Catenaa, Tuesday, October 20, 2026- General Motors (GM) stock fell more than 5% on Tuesday despite the automaker announced a multiyear share repurchase of $20 billion.
According to Yahoo Finance, GM’s board approved a new $20 billion multiyear share repurchase authorization with no expiration date.
“We think this is a proven strategy,” GM CEO Mary Barra wrote in her letter to shareholders, according to Yahoo Finance. “The new $20 billion multiyear share repurchase authorization we announced today further demonstrates our board’s commitment to creating even greater shareholder value.”
Barra also said GM is working to continue its momentum “despite growing inflationary pressures.”
General Motors reported stronger-than-expected third-quarter earnings, with adjusted operating profit increasing nearly 22% to $4.1 billion. Revenue climbed 2.9% to $50 billion, while adjusted earnings reached $3.70 per share, exceeding the Bloomberg consensus estimates cited by Yahoo Finance.
For the full year, according to Yahoo Finance, GM now expects adjusted EBIT of $14.5 billion to $15.5 billion and adjusted EPS of $12.75 to $13.75.
GM stock is down by over 3.7% so far this year.
GM also lifted its adjusted automotive free cash flow forecast to $11.5 billion to $12.5 billion from $9.5 billion to $11.5 billion, Yahoo Finance reported.
Yahoo Finance said this reflects GM’s rising costs. GM now expects commodity inflation of about $2 billion, including logistics and memory chip (DRAM) costs.
GM lowered its estimate of regulatory benefits to about $500 million, down from an earlier expectation of up to $750 million. However, the company expects gross tariff expenses to remain near the lower end of its previously projected $2.5 billion–$3.5 billion range.
Earlier this month, GM reported third-quarter US sales of 670,974 vehicles, down 5.5% from a year ago, as a collapse in EV sales offset gains from its pickups and small SUVs.
Electric vehicle deliveries accounted for less than 4% of GM’s US sales in the third quarter, down from more than 9% a year earlier. EV sales fell about 62%, while deliveries of the company’s remaining vehicles were largely unchanged from the previous year, according to figures analyzed by Yahoo Finance.
Sales of the Chevrolet Equinox EV plunged 92.4% to 1,905, the Blazer EV dropped 84.4%, the GMC Hummer EV slid 72.9%, and the Cadillac Lyriq fell 50.5%.
