Updated October 20, 2026, 10:14 a.m. ET
- The Detroit automaker’s net profit more than doubled thanks to a reduction in exceptional charges in the third quarter.
- Full-size pickup trucks had their best third quarter ever, GM said, boosted by consumer demand.
- GM also announced a $20 billion multi-year stock repurchase authorization during the quarter.
General Motors’ net profit more than doubled in the third quarter compared to the same quarter of 2025 thanks to a decrease in special charges, including changes in production volumes and the location of its vehicles, tariff charges and settlement of contracts with suppliers that previously affected the company.
Although the company reported weaker year-over-year sales, GM said that in the third quarter of 2026, its most popular vehicles – full-size pickup trucks – had the highest sales ever, driven by consumer demand, and also recorded its best calendar year of total fleet sales to date since 2019.
The Detroit automaker, which on Oct. 20 reported results for the quarter ending Sept. 30, said its net income of $3.3 billion increased 151% from net income of $1.32 billion in the same quarter in 2025. GM attributed the strong third-quarter 2026 results to spending discipline, strong pricing strategies and growth in its business outside of auto sales traditional.
GM also announced a $20 billion, multi-year stock repurchase authorization in its earnings release, a move that CEO Mary Barra said in a letter to shareholders “once again demonstrates our board’s commitment to creating even greater shareholder value.”
Changes in electric vehicle production disrupted last year’s third-quarter net profit, which had fallen 57% in that quarter compared to the same quarter of 2024. Contractual obligations to suppliers in a smaller-than-expected electric vehicle market impacted earnings across several quarters in 2025 and early 2026.
GM has recorded $11.2 billion in EV-related charges since it began restructuring its electric vehicle operations in the second half of 2025. Of that amount, the automaker said $7.4 billion had a cash impact on the company’s earnings. Through the end of the third quarter of 2026, GM said it has paid $4.6 billion of that $7.4 billion and expects to pay another $1 billion in cash next quarter. The rest, he says, will be paid in 2027.
GM executives also provided updates on future hybrid production as the automaker cuts volumes of battery electric vehicles.
On a call with investors later on the morning of October 20, Barra said hybrid vehicles currently popular in the United States are in segments in which GM does not compete, such as compact cars and minivans.
“We will have hybrids in our portfolio in several segments, the key segments that we participate in,” Barra said. “They have already been added, there will be no additional (capital) or engineering expenses, and we will talk about it again closer to launch.”
GM repurchased $2.5 billion of its stock in the third quarter, retiring 29 million shares and distributing $200 million in dividends.
GM also changed its full-year pre-tax estimates for the third time in 2026, slightly narrowing the scope of what it expects to do this year.
GM sold fewer new vehicles than a year ago in the United States, citing a smaller-than-expected electric vehicle market after the loss of the federal tax credit in 2025 and missing vehicles that the automaker dropped from its product lineup.
“Trucks will be an important driver of the gradual adoption of Super Cruise and digital revenue in 2027, as we make the technology standard on premium Silverado and Sierra trims, and optional on most others,” Barra said in the letter to shareholders. “We expect the penetration of Super Cruises in our truck portfolio to increase 4-5x next year.”
Consumers opting for monthly subscriptions to OnStar’s suite of products, including the Super Cruise advanced driver assistance system, also contributed to the company’s strong performance in the third quarter. GM reported third-quarter deferred revenue growth of about 40% on a year-over-year basis and said it delivered about 83,000 Super Cruise-equipped vehicles.
GM Defense, a separate business segment since 1996, also rose in the quarter after the automaker landed major defense contracts with the U.S. military and private defense companies.
GM Defense’s existing contract with the government to manufacture infantry squad vehicles was expanded on September 21 to a “cumulative nominal value” of $915,597,166. Lockheed Martin executives confirmed in Dallas on September 17 that they had accepted the first delivery of critical components produced by GM Defense after signing an agreement a few weeks earlier.
GM’s third quarter results compared to last year’s quarter
- Net income of $3.3 billion, up 151% from net income of $1.32 billion.
- Total revenue of $50.02 billion, up 2.9% from $48.59 billion.
- Full year financial forecast Adjusted earnings before interest and taxes rose to a range of $14.5 billion to $15 billion, a narrower target from previous guidance of $14 billion to $15.5 billion.
- United States sales fell 5.5% to 670,974 vehicles sold in the second quarter, compared to 710,347 vehicles sold.
- Profit before profit and tax (EBIT) of $4.12 billion, up 22% from $3.38 billion.
Ford Motor Co. and Stellantis are expected to report results on October 28.
Glossary of terms:
- Net Income: The amount of money a business has left after paying all expenses related to operating its business.
- Net loss: The amount of money a business owes when its expenses exceed revenues for the quarter or year.
- Revenue: How much money a business generated during the designated period before expenses such as operating costs or taxes.
- Market value: the value a company share is worth at the close of the market on a given day.
- Earnings Before Interest and Taxes: The metric companies prefer to use because it doesn’t take into account losses incurred during the quarter, so it tends to be higher and presents the company in a more favorable light.
Jackie Charniga covers General Motors for the Free Press. Contact her at jcharniga@freepress.com.
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