General Motors posts record Q3 revenue and EPS beat, shares slide on guidance and cost outlook
General Motors reported adjusted earnings of $3.70 per share and record revenue of $50.02 billion for the third quarter, beating consensus estimates. The stock fell about 8% after the company narrowed its full‑year EBIT guidance and warned of $1‑$1.5 billion of cost pressure that could create a $2 billion head‑wind in 2027. Analysts trimmed price targets while maintaining buy ratings, citing the guidance downgrade and concentrated North American profit.
Why it matters
The share‑price decline reflects investor concern over the narrowed EBIT outlook and rising cost pressures, which could affect GM’s profitability through 2027 (). The guidance cut also lowered expectations for future earnings growth, prompting analysts to reduce target prices ().
Key facts
- 1Adjusted earnings per share were $3.70, beating estimates by $0.07. gurufocus.com
- 2Quarterly revenue was $50.02 billion, a 2.9% year‑over‑year increase. gurufocus.com
- 3Full‑year EBIT guidance was narrowed to a range of $14.5 billion to $15.5 billion. investing.com
- 4The company cited $1 billion to $1.5 billion of cost pressure that could create a roughly $2 billion year‑over‑year head‑wind into 2027. investing.com
- 5Forward price‑to‑earnings ratio is 5.4×. investing.com
- 6GM has a $20 billion share‑buyback authorization, about 31% of its market capitalisation. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.