General Motors' third-quarter U.S. sales fell 6.3% and revenue rose only 2.9%, but net income jumped 151% to $3.34 billion, helped by strong full-size truck sales and high-margin subscription services. OnStar recognized revenue rose 15% to $800 million, and GM expects subscription revenue to reach $10.5 billion this year and to add 1 million subscribers by the end of 2026. The company authorized a record $20 billion share repurchase, which the article says could retire roughly a quarter of its shares at current prices. Shares fell about 8% by mid-afternoon on October 20, as CEO Mary Barra cited intensifying external headwinds, including commodity inflation projected to cost about $2 billion this year. The article notes that the higher-priced vehicle strategy is reducing sales volume, though it is paying off on the bottom line for now.
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Original headline: General Motor Q3 Sales Slipped . Its Profits Soared . Here Are 3 Takeaways Investors Must Note .
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- General Motor Q3 Sales Slipped . Its Profits Soared . Here Are 3 Takeaways Investors Must Note .
General Motors' third-quarter net income jumped 151% to $3.34 billion, while revenue rose only 2.9% and U.S. sales fell 6.3%, as the automaker leaned on high-margin full-size trucks. OnStar recognized revenue rose 15% to $800 million, and subscription revenue was on pace to reach $10.5 billion this year, with a goal of adding 1 million subscribers by the end of 2026. GM authorized a record $20 billion share repurchase program, which could retire roughly a quarter of its shares at current prices. Shares fell about 8% by mid-afternoon on Oct. 20 after CEO Mary Barra warned of intensifying external headwinds, with total commodity inflation projected to cost about $2 billion this year. The article argues the trade-off is lower volume for higher margins and says investors should watch how GM addresses affordability and captures rising hybrid demand.
- 2027 Chevy Silverado , GMC Sierra : GM New Profit Drivers
GM is relying on its next-generation full-size pickups to offset higher costs. The 2027 Chevrolet Silverado 1500 and GMC Sierra 1500 are starting production across six plants, beginning at Silao in Mexico, and should reach showrooms by year-end. The changeover will remove about 35,000 vehicles from inventory, but GM expects to build as many trucks in 2027 as it did in 2026. Third-quarter net income rose 151% to $3.34 billion, and revenue grew almost 3% to about $50 billion. North America profit before taxes and interest rose 43% to $3.6 billion even as U.S. sales fell 6.3%, while OnStar revenue reached $800 million, up 15%.
- General Motors Sinks 6% Despite Earnings Beat and New Buyback as Outlook Narrows; Ford Slips, Tesla Barely Budges
General Motors shares fell 6% to $77.87 despite third-quarter adjusted EPS of $3.70 beating the $3.63 consensus and revenue of $50.02 billion topping $48.76 billion, alongside a new $20 billion buyback. Investors reacted to the narrowed 2026 adjusted operating profit guidance of $14.5 billion to $15.5 billion, whose midpoint was unchanged, and to a full-year profit forecast that missed Wall Street estimates. Commodity inflation, including memory chip costs, is now expected at the top of prior ranges, and international adjusted operating profit fell 87.7% to $28 million while China equity income dropped 60.3%. Free cash flow guidance was raised to $11.5 billion to $12.5 billion, while Ford fell 2% and Tesla barely moved.
- General Motors is set to report earnings before the bell. Here's what Wall Street expects
General Motors is set to report its third-quarter results before the market opens on Tuesday. According to LSEG consensus estimates, GM is expected to post adjusted earnings of $3.63 per share on revenue of $48.70 billion, which would mean revenue roughly flat year over year and adjusted EPS up about 30%. Investors will focus on whether GM raises its 2026 guidance and on early signals for 2027, which analysts expect to be difficult for the U.S. auto industry. Analysts are split on a guidance raise amid slowing sales and rising commodity costs, while JPMorgan analyst Rajat Gupta expects in-line to slightly better results but no meaningful upside. Other watch points include the launch of redesigned full-size pickups, warranty improvements and growth in software and service operations.
- Cars Are Changing. How GM Plans to Win in the Age of AI and EVs.
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The article compares Ford and General Motors through two developments that could shape their future. On the positive side, GM earns roughly 70% gross margins on its OnStar and Super Cruise digital services, with 12 million to 13 million OnStar subscribers and $800 million in revenue in the second quarter alone. Ford reports about 1.6 million paid subscribers, BlueCruise subscriptions growing about 40% a year, and a strong Ford Pro commercial business. On the negative side, Chinese automakers are expanding rapidly with low prices, gaining share in Europe and on pace to export 11 million vehicles this year. Ford CEO Jim Farley said Europe now has to deal with the issue, and that it is too late.
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