General Motors said on October 20 that its third-quarter net income attributable to stockholders rose to $3.3 billion from $1.3 billion a year earlier, as charges tied to its electric vehicle (EV) plans shrank and profit margins in North America widened. The automaker’s board also approved a new $20 billion share repurchase authorization.

Revenue rose 2.9 percent to $50.0 billion from $48.6 billion. EBIT-adjusted, the company’s preferred measure of operating profit, increased 21.6 percent to $4.1 billion, lifting the EBIT-adjusted margin to 8.2 percent from 6.9 percent. Diluted earnings per share were $3.73, compared with $1.35, and adjusted diluted earnings per share rose 32.2 percent to $3.70 from $2.80, according to the results release filed with the US Securities and Exchange Commission.

Special items excluded from EBIT-adjusted totaled $238 million in the quarter, all related to what GM calls its EV strategic realignment, compared with $1.9 billion a year earlier, when such EV charges were $1.6 billion. GM said the charges relate to “our strategic realignment of our EV capacity and manufacturing footprint, including Ultium’s strategic realignment.” For the first nine months of 2026, EV realignment charges reached $3.6 billion, up from $1.9 billion in the same period of 2025.

North America carries the quarter

GM North America earned $3.6 billion on an EBIT-adjusted basis, up 43.4 percent, on revenue of $41.4 billion, for a margin of 8.7 percent, compared with 6.2 percent a year earlier. Wholesale vehicle sales in the region rose to 870,000 from 840,000.

Sales in the US were softer. GM’s US vehicle sales fell to 671,000 in the quarter from 710,000, and its market share slipped to 16.1 percent from 16.8 percent, while total industry sales declined to about 4.17 million from 4.23 million, according to the release.

Outside North America, the picture was weaker. GM International earned $28 million on an EBIT-adjusted basis, down from $226 million, despite revenue rising to $4.1 billion from $3.6 billion. GM’s equity income from China fell to $32 million from $80 million. The company sold 358,000 vehicles in China in the quarter, down from 469,000, as the Chinese industry shrank to 5.4 million vehicles from 6.9 million; GM’s share there slipped to 6.6 percent from 6.8 percent.

GM Financial, the company’s lending arm, reported adjusted earnings before taxes of $668 million, down 16.9 percent from $804 million.

Cash, buybacks and guidance

Automotive operating cash flow rose to $8.0 billion from $6.1 billion, and adjusted automotive free cash flow increased 40 percent to $5.9 billion. GM said it had completed a $6.0 billion buyback program announced in January 2026. The new $20 billion authorization is multi-year with no expiration date and may be suspended or discontinued at any time. Shares outstanding fell to 849 million at September 30 from 904 million at the end of 2025. The board declared a quarterly dividend of 18 cents a share, payable December 17 to holders of record on December 4.

GM raised its full-year 2026 forecast for adjusted automotive free cash flow to $11.5 billion to $12.5 billion, from $9.5 billion to $11.5 billion. It narrowed its other ranges: EBIT-adjusted to $14.5 billion to $15.5 billion, from $14.0 billion to $16.0 billion; net income attributable to stockholders to $8.9 billion to $9.5 billion, from $8.4 billion to $9.8 billion; and adjusted diluted earnings per share to $12.75 to $13.75, from $12.00 to $14.00. The midpoints of the EBIT-adjusted and adjusted per-share ranges were unchanged.

Why it matters

The quarter shows how much GM’s results depend on North America, which generated about $3.6 billion of the company’s $4.1 billion in EBIT-adjusted profit, while the international business and Chinese joint ventures contributed little. Smaller special charges than a year earlier explain much of the gap between the two profit measures: net income more than doubled, while EBIT-adjusted, which excludes those charges, rose 21.6 percent.

For shareholders, GM has returned cash through buybacks this year: its share count has fallen by 55 million since the end of 2025, and the new authorization allows up to $20 billion more in repurchases. For the wider car market, the release shows US industry sales slightly lower than a year earlier and GM losing some share. GM’s quarterly report also records that the company announced in December 2024 that it would no longer fund robotaxi development at its Cruise unit.

The caveats

EBIT-adjusted, adjusted earnings per share and adjusted automotive free cash flow are non-GAAP measures defined by GM. The company said its full-year guidance does not include the potential impact of future adjustments related to special items, such as further EV-related charges.

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