General Motors (NYSE:GM) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

by · The Markets Daily

General Motors (NYSE:GM – Get Free Report) (TSE:GMM.U) released its quarterly earnings data on Tuesday. The auto manufacturer reported $3.70 EPS for the quarter, topping the consensus estimate of $3.69 by $0.01, Zacks reports. General Motors had a net margin of 2.12% and a return on equity of 19.36%. The business had revenue of $50.02 billion for the quarter, compared to analyst estimates of $48.78 billion. During the same period in the previous year, the firm earned $2.80 EPS. The business’s revenue for the quarter was up 2.9% compared to the same quarter last year.

Here are the key takeaways from General Motors’ conference call:

  • Strong third-quarter results: Revenue reached a record $50 billion, adjusted EBIT rose 22% to $4.1 billion, and adjusted EPS increased more than 30% to $3.70. North American EBIT margin improved to 8.7%.
  • GM raised its 2026 adjusted automotive free cash flow outlook to $11.5 billion–$12.5 billion and narrowed adjusted EBIT guidance to $14.5 billion–$15.5 billion, citing operational execution, lower capital spending, tariff refunds, warranty improvements, and stronger cash generation.
  • The board authorized a new $20 billion multi-year share repurchase program; GM has reduced its diluted share count by 37% since 2023 and repurchased $6.3 billion of shares year to date.
  • GM expects 2027 earnings growth from the new Chevrolet Silverado and GMC Sierra launches, higher software and services revenue, lower EV losses, and warranty improvements, but the outlook assumes customer demand remains strong and commodity, logistics, and memory costs moderate.
  • Commodity, logistics, and DRAM inflation are expected to create roughly a $2 billion headwind in 2026, while annualizing recent price increases could produce an additional $1 billion–$1.5 billion EBIT headwind in 2027. GM also expects continued softness in international operations outside China.

General Motors Trading Down 1.4%

GM opened at $76.02 on Thursday. The firm has a market capitalization of $66.70 billion, a P/E ratio of 17.43, a P/E/G ratio of 0.43 and a beta of 1.40. The firm’s 50 day moving average is $83.77 and its 200-day moving average is $81.25. General Motors has a 52-week low of $65.89 and a 52-week high of $91.85. The company has a quick ratio of 0.97, a current ratio of 1.09 and a debt-to-equity ratio of 1.32.

General Motors Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Friday, December 4th will be given a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Friday, December 4th. General Motors’s dividend payout ratio is 36.36%.

General Motors announced that its board has initiated a share repurchase plan on Tuesday, October 20th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the auto manufacturer to buy up to 27.5% of its shares through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

General Motors News Summary

Here are the key news stories impacting General Motors this week:

  • Positive Sentiment: GM reported third-quarter revenue of $50.02 billion and adjusted EPS of $3.70, exceeding analyst estimates. Adjusted EBIT rose 21.6% year over year to $4.1 billion, while adjusted automotive free-cash-flow guidance increased to $11.5 billion–$12.5 billion. GM third-quarter earnings report
  • Positive Sentiment: The board authorized a $20 billion multiyear share-repurchase program—potentially retiring up to 27.5% of shares—which could support EPS and shareholder returns given GM’s low valuation. The company also maintained its quarterly dividend. GM earnings and buyback analysis
  • Positive Sentiment: GM’s “GM Forward” technology strategy targets faster vehicle development, over-the-air updates, AI-enabled engineering, new EV batteries and “eyes-off” autonomous driving for pickups and SUVs. An AI-enhanced OnStar service could also expand higher-margin subscription revenue. GM vehicle development and AI strategy
  • Neutral Sentiment: Royal Bank of Canada lowered its GM price target from $102 to $98 but retained an “outperform” rating, indicating analysts see upside while acknowledging increased execution and cost risks.
  • Negative Sentiment: GM narrowed its 2026 adjusted EBIT outlook to $14.5 billion–$15.5 billion, leaving the midpoint unchanged, and issued EPS guidance of $12.75–$13.75 versus consensus of $13.44. Investors viewed the lack of an upward revision as evidence that earnings momentum may be slowing. GM narrows 2026 EBIT guidance
  • Negative Sentiment: Analysts warn that $1 billion–$1.5 billion of potential 2027 commodity and logistics inflation could pressure profits. About $3.6 billion of third-quarter EBIT came from North America, leaving GM exposed to weaker consumer demand, tariffs and dependence on high-margin trucks and SUVs.
  • Negative Sentiment: Reports that GM and OnStar may have shared driver-data records without adequate consent create potential privacy, regulatory and reputational risks, including possible insurance-related claims. GM and OnStar driver-data allegations

Analysts Set New Price Targets

GM has been the topic of several analyst reports. Yorkville Ives started coverage on shares of General Motors in a research note on Monday, October 5th. They set an “outperform” rating and a $100.00 price target on the stock. Wells Fargo & Company boosted their price objective on shares of General Motors from $60.00 to $61.00 and gave the company an “underweight” rating in a research report on Wednesday, July 22nd. Truist Financial set a $105.00 price objective on shares of General Motors in a research report on Wednesday, October 7th. Barclays reduced their price objective on shares of General Motors from $110.00 to $105.00 and set an “overweight” rating on the stock in a research note on Wednesday. Finally, UBS Group decreased their target price on shares of General Motors from $112.00 to $109.00 and set a “buy” rating on the stock in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, General Motors has a consensus rating of “Moderate Buy” and an average target price of $99.86.

Read Our Latest Report on General Motors

Insider Buying and Selling

In related news, President Mark Reuss sold 71,079 shares of the stock in a transaction dated Tuesday, July 28th. The stock was sold at an average price of $89.97, for a total value of $6,394,977.63. Following the completion of the transaction, the president owned 92,293 shares of the company’s stock, valued at approximately $8,303,601.21. This represents a 43.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Christopher Hatto sold 6,895 shares of the firm’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $90.00, for a total transaction of $620,550.00. Following the sale, the chief accounting officer directly owned 18,899 shares of the company’s stock, valued at $1,700,910. The trade was a 26.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 549,665 shares of company stock worth $49,010,828 over the last quarter. Company insiders own 0.44% of the company’s stock.

General Motors Company Profile

(Get Free Report)

General Motors Company (NYSE: GM) is a global automotive company headquartered in Detroit, Michigan. Founded in 1908, GM designs, manufactures and sells vehicles and related services through brands including Chevrolet, Buick, GMC and Cadillac.

GM’s product lineup includes passenger cars, pickup trucks, sport utility vehicles, commercial vehicles and electric vehicles. The company is also developing connected-vehicle technologies, driver-assistance systems and charging and energy-management solutions.

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