General Motors shares were the weakest performer in the S&P 500 on Tuesday after the automaker reported third-quarter results. Revenue and adjusted earnings per share came in slightly above analyst expectations, but rising costs, a revised full-year outlook and a new share-repurchase plan kept the market response cautious.
Revenue rises 2.9% to $50.015 billion
General Motors reported third-quarter sales of $50.015 billion, up 2.9% from a year earlier and above the $48.783 billion average analyst estimate in a FactSet survey. Adjusted earnings per share rose 32% to $3.70, exceeding the average estimate by 1 cent.
The figures showed that both quarterly revenue and profit modestly beat expectations. Investors, however, also had to weigh mounting cost pressures and the change in the company’s full-year earnings range, limiting the impact of the quarterly beat on the stock.
Full-year EPS range becomes narrower
GM now expects full-year adjusted earnings per share of $12.75 to $13.75, replacing its previous forecast of $12 to $14. Both ends of the new range are above the earlier forecast, but the range is materially narrower, reflecting a more concentrated view of the company’s expected performance.
Chief Executive Mary Barra said on the analyst call that GM continued to perform well despite inflationary pressure, with digital products serving as an important growth driver. OnStar connected services have added about 1 million subscribers so far this year, while revenue recognized from the Super Cruise hands-free driving system increased about 60% year over year in the third quarter.
Barra also said external headwinds were clear and that some pressures were intensifying. She described the path ahead as more challenging, while adding that GM still expects 2027 to be a strong year and potentially better than 2026 if customer demand remains firm and pressure from commodities, logistics and other recent costs eases.
Commodities and supply-chain costs seen rising by about $2 billion
Chief Financial Officer Paul Jacobson told analysts that GM expects annual costs tied to commodities such as steel and copper, logistics and memory chips to increase by about $2 billion. Raw-material and supply-chain expenses are therefore central to how investors assess the company’s earnings outlook and its ability to sustain margins if demand changes.
GM also announced a new $20 billion share-repurchase program. The company already had a $6 billion buyback authorization, but the available information does not state whether that program has been completed or provide a specific timetable for the new plan.
Buyback fails to shift focus from the outlook
The new authorization signals that GM plans to return capital to shareholders, but the company did not disclose an execution period or detailed arrangements. At the same time, the narrower earnings guidance and roughly $2 billion in additional costs leave investors weighing quarterly results, future profit expectations and capital allocation together.
GM’s third-quarter results therefore remained slightly ahead of expectations without removing concerns about operating costs and the earnings outlook. The shares’ position as the S&P 500’s biggest decliner on Tuesday reflected a reassessment of the conditions supporting future profits beyond the headline quarterly figures.