General Motors Q3 Preview: Can Detroit's Beat Machine Keep Rolling?

Benzinga Earnings10-16 23:43

General Motors Co. (NYSE:GM) heads into its third-quarter report on a string of earnings beats. The Detroit automaker reports before the opening bell on Tuesday, Oct. 20, with a conference call set for 8:30 a.m. ET.

Analysts expect adjusted earnings of $3.60 per share, up from $2.80 a year earlier, according to Benzinga Pro. Revenue is forecast at $48.6 billion, nearly flat with $48.59 billion in the year-ago quarter.

  • GM stock is climbing Friday. See the real-time price action here. 

A 12-Quarter Beat Streak

GM has topped EPS estimates in each of the last 12 quarters, dating back to the third quarter of 2023, according to Benzinga Pro. Second-quarter adjusted EPS came in at $3.57, ahead of the $3.20 consensus., and first-quarter EPS of $3.70 blew past the $2.62 estimate.

Revenue has been nearly as reliable. GM beat top-line estimates in 11 of those 12 quarters. The lone miss came in the fourth quarter of 2025, when sales of $45.29 billion fell short of the $45.80 billion forecast. Second-quarter revenue of $48.03 billion topped expectations of $47.01 billion.

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Guidance in Focus

The full-year outlook may matter more than the quarter. In July, GM raised its 2026 adjusted EPS guidance to a range of $12 to $14, up from $11.50 to $13.50. Consensus stood at $12.77 at the time.

Any change to that range on Tuesday could move the stock more than the quarterly numbers.

Softer Sales, EV Questions

Volume could test the beat streak. GM said on Oct. 1 it sold 670,974 vehicles in the U.S. in the third quarter, a 6% decline.

Electric vehicles remain a pressure point. After the second-quarter report, CEO Mary Barra called China’s EV price war unsustainable as GM absorbed nearly $11 billion in EV-related charges. Any new write-downs or changes to EV production plans will draw scrutiny.

Software is a brighter spot. GM’s deferred revenue balance has grown to $6.3 billion, driven by OnStar and Super Cruise subscriptions.

Last year’s third quarter set a high bar for the stock. GM shares jumped 14% after the company beat estimates and raised its forecast, Reuters reported at the time. The automaker also took a $1.6 billion charge in the period tied to changes in its EV strategy.

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Analysts Lean Bullish

Wall Street remains largely positive on the stock. Of 21 analysts tracked by Benzinga, 18 rate GM a Buy or Strong Buy. One has a Hold, and two rate it a Sell. The average price target of $97 implies about 14.5% upside.

Targets moved in both directions this month:

  • JPMorgan analyst Rajat Gupta maintained an Overweight rating and cut the price target from $120 to $110 on Oct. 12.
  • RBC Capital analyst Tom Narayan maintained an Outperform rating and raised the price target from $100 to $102 on Oct. 12.
  • UBS analyst Joseph Spak maintained a Buy rating and lowered the price target from $114 to $112 on Oct. 7.
  • Goldman Sachs analyst Mark Delaney maintained a Buy rating and raised the price target from $103 to $112 on Oct. 6. 
  • Wells Fargo analyst Colin Langan remains the bear. He holds an Underweight rating with a $61 target, more than 25% below the current share price.

GM Stock Price Activity: General Motors shares were up 2.03% at $85.36 at the time of publication Friday, according to data from Benzinga Pro.

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