GM 2026 Q3

GM raised full-year EBIT adjusted guidance to $14.5B-$15.5B from $14B-$16B and narrowed EPS guidance to $12.75-$13.75 from $12-$14, citing strong core performance and buyback benefits.

“We now expect EBIT adjusted of $14.5 billion-$15.5 billion, compared with our previous range of $14 billion-$16 billion.”— Paul Jacobson, Executive Vice President and CFO

Full-year adjusted automotive free cash flow guidance was raised to $11.5B-$12.5B from $9.5B-$11.5B, driven by operational excellence, lower capex and tariff timing benefits.

“adjusted automotive free cash flow in the $11.5 billion-$12.5 billion range, up from $9.5 billion-$11.5 billion.”— Paul Jacobson, Executive Vice President and CFO

Quarterly revenue reached a record $50 billion, up 3% year-over-year, marking the highest quarterly revenue reported.

“Revenue for the quarter was a record $50 billion, up 3% year-over-year.”— Paul Jacobson, Executive Vice President and CFO

EV volumes declined year-over-year as GM lapped the expiration of the consumer purchase incentive and deliberately aligned EV production with demand, reversing prior EV volume growth.

“EV volumes declined as we lapped the expiration of the consumer purchase incentive in the third quarter of 2025 and aligned EV production with demand.”— Paul Jacobson, Executive Vice President and CFO

Fourth-quarter full-size pickup volume is expected to fall by roughly 35,000 units year-over-year due to new truck launch downtime, with 2027 truck volumes expected flat versus 2026 before growth resumes in 2028.

“We anticipate a year-over-year volume headwind of approximately 35,000 full-size pickups.”— Paul Jacobson, Executive Vice President and CFO

Management expects truck volume growth and market share gains to resume in 2028 once changeover downtime ends and Orion plant capacity comes online, a shift from the flat volumes expected in 2027.

“As we get into 2028, that's where there's an opportunity for upside.”— Mary Barra, Chair and CEO

GM International (ex-China) EBIT adjusted swung to breakeven, down $200 million year-over-year, driven by a Momenta mark-to-market loss and higher manufacturing/logistics costs, partially offset by South America strength.

“GM International EBIT adjusted excluding China equity income was breakeven in the third quarter, down $200 million year-over-year”— Paul Jacobson, Executive Vice President and CFO

Management now expects continued softness in GM International going forward, reflecting intensifying headwinds from the Middle East conflict, a deterioration from prior expectations.

“we expect continued ongoing softness in GM International, reflecting headwinds from the dynamic environment in the Middle East.”— Paul Jacobson, Executive Vice President and CFO

Deferred revenue from software and services grew 40% year-over-year, with GM on pace to approach $7.5 billion in deferred revenue by year-end, driven by one million new OnStar subscriptions and a one million-vehicle Super Cruise park.

“Year-over-year, deferred revenue from software and services is up 40%.”— Mary Barra, Chair and CEO

Super Cruise penetration on full-size trucks is expected to grow four to five times next year as the technology becomes standard on high-end trims, a sharp acceleration from current adoption levels.

“We expect full-size truck Super Cruise penetration to grow four to five times next year”— Mary Barra, Chair and CEO

North America margin rose to 8.7%, up 2.5 points year-over-year, moving back within the 8%-10% target range after having been pressured by tariffs a year earlier.

“we are solidly back within our 8%-10% margin target, a clear marker of the progress the team has made.”— Paul Jacobson, Executive Vice President and CFO

Commodity, logistics and DRAM cost headwinds intensified since the second-quarter update, with copper and steel at multi-year highs, pushing the full-year cost headwind estimate up to around $2 billion.

“we now expect a headwind from commodity inflation, logistics, and DRAM costs to be around $2 billion for the full year.”— Paul Jacobson, Executive Vice President and CFO

Following strong third-quarter warranty performance, full-year warranty improvement is now expected to be at the high end of the prior $1-1.5 billion range, an upward revision from prior expectations.

“we now expect warranty to be closer to the high end of our $1 billion-$1.5 billion in full-year improvement.”— Paul Jacobson, Executive Vice President and CFO

GM is ramping onshoring investment in the fourth quarter ahead of 2027 U.S. capacity additions, adding near-term cost pressure as part of a new strategic push to strengthen domestic supply chains.

“we are investing approximately $1 billion-$1.5 billion this year to onshore production to the U.S., strengthen our supply chain, and expand our software capabilities.”— Paul Jacobson, Executive Vice President and CFO

Fourth-quarter effective tax rate is now expected to spike to 25%-27%, well above the 20%-21% full-year rate, due to one-time discrete timing items.

“This includes a higher tax rate in the fourth quarter, which is expected to be in the 25%-27% range”— Paul Jacobson, Executive Vice President and CFO

Management acknowledged the international market is getting tougher due to rising Chinese OEM export competition, while noting GM is maintaining share in regions like South America through its Chevrolet portfolio.

“we are seeing that market get tougher because of the challenges, but we are participating in the export market and maintaining share”— Mary Barra, Chair and CEO

Emissions-related regulatory savings, which contributed about $500 million year-to-date, are expected to shrink to a minimal benefit in the fourth quarter as GM laps prior-year savings.

“we expect a minimal benefit in the fourth quarter as we lap savings from last year.”— Paul Jacobson, Executive Vice President and CFO

GM announced a new $20 billion multi-year share repurchase authorization, representing over 25% of current market cap, signaling stronger board commitment to returning capital given perceived undervaluation.

“This morning, we announced a new $20 billion multi-year share repurchase authorization, representing more than 25% of our current market capitalization.”— Paul Jacobson, Executive Vice President and CFO

GM completed its prior share repurchase authorization ahead of expectations, aided by $6.3 billion in year-to-date buybacks despite earlier skepticism about capital return amid EV restructuring costs.

“we completed that authorization ahead of all expectations”— Paul Jacobson, Executive Vice President and CFO

Full-year capital expenditures are now expected at the lower half of the $10 billion-$12 billion range, a reduction from the prior full-range expectation that helps unlock additional free cash flow.

“Capital expenditures are expected at the lower half of the $10 billion-$12 billion range”— Paul Jacobson, Executive Vice President and CFO

Management shifted tone to note that external headwinds are intensifying and the path to 2027 growth is more challenging than previously described, even as they still expect 2027 to be better than 2026.

“there are clear external headwinds, and in some cases, they are intensifying”— Mary Barra, Chair and CEO

Full-year gross tariff costs are now expected to come in at the low end of the prior $2.5 billion-$3.5 billion range, an improvement versus earlier expectations.

“we now expect gross tariff costs to come in at the low end of our $2.5 billion-$3.5 billion range for the full year.”— Paul Jacobson, Executive Vice President and CFO

A recent sharp spike in diesel and fuel prices introduced a new, as-yet-unquantified cost and demand risk that management is actively monitoring, a change from the prior stable fuel cost backdrop.

“it's early with the spike that's just happened in diesel, and we'll see what happens to it.”— Mary Barra, Chair and CEO