GM shares sink as full-year profit forecast misses Wall Street estimates

On Tuesday, General Motors' shares slipped as the automaker missed Wall Street's earnings-per-share forecast for the full year. Despite a sharp rise in its third-quarter core profit driven by strong pickup truck sales, GM's adjusted EPS for 2026 fell short of analyst expectations. The company reported adjusted EBIT of $4.1 billion, or $3.70 per share, surpassing expectations of $3.63. However, GM narrowed its annual adjusted earnings-per-share forecast to between $12.75 and $13.75, below the $13.41 analysts anticipated.

Inflationary pressures, including logistics, energy costs, tariffs, and other expenses, would amount to about $2 billion this year, according to GM. The company approved a multi-year, $20 billion stock buyback program and has already bought back $29.5 billion of its shares since 2023. This has resulted in a reduced share count, contributing to its improved per-share profit results.

During the third quarter, GM sold a higher mix of large pickup trucks and fewer electric vehicles, which positively impacted its earnings. Revenue for the quarter reached $50 billion, a 2.9% increase from the previous year. In North America, profit margins improved to 8.7%, up from 6.2% a year earlier, despite a minor drop in quarterly sales.

Despite the challenges ahead, GM remains confident in the path forward, assuming continued strong consumer demand and a moderation of cost pressures on commodities and logistics. The company reiterated its expectation that next year's results will be better.