yahoo Finance and Globe and Mail market data, after Reuters reported that the midpoint of GM's new earnings range came in below analysts' $13.41 a share.
A narrower outlook, not a lower one
GM didn't cut its 2026 forecast so much as tighten it around the same middle. In July it had raised guidance for the second time this year; now it has trimmed both ends of the range. It raised its cash-flow target and approved a new $20 billion share buyback after finishing a $6 billion program announced in January.
GM's 2026 guidance, updated Oct. 20
| Measure | New guidance | Previous guidance |
|---|---|---|
| EBIT-adjusted | $14.5B to $15.5B | $14.0B to $16.0B |
| Adjusted automotive free cash flow | $11.5B to $12.5B | $9.5B to $11.5B |
| EPS-diluted-adjusted | $12.75 to $13.75 | $12.00 to $14.00 |
| Net income attributable to stockholders | $8.9B to $9.5B | $8.4B to $9.8B |
Source: GM third-quarter 2026 results release (SEC Form 8-K), Oct. 20, 2026.
Costs are the pressure point. GM now expects about $2 billion in commodity inflation this year, the top of its earlier $1.5 billion to $2 billion range, including logistics and memory-chip costs, Yahoo Finance reported. It cut its expected benefit from looser federal regulations to about $500 million from as much as $750 million. Gross tariff costs are tracking toward the low end of GM's $2.5 billion to $3.5 billion range. GM expects better results in 2027 if consumer demand holds and cost pressures ease, Reuters reported.
Trucks up, EVs down
North America did the heavy lifting. GM's North American unit earned $3.6 billion on an EBIT-adjusted basis, up 43.4%, with an 8.7% margin, up from 6.2%. GM International earned just $28 million, down from $226 million, and GM Financial's adjusted pretax profit slipped 16.9% to $668 million.
The mix explains much of it. GM sold 670,974 vehicles in the U.S. in the quarter, down 5.5%. Its EV sales fell about 62% to roughly 25,500, while light-duty pickup sales rose 9.3% and Silverado light-duty sales climbed 13.3% to 100,221, Yahoo Finance reported. GM's U.S. market share slipped to 16.1% from 16.8%, according to the results release. EV restructuring charges fell to $238 million in the quarter, from $1.6 billion a year earlier.
What it means for truck and SUV shoppers
The quarter shows how much GM depends on full-size trucks, and the next big test is the redesigned pickup. Chevrolet's website lists the next-generation 2027 Silverado 1500 as available in late 2026. GM's results suggest its truck business has room to absorb higher costs for now, but $2 billion in commodity inflation and tariff bills in the billions are worth watching as GM sets prices for the new trucks. The EV picture is the opposite: GM's electric sales have fallen sharply, with the Chevrolet Equinox EV down 92.4% in the third quarter to 1,905 units, according to Yahoo Finance.
GM also declared a quarterly dividend of 18 cents a share, payable Dec. 17 to shareholders of record on Dec. 4.
