GM Board Approves New $20 Billion Buyback After Completing Prior $6 Billion Program; Q3 Adjusted EBIT Rises to $4.1 Billion

General Motors' board of directors has approved a new $20.0 billion multi-year share repurchase authorization, the company announced alongside third-quarter 2026 results, after completing the $6.0 billion repurchase program it had announced in January 2026, according to General Motors' official release. The quarter also brought adjusted earnings before interest and taxes (EBIT-adjusted) of $4,106 million, up from $3,376 million a year earlier, alongside a narrower full-year guidance range and a roughly 5% premarket share-price decline reported by CNBC.

New Buyback Follows a Completed Program

GM said the new $20.0 billion authorization has no expiration date and may be suspended or discontinued at any time at the company's discretion, according to the company's release. The automaker did not disclose a specific timeframe for completing the program, per CNBC's reporting. Because the prior $6.0 billion program was described as completed rather than partially executed, the release discloses no unused balance carrying over into the new authorization.

The buyback activity has coincided with a steady decline in shares outstanding: 849 million as of September 30, 2026, down from 904 million at the end of 2025, 995 million at the end of 2024, and 1.2 billion at the end of 2023, according to GM's release.

Results Beat Wall Street Expectations

GM reported adjusted earnings per share of $3.70, ahead of the $3.63 analysts had expected on average in estimates compiled by LSEG and cited by CNBC. Revenue came in at $50.02 billion versus an expected $48.7 billion. Our calculation, using the exact reported and consensus figures, puts the EPS beat at $0.07, or roughly 1.9% above estimates (3.70 minus 3.63, divided by 3.63), and the revenue beat at $1.32 billion, or about 2.7% above consensus (50.02 minus 48.7, divided by 48.7).

Total EBIT-adjusted of $4,106 million compares with $3,376 million in the prior-year quarter, a 21.6% increase per GM's own reported figures, or roughly 22%. Net income attributable to stockholders rose to $3,335 million from $1,327 million a year earlier.

North America Drives the Gain as EV Charges Shrink

North American operations accounted for $3.6 billion of the company's $4.1 billion in adjusted EBIT, according to CNBC's reporting on the release. GM's own figures show GMNA EBIT-adjusted of $3,592 million, up 43.4% from $2,506 million, with GMNA's margin expanding 2.5 percentage points to 8.7% from 6.2%.

A large swing came from reduced charges tied to GM's electric-vehicle strategic realignment: $238 million in the quarter, down sharply from $1,592 million a year earlier, per the company's reported adjustments. GM said the costs of its EV pullback announced last year are now "substantially completed," having recorded $11.2 billion in such charges since the second half of last year, including $4.6 billion of a planned $7.4 billion in cash payments made through the third quarter, according to CNBC's account of the release.

International results moved the other way. GMI EBIT-adjusted fell 87.7% to $28 million from $226 million, China equity income fell to $32 million from $80 million, and GM Financial's EBT-adjusted declined 16.9% to $668 million from $804 million, per GM's reported figures.

Cash generation improved alongside the earnings gain: automotive operating cash flow rose 32.6% to $8,049 million, and adjusted automotive free cash flow rose 40.0% to $5,882 million, according to the company's release. Trailing four-quarter ROIC-adjusted rose to 24.8% from 18.5%, on trailing EBIT-adjusted of $15.1 billion versus $12.4 billion.

Full-Year Guidance Narrowed, Cash Flow Outlook Raised

GM narrowed its full-year EBIT-adjusted guidance to $14.5 billion-$15.5 billion from a prior $14.0 billion-$16.0 billion range, and adjusted EPS guidance to $12.75-$13.75 from $12.00-$14.00, according to the company's release. At the same time, GM raised its adjusted automotive free cash flow guidance to $11.5 billion-$12.5 billion from $9.5 billion-$11.5 billion.

The narrowing reflects offsetting cost assumptions GM disclosed for the balance of the year. Gross tariff costs are expected at the low end of a previously guided $2.5 billion to $3.5 billion range, per CNBC's reporting. But commodity inflation is now expected around $2 billion, the high end of prior guidance, and warranty costs are expected at the high end of a $1 billion to $1.5 billion range. GM attributed part of the inflation pressure to higher logistics costs and DRAM memory-chip costs affecting multiple industries, according to CNBC.

In our reading of the disclosed ranges — not a company forecast — the combination of a tighter earnings guidance band with a raised free-cash-flow range suggests GM has more confidence in its cash generation than in pinning down a precise full-year earnings outcome, given the push-pull between lower tariff costs and higher commodity and warranty costs described above.

CEO Mary Barra said in a letter to shareholders, as quoted by CNBC: "GM is performing well, and we are working hard to continue our momentum despite growing inflationary pressures through strategic investments in new products and services, and through improved quality and operating efficiency."

Shares Slide Despite the Beat

Despite topping both earnings and revenue estimates, GM shares were off roughly 5% in premarket trading, according to CNBC. The outlet noted that Wall Street analysts had been mixed ahead of the report on whether GM would raise guidance, given concerns about slowing sales and rising commodity costs.

Dividend Declared

GM's board also declared a quarterly dividend of $0.18 per share, payable December 17, 2026, to holders of record as of the close of trading on December 4, 2026, according to the company's release.

Bottom Line

GM closed out a strong third quarter, with adjusted EBIT up roughly 22% and GMNA margins expanding as EV realignment charges faded sharply from a year ago. Management backed that performance with a new $20 billion buyback authorization on top of a completed $6 billion program, and lifted its free-cash-flow outlook for the year. Yet the premarket stock reaction, a roughly 5% decline despite the beat, suggests investors are weighing rising commodity and warranty cost pressures and a narrowed rather than widened earnings range against the headline numbers.