General Motors (GM) reported a 22 per cent increase in third-quarter core profit, driven by strong sales of high-margin pickup trucks, although its shares fell after its full-year earnings forecast failed to meet Wall Street expectations.
The Detroit-based automaker said on Tuesday, October 20, 2026, that adjusted earnings before interest and tax (EBIT) rose to $4.1 billion in the third quarter, compared with the same period a year earlier. Earnings reached $3.70 per share, beating analysts’ expectations of $3.63.
Revenue increased by 2.9 per cent to $50 billion, while GM’s North American profit margin improved to 8.7 per cent from 6.2 per cent a year earlier, despite a slight decline in vehicle sales.
However, investors reacted negatively to the company’s annual earnings outlook. GM expects adjusted earnings per share of between $12.75 and $13.75 for 2026, with the midpoint falling below analysts’ average forecast of $13.41. Its shares dropped approximately four per cent in premarket trading.
The company narrowed its full-year adjusted EBIT forecast to between $14.5 billion and $15.5 billion, compared with its previous range of $14 billion to $16 billion.
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GM also warned that inflation affecting commodities, logistics and computer chips would cost it approximately $2 billion this year.
Despite these pressures, the company’s board approved a new, multi-year $20 billion share buyback programme, signalling confidence in its financial position and future performance.
GM said it expected better results in 2027, provided consumer demand remained strong and cost pressures eased.
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