GM Shares Fall 7.5% Despite $20 Billion Buyback as Cautious Guidance Overshadows Q3 Beat

General Motors shares dropped as much as 7.5% intraday Tuesday, the steepest decline since July 2025, after the automaker's narrowed full-year outlook and warnings of intensifying external challenges offset a third-quarter earnings beat and a new $20 billion share repurchase plan. The stock was down 5.3% at $78.37 by 9:35 a.m. ET. GM reported third-quarter revenue of $50.02 billion and adjusted earnings per share of $3.70, topping LSEG estimates of $48.7 billion and $3.63. Net income attributable to shareholders was about $3.3 billion, up from $1.3 billion a year earlier. Adjusted EBIT was $4.1 billion, including $3.6 billion from North America. The company narrowed its 2026 adjusted EBIT forecast to $14.5 billion-$15.5 billion from $14 billion-$16 billion, keeping the $15 billion midpoint. Its adjusted EPS range of $12.75-$13.75 implies a $13.25 midpoint, below the $13.41 consensus. GM raised its full-year automotive adjusted free cash flow guidance to $11.5 billion-$12.5 billion from $9.5 billion-$11.5 billion. CEO Mary Barra cited declining U.S. and China volumes, with third-quarter China profit down 60% to $32 million. CFO Paul Jacobson said fourth-quarter results will fall sequentially. Barclays analyst Dan Levy said GM's more cautious 2027 language may signal downward earnings revisions.