Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $50 billion | Up 3% year-over-year |
| EBIT-adjusted | $4.1 billion | Up 22% year-over-year |
| EPS diluted adjusted | $3.70 | Up more than 30% year-over-year |
| North American margin | 8.7% | Up 2.5 points year-over-year |
| Adjusted automotive free cash flow | $5.9 billion | Up $1.7 billion year-over-year |
Guidance and outlook
- Full year EBIT-adjusted: $14.5 billion to $15.5 billion
- Full year EPS diluted adjusted: $12.75 to $13.75
- Full year adjusted automotive free cash flow: $11.5 billion to $12.5 billion
- Full year capital expenditures: Lower half of the $10 billion to $12 billion range
How management sounded
Positive (+6 on our -10 to +10 scale). Management raised full-year guidance and announced a new $20 billion share repurchase authorization, though they acknowledged intensifying commodity and logistics headwinds. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
2027 Cost Headwinds
Asked: How will GM manage the $2 billion in potential commodity headwinds in 2027?
Answer: Management plans to use warranty improvements, price and mix opportunities from new trucks, software growth, and fixed cost reductions to offset these pressures.
Free Cash Flow
Asked: Why is free cash flow guidance higher, and is it sustainable?
Answer: The increase is driven by operational excellence, lower capital expenditures, and tariff timing, with expectations for consistent or higher cash flow in 2027 as EV restructuring payments decline.
Consumer Demand
Asked: How does the company view the health of the consumer given the high-trim product mix?
Answer: Management sees no noticeable shifts in delinquencies or defaults and believes the consumer remains resilient, though they are maintaining an abundance of caution.
Share Repurchases
Asked: What is the cadence for the new $20 billion buyback?
Answer: The company will be opportunistic and follow its capital allocation framework, signaling that it believes the stock is undervalued.
What to watch before the next call
- The impact of commodity, logistics, and memory cost inflation on 2027 profitability.
- The successful launch and production ramp of the new Chevrolet Silverado and GMC Sierra light-duty pickups.
- The evolution of the Middle East conflict and its impact on international operations.
