GM Earns More by Selling Less as Trucks Offset EV Slump
General Motors reported a paradoxical third quarter on Oct. 20, 2026. Revenue reached $50.02 billion, up 2.9% from $48.59 billion a year earlier and above consensus around $48.52 billion to $48.77 billion. Net income attributable to stockholders was $3.3 billion, up 151% from about $1.32 billion, with diluted earnings per share of $3.73 versus $1.35 a year ago. Adjusted EBIT rose 21.6% to $4.1 billion from $3.38 billion, and adjusted EPS rose 32.2% to $3.70 from $2.80, beating estimates near $3.63. Adjusted operating margin widened to 8.2% from 6.9%. Yet US deliveries fell 5.5% to 670,974 units from 710,347, while global vehicle sales of 1.03 million units beat consensus near 982,500.
GM narrowed its 2026 outlook while lifting cash flow. It now expects adjusted EBIT of $14.5 billion to $15.5 billion, compared with $14.0 billion to $16.0 billion previously; adjusted diluted EPS of $12.75 to $13.75, compared with $12.00 to $14.00; and adjusted automotive free cash flow of $11.5 billion to $12.5 billion, compared with $9.5 billion to $11.5 billion. The board approved a new multi-year $20 billion share repurchase authorization and declared a quarterly dividend. Third-quarter adjusted automotive free cash flow was $5.88 billion, up from $4.20 billion.
North America was the profit engine. GM said internal-combustion volumes rose 8% year over year. Chevrolet sold 437,321 units in the quarter, down 4.6%, and GMC sold 157,103 units, down 4.7%, with Cadillac posting a sharper drop. US EV sales fell 61.7% to 25,473 units from 66,501, with Cadillac's four EVs at 12,358 units accounting for 48.5%. The company blamed a smaller-than-expected EV market after the $7,500 consumer tax credit ended in 2025, plus discontinued models and a tough comparison: buyers rushed purchases last year ahead of auto tariffs and the credit expiry. EV production was aligned with demand, and only the Canadian-built BrightDrop van was cut.
Costs explained the cautious tone. GM expects gross tariff costs at the bottom of its $2.5 billion to $3.5 billion range after supply-chain rework, production shifts, supplier talks and government offsets. Warranty costs are seen at the top of a $1.0 billion to $1.5 billion estimate, while commodity-related inflation, including logistics and memory chips, should total about $2 billion, the high end of its outlook. Management said steel, aluminum and logistics rose sharply in the last two months and could weigh by $2 billion next year if levels hold. The 151% jump also reflects a depressed base: Q3 2025 net income had fallen 57% from 2024 on EV production changes and supplier obligations.
Shares fell more than 5% premarket despite the beat, with one quote down 6.98% at $76.97, as investors focused on the narrowed guidance midpoint and cost pressure. For shareholders, the buyback cushions the miss; for suppliers and plant workers, steady ICE truck output helps while EV supply chains stay weak; for buyers, pickup and SUV prices stay firm. Ahead, GM is betting on its core franchise, holding ICE momentum, matching EV output to demand, and pressing tariff mitigation to defend the $11.5 billion free-cash-flow floor that funds returns.