General Motors (NYSE:GM) Announces Quarterly Earnings Results

General Motors (NYSE:GM) (TSE:GMM.U) released its quarterly earnings results on Tuesday. The auto manufacturer reported $3.70 EPS for the quarter, topping analysts’ consensus estimates of $3.69 by $0.01, Zacks reports. The business had revenue of $50.02 billion during the quarter, compared to analysts’ expectations of $48.78 billion. General Motors had a net margin of 1.05% and a return on equity of 18.18%. The business’s quarterly revenue was up 2.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.80 EPS.

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 Price Performance

GM opened at $77.17 on Wednesday. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.97 and a current ratio of 1.14. General Motors has a 52-week low of $62.36 and a 52-week high of $91.85. The stock has a market capitalization of $67.72 billion, a PE ratio of 38.98, a price-to-earnings-growth ratio of 0.46 and a beta of 1.40. The stock’s 50 day moving average price is $83.99 and its 200-day moving average price is $81.23.

General Motors Dividend Announcement

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

General Motors announced that its Board of Directors has authorized a share buyback program on Tuesday, October 20th that allows the company to buy back $20.00 billion in shares. This repurchase authorization allows the auto manufacturer to buy up to 27.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

Trending Headlines about General Motors

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

• Positive Sentiment: GM reported record third-quarter revenue of approximately $50.0 billion, adjusted EBIT of $4.1 billion and adjusted earnings of $3.70 per share, slightly ahead of consensus. Core profits rose on strong North American pickup-truck and SUV demand. GM third-quarter results and guidance
• Positive Sentiment: The board authorized a multiyear $20 billion share-repurchase program, potentially reducing the share count and supporting earnings per share. GM also declared its regular quarterly dividend of $0.18 per share. GM buyback and dividend announcement
• Positive Sentiment: GM raised its 2026 adjusted automotive free-cash-flow outlook to $11.5 billion-$12.5 billion from $9.5 billion-$11.5 billion, helped by stronger operating performance and cash generation. GM cash-flow outlook
• Neutral Sentiment: Management narrowed its full-year adjusted EBIT forecast to $14.5 billion-$15.5 billion from $14.0 billion-$16.0 billion, leaving the midpoint unchanged at $15 billion. The tighter range provides clarity, but investors interpreted the lack of an upward revision as evidence that near-term profit growth may be leveling off.
• Negative Sentiment: Profitability remains heavily dependent on North American trucks and SUVs, while EV demand has weakened after the repeal of the $7,500 tax credit. Planned production pauses, rising costs and GM’s closure of the Brownstown battery plant added to concerns about future growth. GM EV demand commentary
• Negative Sentiment: The buyback drew criticism from the UAW, which argued that capital could instead support workers and domestic investment. More broadly, investors questioned whether repurchases can offset stagnant operating earnings and leverage concerns.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Truist Financial set a $105.00 price objective on shares of General Motors in a report on Wednesday, October 7th. Wells Fargo & Company upped their target price on shares of General Motors from $60.00 to $61.00 and gave the stock an “underweight” rating in a research report on Wednesday, July 22nd. JPMorgan Chase & Co. lowered their price target on General Motors from $120.00 to $110.00 and set an “overweight” rating on the stock in a research report on Monday, October 12th. UBS Group decreased their price objective on General Motors from $114.00 to $112.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Finally, Jefferies Financial Group upgraded shares of General Motors from a “hold” rating to a “buy” rating and upped their price target for the company from $90.00 to $99.00 in a research report on Monday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, General Motors has an average rating of “Moderate Buy” and a consensus target price of $101.18.

Insider Buying and Selling

In related news, EVP Rory Harvey sold 8,882 shares of General Motors stock in a transaction on Monday, July 27th. The shares were sold at an average price of $86.95, for a total value of $772,289.90. Following the sale, the executive vice president owned 28,513 shares in the company, valued at $2,479,205.35. The trade was a 23.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at 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 company’s stock in a transaction 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 completion of the transaction, the chief accounting officer owned 18,899 shares of the company’s stock, valued at $1,700,910. This trade represents a 26.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 549,665 shares of company stock valued at $49,010,828 over the last three months. Insiders own 0.44% of the company’s stock.

General Motors Company Profile

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.