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

General Motors (GM) reported a 22% increase in quarterly earnings before interest and tax (adjusted EBIT) to US$4.1 billion, or US$3.70 per share, surpassing analyst expectations of US$3.63 per share. Despite this strong performance, GM's shares fell about 4% in premarket trading after the automaker revised its full-year adjusted EPS forecast to between US$12.75 and US$13.75, which is below analyst estimates of US$13.41 per share.

GM's guidance for adjusted EBIT in 2026 narrowed from previous guidance of US$14 billion to US$16 billion, resulting in a narrower range than previously expected. The company cited inflationary pressures from higher logistics and energy costs, tariffs, and other expenses as factors contributing to the miss. GM remains confident in its business despite these challenges and announced a multi-year, US$20 billion stock buyback program, which has already resulted in the purchase of about US$29.5 billion of shares since 2023.