General Motors profits jump in the third quarter, with a new $20 billion buyback

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A car outline next to rising profit bars and a green arrow, with $3.3 billion Q3 profit and gold arrows for a $20 billion buyback.

General Motors (NYSE: GM) reported its third-quarter 2026 results on Tuesday, October 20. Profits rose sharply from a year earlier, cash generation was strong, and the board approved a new $20 billion share buyback.

The quarter in numbers

Compared with the third quarter of 2025:

  • Revenue: $50.0 billion, up 2.9% from $48.6 billion.
  • Net income: $3.3 billion, up from $1.3 billion.
  • Adjusted EBIT (operating profit excluding one-off items): $4.1 billion, up 21.6%.
  • Adjusted earnings per share: $3.70, up 32% from $2.80.
  • Adjusted automotive free cash flow: $5.9 billion, up 40%.

Margins improved too: adjusted EBIT margin rose to 8.2% from 6.9%.

North America carries the results

Almost all of the profit came from GM’s home market. GM North America earned $3.6 billion in adjusted EBIT, up 43%, with an 8.7% margin. The rest of the business was weaker:

  • GM International earned only $28 million, down from $226 million.
  • China equity income fell to $32 million from $80 million.
  • GM Financial, the company’s lending arm, earned $668 million before tax, down 17%.

GM shipped 1.03 million vehicles to dealers worldwide, up from 977,000. In the U.S., however, its market share slipped to 16.1% from 16.8%, and deliveries fell about 6%, partly because the EV market has been smaller than expected and some models were discontinued.

The EV cost is shrinking

The charges GM is booking for reshaping its electric-vehicle plans were much smaller this quarter: $238 million, compared with $1.6 billion a year ago. Over the first nine months of 2026 these charges total $3.6 billion.

Updated outlook for 2026

GM narrowed its forecast for the full year and raised its cash-flow expectations:

New guidance Previous
Adjusted EBIT $14.5–15.5 billion $14.0–16.0 billion
Adjusted EPS $12.75–13.75 $12.00–14.00
Adjusted automotive free cash flow $11.5–12.5 billion $9.5–11.5 billion

Buybacks and dividend

GM has finished the $6 billion buyback announced in January 2026, and the board approved a new $20 billion program with no expiration date. Buybacks have already shrunk the share count a lot: 849 million shares at the end of September, down from 1.2 billion at the end of 2023.

The quarterly dividend stays at $0.18 per share, payable on December 17, 2026, to shareholders on record as of December 4.

Why it matters

GM shows that a traditional carmaker can still generate a lot of cash even while it slows down its EV push. Most of that money is going back to shareholders through buybacks. The weak spots are outside North America, and a slowly shrinking share of the U.S. market.

This article is for information only and is not financial advice.