GM US S&P 500Russell 1000 Earnings call · transcribed from the recording

General Motors (GM) · Q3 2026 results and valuation

Share price: $88.90 · 2026-11-11

General Motors designs, builds, and sells trucks, cars, and SUVs, as well as automobile parts and software-enabled services. The company operates globally, serving both mainstream and luxury markets with various brands and providing automotive financing services. Source: 10-K annual report (2026-01-27)

Results Q3 2026 vs Q2 2026 · previous quarter · published 20 Oct 2026 and 21 Jul 2026

Net income up 146.3% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.

1 · Numbers

+146.3%

Net income vs Q2 2026

Outlook given

Net income 3.33B vs 1.35B

Revenue +4.1%

Against the same quarter last year (Q3 2025) it is +151.3%, so it is not just seasonal.

Why Against the same quarter last year (+151.3%), net income rose because the improvement was driven by core business performance, including a higher mix of full-size pickups and lower warranty expense, partially offset by higher commodity and on-shoring costs.

2 · How management spoke

Restrained

Less upbeat than 76% of company calls

Answers to analysts: typical, in line with the script.

Similar to last call.

3 · What stood out

New multi-year contract awards for GM Defense are expected to drive annual top-line growth of more than 30% with double-digit margins.

Valuation

Is General Motors undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 5.7% growth a year (3-year revenue growth), the model's fair value is $226.08 a share — the stock trades 61% below it. Today's price assumes −1.3% growth a year.

Current price

$88.90

close of 2026-11-11

Market implies growth of i

-1.3% for 10 yrs

Fair value / share

$226.08

Buy below

$169.56

Price vs fair value

Undervalued 61%

Price vs buy-below price

Undervalued 48%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Guidance

GM lowered its adjusted EBIT guidance from a previous range of $14 to $16 billion to a new range of $14.5 to $15.5 billion.
Figure

Through the third quarter, GM reported $12.3 billion in EBIT adjusted, $12.2 billion in adjusted automotive free cash flow, and $10.97 in diluted adjusted EPS, up more than 35% year over year.

Source quote
“This year, through the third quarter, we have delivered $12.3 billion in EBIT adjusted, $12.2 billion in adjusted automotive free cash flow, and $10.97 in EPS diluted adjusted, which is up more than 35% year over year.”
Guidance

Annualized commodity inflation since July is expected to create an additional $1 to $1.5 billion in EBIT-adjusted headwinds, resulting in a total headwind of roughly $2 billion for 2027.

Source quote
“However, if we were to simply annualize the recent incremental commodity inflation since July, it would translate into an additional $1 to $1.5 billion of EBIT-adjusted headwind for 2027, which would result in a total headwind for 2027 of roughly $2 billion.”
Figure

Truck volumes will remain flat from 26 to 27 because the company is currently in the middle of launching six plants.

Source quote
“And so that's why we're saying really the volume is going to be flat from 26 truck volumes to 27 because we're in the middle of that launch of these six plants.”
Guidance

GM expects full-size truck Supercruise penetration to grow four to five times next year due to customer demand and the ability to scale the technology across critical segments.

3 more

Guidance

GM expects headwinds from commodity inflation, logistics, and DRAM costs to be around $2 billion for the full year.
Figure

GM announced a new $20 billion multi-year authorization to demonstrate the board's commitment.

Source quote
“The new $20 billion multi-year authorization we announced today further demonstrates our board's commitment.”
Guidance

GM expects incremental benefits from warranty expense improvements, lower EV losses, growth in software and services revenue, and the launch of next-generation Chevrolet Silverado and GMC Sierra pickups.

Tone

How upbeat the language was, compared with other companiesi. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Restrained (was typical)

Answers to analysts Typical (was upbeat)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“On the cash side, continued strong cash generation supports both our growth-focused investments and ongoing share repurchases, which combine nicely to drive continued EPS growth.”

“Our track record of improved cash flow generation began five years ago, and we have responded by increasing our investment in the business and continually strengthened our balance sheet.”

“Turning to EVs, we remain on track to reduce losses by $1 to $1.5 billion for the full year, driven by right-sizing our EV capacity in significantly lower volumes.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)

Metric	Q3 2026period end 2026-09-30	Q2 2026period end 2026-06-30	Change	Q3 2025	YoY
Revenue	50.02B	48.03B	+4.1%	48.59B	+2.9%
Operating income	3.60B	1.46B	+146.6%	1.08B	+234.4%
Net income	3.33B	1.35B	+146.3%	1.33B	+151.3%
EPS	3.73	1.41	+164.5%	1.35	+176.3%
P/E today 18.9	16.8	34.4	−17.6	11.6	+5.2

Topics

Most discussed now

New ICE volumes were up 8% year over year while EV volumes declined as General Motors lapped the expiration of the consumer...
New General Motors expects modest additional loss reduction in the fourth quarter as it laps the expiration of the consumer purchase…
Its track record of improved cash flow generation began five years ago, and General Motors has responded by increasing its investment...
The improvement was broad-based, but included a higher mix of full-size pickups, lower EV losses from right-sizing General Motors'…
Headwinds from lower truck volumes in the fourth quarter are expected to be largely offset by tailwinds from price in...

Faded since Q2 2026

Dropped General Motors' employees, its dealers, and its suppliers are all making important contributions that continue to drive its success.
Fading A clear reflection of how GM has transformed itself over the past decade by strengthening General Motors' product portfolio to drive...
Fading Paul talked about the fact as General Motors continues to drive cost efficiencies in the technology, it just enables us to...
Fading There's intense pricing competition that frankly, is unsustainable in China in country solutions for the vehicles.

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-29 Director or officer change · SEC 8-K
2026-10-27 Listing notice; Articles or bylaws amended; Regulation FD disclosure · SEC 8-K
General Motors announced it will transfer its common stock listing from the New York Stock Exchange to the Nasdaq Global Select Market on November 17, 2026, while maintaining the ticker symbol "GM".
2026-10-20 Results of operations · SEC 8-K
2026-08-11 Material agreement; New financial obligation; Other events · SEC 8-K
The Company entered into a Master IPU Agreement on August 7, 2026, and will account for the Program as a product financing arrangement with prepayments as assets and IPUs as unsecured debt.
2026-07-21 Results of operations · SEC 8-K
2026-06-04 Director or officer change; Shareholder vote results · SEC 8-K
Shareholders approved Amendment No. 2 to the 2020 Long-Term Incentive Plan, increasing the number of available shares by 27 million and extending the plan's term to June 3, 2036.
2026-05-26 Director or officer change · SEC 8-K
General Motors Company announced that director Jonathan McNeill will not stand for reelection and the Board will reduce its size from 11 to 10 directors.
2026-04-28 Results of operations · SEC 8-K

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-24.

Cash & runway

Cash & equivalents

$23.20B

2026-09-30

Short-term investments

$4.61B

Long-term investments

$244.0M

total liquidity $28.05B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -7.6% YoY, -2.7% QoQ.

Quarter	Shares
Q1 2025	988.0M
Q2 2025	963.0M
Q3 2025	944.0M
Q1 2026	911.0M
Q2 2026	896.0M
Q3 2026	872.0M

Shares outstanding: 843.5M (2026-10-09)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. 40 filings parsed.

Sold by insiders

2.1M shares

$167.6M · 37 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

2026

lead the industry in full-size pickup sales

Source quote
“This leaves us on track to lead the industry in full-size pickup sales in 2026 for the seventh consecutive year.”
late fourth quarter

deliveries of our all-new light-duty trucks

Source quote
“and with deliveries of our all-new light-duty trucks expected to begin in the late fourth quarter, we plan to carry this momentum into 2027.”
over the coming months and quarters

production ramp up to more normalized levels

Source quote
“To ensure a high-quality launch, production will start at measured pace and ramp up over the coming months and quarters to more normalized levels.”
mid-December

four down weeks at Fort Wayne

Source quote
“At Fort Wayne, we are planning four down weeks beginning in mid-December with production scheduled to restart in January.”
fourth quarter

pay another roughly $1 billion in supplier EV settlement payments

Source quote
“We expect to pay another roughly $1 billion in the fourth quarter and the remainder in calendar year 2027.”