GM raises profit forecasts

General Motors has increased some of its annual financial projections after reporting stronger-than-expected results in the third quarter of 2026, though it also warned about rising supply costs. The company's CEO, Mary Barra, wrote to shareholders that GM is doing well and is working to keep this performance going despite inflation by investing in new products, improving quality, and increasing efficiency.

Rising costs challenge GM

Paul Jacobson, GM’s chief financial officer, said that the company has faced additional costs of about 400 million dollars in the last two months, mainly because of higher prices for steel and aluminum, as well as increased logistics expenses. These factors are putting pressure on GM’s bottom line despite improved sales performance.

Strong financial results reported

GM’s revenue for the third quarter of 2026 reached 50.01 billion dollars, a 2.9 percent increase compared to the same period last year. The company’s net profit more than doubled to 3.3 billion dollars, up from 1.3 billion dollars during the same quarter in the previous year. However, GM had previously recorded a 1.6 billion dollar charge related to restructuring its electric vehicle division.

Revised annual targets

In response to these results, GM has adjusted several of its annual financial targets. The company now expects net profit to range between 8.9 and 9.5 billion dollars, up from a previous range of 8.4 to 9.8 billion dollars. It also raised its forecast for net profit per share and cash generated by automotive operations, reflecting improved performance and confidence in future results.

North American performance improves

GM noted a 2.5 percentage point increase in its North American operating margin, reaching 8.7 percent, driven by strong sales volumes, a favorable product mix, and quality improvements. The company’s small SUVs, which are priced under 30,000 dollars, also saw their best quarterly sales, with a 27 percent increase in units sold.

Overall sales decline due to comparison

Despite the improvements in certain areas, GM’s total sales for the third quarter of 2026 fell by 5.5 percent, with 670,974 new vehicles sold. This decline is partly due to a tough comparison with the third quarter of 2025, when customers rushed to buy electric vehicles before a federal tax credit of 7,500 dollars expired under former President Donald Trump.

New share buyback plan approved

GM’s board of directors approved a new multi-year share buyback program worth 20 billion dollars, following the completion of a previous 6 billion dollar plan. This brings the total buyback authorization to 42.7 billion dollars. Paul Jacobson explained that the buybacks aim to increase value for shareholders, as the number of shares in circulation has dropped by 45 percent since 2015.