The key facts

  • GM's Q3 profit was $3.3 billion, with revenue up 2.9% to $50.1 billion
  • The US-Iran war added $400 million in raw material costs; shares fell 5.3%
  • New $20 billion share buyback program; full-year guidance raised to $12.75–13.75 per share

Profit Doubled, but the Market Reacted Negatively

General Motors reported strong third-quarter results on Tuesday, October 20, 2026, and announced a new share buyback program, but the news was overshadowed by another surge in commodity prices. The company's shares fell 5.3% in morning trading. Profit came in at $3.3 billion — more than double the year-earlier result, which had been marred by one-time expenses related to winding down electric vehicle investments. Revenue rose 2.9% to $50.1 billion.

The War Added $400 Million in Costs

The US-Iran conflict in the Middle East caused prices of copper, steel, and diesel fuel to rise, adding $400 million to the company's costs in 2026, Chief Financial Officer Paul Jacobson told an investor conference. 'We are seeing significant inflation... literally over the last, probably, 10 weeks,' he said.

Sales and Car Prices

Vehicle sales in North America and a number of other markets declined compared with last year, but the average vehicle price reached $52,000, above last year's level and reflecting, according to the company, sustained demand for large pickups and luxury models. GM plans to soon unveil the refreshed 2027 model-year Chevrolet Silverado and GMC Sierra pickups.

Guidance and Analyst Caution

Chief Executive Officer Mary Barra told analysts that, despite a more challenging road ahead, the company continues to believe 2027 will be a strong year and better than 2026 — provided demand holds and pressure from commodity prices, logistics, and other recent costs eases. GM raised its full-year adjusted earnings guidance to $12.75–13.75 per share, but Briefing.com analyst Patrick O'Hare noted that the midpoint of that range is below Wall Street's consensus forecast. JPMorgan Chase analysts called the results and guidance 'mostly in line with expectations,' but pointed out that investors will likely doubt the company's confidence given rising commodity and logistics costs, with the 'better' 2027 contingent on costs easing.

$20 Billion Share Buyback

The new $20 billion share buyback program follows the completion of the previous $6 billion one. Since 2015, GM has bought back $42.7 billion worth of shares, reducing their count by 45%. The company's presentation noted that the gradual reduction in shares outstanding over more than a decade increases 'the potential to translate operating results into stronger per-share performance.' Barra did not give a timeline for the new buybacks, explaining: 'We do want to signal that we believe the company is undervalued, and therefore we believe this is the best way to deliver value to our shareholders.'

A Pivot Toward Hybrids Instead of Electric Vehicles

GM sharply slowed the ramp-up of electric vehicle production following regulatory changes made under President Donald Trump. At the same time, the company confirmed plans for additional hybrid vehicles and promised to reveal details closer to their launches.