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GM Surges Despite Fewer Car Sales
20 Oct
Summary
- GM reported a third-quarter profit of $3.34 billion, up from $1.33 billion year-over-year.
- Revenue increased 2.9% to $50.02 billion, exceeding analyst expectations.
- The automaker completed a $6 billion share buyback and approved a new $20 billion plan.
General Motors reported a robust third-quarter profit of $3.34 billion, or $3.73 per share, a notable increase from $1.33 billion, or $1.35 per share, in the same period last year. The automaker's revenue climbed to $50.02 billion, a 2.9% gain, exceeding analyst expectations.
Despite selling 5.5% fewer vehicles in the quarter, attributed to discontinued models and reduced demand for electric vehicles and certain SUVs, GM's financial performance remained strong. The company attributed this resilience to strategic navigation of inflationary pressures.
GM also announced the completion of its previously announced $6 billion share buyback and has approved a new multi-year share repurchase plan valued at $20 billion. The company has narrowed its full-year earnings outlook, expecting between $14.5 billion and $15.5 billion in earnings before interest and taxes.
Looking ahead, General Motors updated its 2026 adjusted earnings per share forecast to a range of $12.75 to $13.75, indicating confidence in future growth and product launches.
