General Motors Stock Falls 6% After Narrowed Full-Year Outlook Overshadows Q3 Earnings Beat and $20 Billion Buyback

General Motors shares dropped roughly 6% on Tuesday after the automaker narrowed its full-year 2026 profit guidance, disappointing investors despite reporting third-quarter results that beat expectations and announcing a major new share repurchase program. The stock decline dragged Ford modestly lower while Tesla was largely unchanged.

For the third quarter, GM posted revenue of $50.0 billion, net income of $3.3 billion, and EBIT-adjusted of $4.1 billion. The results cleared Wall Street estimates, but investors focused instead on the updated full-year guidance, which narrowed the EBIT-adjusted range to $14.0 billion to $16.0 billion from the prior range of $13.5 billion to $15.5 billion. The company also tightened its EPS-diluted-adjusted forecast to $12.00 to $14.00, up from $11.50 to $13.50, and raised its adjusted automotive free cash flow guidance to $9.5 billion to $11.5 billion from $9.0 billion to $11.0 billion.

Alongside the earnings release, GM's board approved a new $20 billion share repurchase authorization and declared a quarterly cash dividend of $0.18 per share. The buyback was seen as a shareholder-friendly move, but the narrowing of the guidance range, which reduced the ceiling as well as the floor, appeared to signal less upside than the market had anticipated.