General Motors’ net income more than doubled in the third quarter compared with the same quarter in 2025 thanks to fewer special charges including altering production volumes and locations of its vehicles, tariff charges and settling supplier contracts that previously impacted the company.
Though the company had lower year over year sales, GM said third quarter 2026 saw its most popular vehicles – full-size pickup trucks – had the highest sales ever, driven by consumer demand, and also recorded its best total fleet sales calendar year to date since 2019.
The Detroit automaker, which reported earnings for the quarter ending Sept. 30 on Oct. 20, said net income of $3.3 billion rose 151% compared with a net income of $1.32 billion in the same quarter in 2025.
GM attributed the solid third quarter 2026 results to spending discipline, strong pricing strategies and growing business outside traditional auto sales.
GM also announced a $20 billion multiyear share repurchase authorization in its earnings disclosure, a move that CEO Mary Barra said in a letter to shareholders “further demonstrates our board’s commitment to creating even greater shareholder value.”
Electric vehicle production changes roiled last year’s third quarter net income, which had fallen 57% in that quarter compared with the same quarter in 2024. Contractual obligations to suppliers amid a smaller-than-expected electric vehicle market impacted earnings across several quarters in 2025 and early 2026.
GM has recorded $11.2 billion of EV-related charges since it began restructuring electric vehicle operations in the second half of 2025. Of that, the automaker said $7.4 billion had a cash impact on the company’s earnings. Through the end of third quarter 2026, GM said it paid $4.6 billion of that $7.4 billion and expects to pay another $1 billion in cash next quarter. The rest, it said, it will pay in 2027.
GM repurchased $2.5 billion of its stock in the third quarter, retiring 29 million shares and distributed $200 million in dividends.
GM also altered its full-year projected pretax estimates for the third time in 2026, narrowing the scope slightly of what it plans to make this year.
GM sold fewer new vehicles than it did in the year-ago period in the United States, citing a smaller-than-anticipated electric vehicle market after the loss of the federal tax credit in 2025 and missing vehicles that the automaker discontinued in its product lineup.
“Trucks will be a big driver of incremental Super Cruise adoption and digital revenue in 2027 as we make the technology standard on high-end Silverado and Sierra trims, and optional on most others,” Barra said in the shareholder letter. “We are expecting Super Cruise penetration in our truck portfolio to grow 4-5x next year.”
Consumers opting for monthly subscriptions to the OnStar suite of products, including the advanced driver assist system Super Cruise, also added to the company’s strong performance in the third quarter. GM reported for the third quarter a deferred revenue increase of about 40% on a year over year basis and said it delivered roughly 83,000 Super Cruise equipped vehicles.
GM Defense, a separate business line since 1996, also grew in the quarter after the automaker landed major defense contracts with the U.S. Army and private defense companies.
GM Defense’s existing contract with the government to make Infantry Squad Vehicles was expanded on Sept. 21 to reach a “cumulative face value” of $915,597,166. Lockheed Martin leaders confirmed in Dallas on Sept. 17 that it accepted first delivery of mission-critical components produced by GM Defense after inking a deal weeks before.
GM’s Q3 results compared with the year-ago quarter
- Net income of $3.3 billion, up 151% compared with a net income of $1.32 billion.
- Total revenues of $50.02 billion, up 2.9% compared with $48.59 billion.
- Full-year financial guidance of adjusted earnings before interest and taxes shifted to a range of $14.5 billion to 15 billion, a more narrow target from previous guidance of 14 billion to 15.5 billion.
- U.S. sales slid 5.5% to 670,974 vehicles sold in the second quarter compared with 710,347 vehicles sold.
- Earnings before income and taxes (EBIT) of $4.12 billion, up 22% compared with $3.38 billion.
Ford Motor Co. and Stellantis are expected to report earnings on Oct. 28.
Glossary of Terms:
- Net income: The amount of money a company has left over after paying all expenses related to operating their business.
- Net loss: The amount of money a company owes when its expenses exceed income for the quarter or year.
- Revenue: How much money a company generated during the designated time before expenses like operating costs or taxes.
- Stock value: The value that one share of stock in the company is worth at the end of market close on a particular day.
- Earnings before interest and taxes: The metric that companies prefer to use because it doesn’t account for losses incurred in the quarter, therefore it tends to be higher and shows the company in a more favorable light.
Jackie Charniga covers General Motors for the Free Press. Reach her at jcharniga@freepress.com.
This article originally appeared on Detroit Free Press: GM's third quarter net income surged 151% even as overall sales dipped
