General Motors announced a new $20 billion stock buyback program Tuesday after reporting stronger third-quarter earnings, signaling confidence in its financial position even as investors reacted cautiously to the automaker’s outlook for the remainder of the year.
The Detroit-based company reported $50 billion in revenue for the July-through-September quarter, up approximately 3% from a year earlier. Net income attributable to shareholders reached $3.3 billion, while adjusted operating earnings climbed to $4.1 billion, an increase of nearly 22% compared with the same period last year.
GM’s board approved the $20 billion multiyear share-repurchase authorization after the company completed an earlier $6 billion buyback program announced in January. Share repurchases allow companies to reduce the number of shares available in the market and can increase earnings per share. GM also declared a quarterly dividend of 18 cents per share, payable in December.
Despite the stronger results, GM shares declined Tuesday as investors assessed its updated financial guidance and mounting industry costs. The automaker narrowed its projected 2026 adjusted operating earnings to between $14.5 billion and $15.5 billion. Although the revised range maintained the midpoint of its earlier forecast, it offered limited additional upside following the quarterly earnings report.
Chief Executive Mary Barra highlighted the company’s investment in upcoming Chevrolet, GMC, and Cadillac vehicles, along with its expanding software and services business. GM expects continued pressure from inflation and operating costs, but its latest results underscore the importance of profitable trucks and SUVs as the company balances traditional vehicle production with investments in electric vehicles and new technology.
