General Motors beat third-quarter consensus on both adjusted earnings and revenue, then narrowed its full-year profit range and lifted its free-cash-flow target. The stock fell about 5% in premarket trading.
Guidance narrowed, not raised
The company now sees adjusted EBIT of $14.5 billion to $15.5 billion, or $12.75 to $13.75 a share, compared with the July range of $14 billion to $16 billion and $12 to $14. Adjusted automotive free cash flow is expected at $11.5 billion to $12.5 billion, up from the prior $9.5 billion to $11.5 billion. The midpoint of the EBIT range came down slightly; the cash-flow midpoint moved up meaningfully.
The quarter in numbers
Adjusted EPS came in at $3.70 versus a $3.63 estimate. Revenue was $50.02 billion against a $48.7 billion consensus. Net income attributable to stockholders rose to $3.3 billion from $1.3 billion a year earlier. North America generated $3.6 billion of the $4.1 billion in adjusted EBIT.
Costs at the edges of the ranges
Commodity inflation is tracking at the high end of the previous $2 billion guide, driven by logistics and DRAM chips. Gross tariff costs are landing at the low end of the $2.5 billion to $3.5 billion band. Warranty costs are at the high end of the $1 billion to $1.5 billion range.
EV pullback charges winding down
GM said the costs of its electric-vehicle pullback announced last year are substantially completed. The company has recorded $11.2 billion in related charges since the second half of 2025, with $4.6 billion of $7.4 billion in cash outflows paid through the third quarter.
New buyback authorized
The board approved a new multiyear $20 billion repurchase program after completing the $6 billion authorization announced in January. No completion timeline was disclosed.