GM Core Profit Rises 22%; Shares Fall Despite Earnings Beat

General Motors reported third-quarter adjusted earnings before interest and tax of $4.1 billion on Tuesday, October 20, up 22% from a year earlier, as demand for pickups and SUVs supported profitability. Economic Times Markets reported that per-share earnings of $3.70 exceeded the $3.63 analyst estimate compiled by LSEG.

The earnings beat did not translate into an immediate share-price gain: GM shares fell about 6% in premarket trading. The automaker also narrowed its full-year profit forecast and announced board approval for a multi-year, $20 billion share repurchase programme.

Vehicle mix lifts margins

Revenue reached $50 billion, a 2.9% year-on-year increase. In North America, GM's profit margin rose to 8.7% from 6.2%, even as quarterly sales declined slightly.

A greater proportion of large pickup trucks and fewer electric vehicles helped earnings. The report described GM as scaling back sales of historically loss-making EVs following the Trump administration's withdrawal of support for the segment.

Narrower outlook amid cost pressures

GM now expects adjusted EBIT of $14.5 billion to $15.5 billion for 2026, compared with its previous range of $14 billion to $16 billion. The revision raises the lower end and reduces the upper end by the same amount, leaving the midpoint unchanged at $15 billion.

The company maintained confidence in that outlook despite pressure from logistics and energy costs, tariffs and other expenses. It described the road ahead as more challenging but reiterated its expectation of better results next year, conditional on consumer demand remaining strong and commodity and logistics cost pressures easing.

New buyback authorisation follows $29.5 billion of repurchases

The newly approved $20 billion programme is a multi-year authorisation, not a statement that the money has already been spent. GM has repurchased about $29.5 billion of its shares since 2023.

Those earlier repurchases have reduced the number of shares outstanding, helping per-share earnings. That effect is distinct from the reported growth in adjusted EBIT, which excludes one-time items and measures profit before interest and tax.