Earnings
GM authorizes $20 billion buyback and lifts its cash-flow outlook after a revenue beat
General Motors posted $50.0 billion in third-quarter revenue, raised its free cash flow forecast and set up a buyback more than three times the size of the one it just finished.
HedgeWeekly News Desk ·
General Motors reported third-quarter revenue of $50.0 billion on Tuesday, up from $48.6 billion a year earlier and ahead of the $48.83 billion consensus compiled by MarketBeat. Adjusted earnings per share rose to $3.70 from $2.80, in line with that consensus, while net income attributable to stockholders climbed to $3.34 billion from $1.33 billion.
EBIT-adjusted rose to $4.11 billion from $3.38 billion. Charges tied to the realignment of GM's electric-vehicle capacity, including its Ultium battery operations, fell to $238 million in the quarter from $1.59 billion a year ago, though they total $3.59 billion so far this year. Adjusted automotive free cash flow reached $5.88 billion, against $4.20 billion in the same quarter of 2025.
GM raised its 2026 adjusted automotive free cash flow forecast to $11.5 billion to $12.5 billion, from $9.5 billion to $11.5 billion. It narrowed its EBIT-adjusted range to $14.5 billion to $15.5 billion, from $14.0 billion to $16.0 billion, and its adjusted EPS range to $12.75 to $13.75, from $12.00 to $14.00. The board approved a new $20 billion share repurchase authorization with no expiration date and kept the quarterly dividend at 18 cents.
Why it matters: GM has already completed the $6 billion buyback it announced in January, and its share count fell to 849 million at the end of September from 904 million at the end of 2025, a drop of about 6%. The new authorization signals that capital returns, funded by stronger cash generation, remain central to the investment case even as EV charges keep landing. Holders should watch the 8:30 a.m. ET call with Chair and CEO Mary Barra and CFO Paul Jacobson for the pace of repurchases and any update on remaining EV restructuring costs.