General Motors net income rose to $3.3 billion in the third quarter as warranty costs fell
Revenue grew 2.9% to $50.0 billion and net income reached $3.3 billion, up from $1.3 billion a year earlier. The company said lower warranty costs helped, and it bought back $2.5 billion of stock.
Revenue
$50.0B
↑ 2.9% vs Q3 FY2025
Operating margin
7.2%
↑ 5.0 pts vs 2.2%
Net income
$3.3B
↑ 151.3% vs $1.3B
Free cash flow
$5.0B
0.1% vs $5.0B
Share buybacks
$2.5B
↑ 66.7% vs $1.5B
General Motors' revenue grew 2.9% to $50.0 billion in the third quarter, and net income rose to $3.3 billion from $1.3 billion a year earlier. Operating margin widened to 7.2%. The company said lower warranty costs and smaller charges on electric vehicles (EVs) drove much of the change.
Revenue grew slowly, helped by higher volume
Revenue in the quarter was $50.0 billion, up 2.9% from $48.6 billion in the third quarter of 2025. Revenue for the first nine months was $141.7 billion, up 1.4% on the same period of 2025.
In its 10-Q the company said higher wholesale volumes of full-size pickup trucks and crossover vehicles in North America raised revenue, partly offset by an unfavorable mix and by price changes linked to the timing of model year introductions. Revenue from GM International also rose on higher volumes.
Operating margin recovered from a weak year-ago quarter
Operating income was $3.6 billion, against $1.1 billion a year earlier. That put operating margin at 7.2%, compared with 2.2%. Net income of $3.3 billion was 6.7% of revenue, and diluted earnings per share were $3.73, against $1.35.
The 10-Q gives the reasons for lower costs. Warranty-related costs were lower by $0.9 billion, and charges related to the EV strategic realignment were smaller by $1.5 billion. The company also listed lower earnings from its Ultium Cells joint venture and higher manufacturing and engineering costs as partial offsets.
Income tax expense was $565 million, an effective rate of 14.3% of pre-tax income. A year earlier it was 8.9%.
Cash flow held steady and buybacks grew
Cash from operations was $7.3 billion, up 3.0%. Capital spending rose 10.1% to $2.3 billion. Free cash flow, which is cash from operations minus capital spending, was $5.0 billion, almost the same as the $5.0 billion of a year earlier. For the first nine months it was $10.8 billion, against $14.0 billion.
GM spent $2.5 billion on share buybacks and $215 million on dividends. Diluted shares were 887 million, down 8.0% from 964 million a year earlier. Cash and cash equivalents ended the quarter at $27.8 billion. In its earnings release the company said its Board of Directors "has approved a new $20.0 billion multi-year share repurchase authorization".
In the same release, the company said it was updating its full-year 2026 EBIT-adjusted guidance and narrowing the range. This report does not forecast results.
Operating income, net income and free cash flow are as the site defines them for all companies: free cash flow is cash from operations minus capital spending. Net income is the amount attributable to stockholders. Total debt is reported only for fiscal year ends in the company's data, so it is not shown. Cash from operations and capital spending include GM Financial.
Sources: Form 10-Q (SEC EDGAR) · Form 10-Q filing index · EDGAR company facts for General Motors · General Motors third-quarter 2026 earnings release (Exhibit 99.1). More figures for General Motors are on its company page.
Twelve quarters of figures
| Quarter | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $43.0B | $43.0B | $48.0B | $48.8B | $47.7B | $44.0B | $47.1B | $48.6B | $45.3B | $43.6B | $48.0B | $50.0B |
| Revenue growth | −0.3% | 7.6% | 7.2% | 10.5% | 11.0% | 2.3% | −1.8% | −0.3% | −5.1% | −0.9% | 1.9% | 2.9% |
| Operating margin | 2.1% | 8.7% | 8.1% | 7.5% | 3.2% | 7.6% | 4.5% | 2.2% | −8.1% | 6.7% | 3.0% | 7.2% |
| Net income | $2.1B | $3.0B | $2.9B | $3.1B | −$3.0B | $2.8B | $1.9B | $1.3B | −$3.3B | $2.6B | $1.3B | $3.3B |
| Diluted EPS | $1.60 | $2.56 | $2.55 | $2.68 | −$1.40 | $3.35 | $1.91 | $1.35 | −$3.37 | $2.82 | $1.41 | $3.73 |
| Cash from operations | $3.7B | $3.2B | $6.0B | $6.9B | $4.1B | $6.1B | $6.9B | $7.1B | $6.8B | $3.0B | $6.4B | $7.3B |
| Capital expenditure | $3.7B | $2.8B | $2.6B | $2.2B | $3.2B | $1.8B | $2.1B | $2.1B | $3.2B | $1.5B | $1.9B | $2.3B |
| Free cash flow | −$49.0M | $369M | $3.4B | $4.6B | $907M | $4.2B | $4.8B | $5.0B | $3.6B | $1.4B | $4.4B | $5.0B |
| Dividends and buybacks | $10.1B | $478M | $1.2B | $1.2B | $4.8B | $2.2B | $144M | $1.7B | $2.6B | $1.0B | $2.6B | $2.7B |
This story describes figures the company has published. It is for information only and is not investment advice or a recommendation to buy, sell or hold any security. Check the original filings before relying on any figure. Stoqly is not affiliated with the SEC or General Motors.
