General Motors Company ($GM) has experienced a mixed third quarter in 2026, with total vehicle deliveries falling about 6% year over year to roughly 671,000 units. This decline mirrors broader industry trends, including a significant drop in electric vehicle (EV) sales similar to competitors like Ford, whose EV sales plunged sharply due to last year’s unusually high demand driven by expiring federal incentives. Despite the softer EV demand, GM continues to rely on its strong lineup of traditional vehicles, including pickups and SUVs, which remain central to its revenue and profitability.
CEO Mary Barra recently emphasized that while the EV transition is slower and more complex than initially expected, it remains the company’s ultimate goal. GM is maintaining a diverse portfolio that balances electric models with profitable internal combustion vehicles, aiming to meet customers wherever they are in their preferences. Barra also highlighted the importance of agility in responding to shifting regulatory and market conditions, a strategy that has helped GM’s stock trade near all-time highs and rise nearly 6% year to date.
On the financial front, General Motors is expected to report a 21.8% increase in earnings per share for the current quarter, with consensus estimates projecting continued growth into the next fiscal year. However, some caution surrounds GM’s growth potential, as recent analysis points to modest revenue increases and margin pressures from high input costs. The company’s free cash flow margin stands at 7.8%, reflecting solid cash generation but also raising questions about capital allocation efficiency compared to smaller, more nimble competitors.
Trade policies under the current president have had a nuanced impact on GM and the broader U.S. auto industry. While tariffs and shifting regulations have encouraged some production to move back to U.S. plants, uncertainty around trade agreements like USMCA and fluctuating incentives have created challenges for suppliers and investment decisions. GM’s planned $4 billion investments in U.S. facilities are expected to support production growth around 2030, signaling a long-term commitment to domestic manufacturing despite near-term headwinds.
Did you know?
The stock market has historically rewarded companies that consistently grow earnings, but it’s often the market’s reaction to changes in earnings expectations that drives short-term stock price moves.
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