GM raises its 2026 cash forecast and approves a $20 billion buyback

What happened

General Motors reported on Tuesday 20 October third-quarter revenue of $50.0 billion, net income attributable to stockholders of $3.3 billion and EBIT-adjusted of $4.1 billion. ^[1]

A year earlier the same quarter brought revenue of $48.6 billion, net income of $1.3 billion and EBIT-adjusted of $3.4 billion, the release shows. EBIT-adjusted is GM's operating profit before interest and taxes, leaving out items the company treats as special. ^{[1, 6]}

The board also approved a new $20 billion share repurchase authorization with no expiration date, after finishing the $6 billion program announced in January. GM reported 849 million shares outstanding on 30 September, down from 904 million at the end of 2025. ^{[1, 6]}

Why it matters

GM now expects adjusted automotive free cash flow, the cash its car business keeps after investment, of $11.5 billion to $12.5 billion for 2026, up from $9.5 billion to $11.5 billion in July. Chief financial officer Paul Jacobson said on the call that the raise came from operations, lower capital spending than planned and the timing of tariff payments. Expected EBIT-adjusted narrowed to $14.5 billion to $15.5 billion from $14.0 billion to $16.0 billion, and net income to $8.9 billion to $9.5 billion from $8.4 billion to $9.8 billion. ^{[1, 3, 4]}

Where the profit came from

North America earned $3.6 billion of the quarter's $4.1 billion, with a margin of 8.7 percent against 6.2 percent a year earlier. The quarterly report credits lower warranty costs, smaller write-downs on unsold EVs and more sales of full-size pickups, partly offset by lower prices. GM International earned $28 million, against $226 million a year earlier. ^{[1, 2]}

Jacobson said combustion-engine vehicle volumes were up 8 percent while EV volumes declined, after the federal purchase incentive ended in the third quarter of 2025. Charges for scaling back EV capacity totaled $3.6 billion in the first nine months of 2026, the quarterly report says, after $7.9 billion in 2025. GM's US sales were 671,000 vehicles, against 710,000 a year earlier. ^{[4, 2, 1]}

Tariffs and rising costs

GM said tariffs could cost $2.5 billion to $3.5 billion of EBIT-adjusted in 2026, and Jacobson said the gross cost should land at the low end. The company recorded $0.7 billion of favorable adjustments in nine months for tariffs that became refundable after the Supreme Court ruled in February. ^{[2, 4]}

Jacobson said copper was at record levels and that commodity, freight and memory chip costs would reach about $2 billion in 2026. He said that annualizing the inflation seen since July would add $1 billion to $1.5 billion of EBIT-adjusted headwind in 2027. ^{[4, 5]}

What settles it next

The quarterly dividend of $0.18 a share is payable Thursday 17 December to holders of record on Friday 4 December. Jacobson put the pickup changeover at about 35,000 fewer full-size pickups in the fourth quarter than a year earlier, with the Fort Wayne plant down for four weeks from mid-December. The full-year report will show where cash, tariffs and EBIT-adjusted landed against these ranges. ^{[1, 4]}

Who it reaches

General Motors (GM) is direct: the results, the narrower guidance and the new repurchase authorization are its own, filed with the SEC on Tuesday 20 October. ^{[1, 2]}