General Motors' Q3 revenue, adj EPS beat on North America performance

Overview

• US automaker's Q3 revenue rose 2.9% yr/yr, beating analyst expectations

• Q3 adjusted EPS beat analyst expectations, rising 32% yr/yr

Outlook

• GM expects 2026 net income of $8.9 bln to $9.5 bln

• Company raises 2026 adjusted automotive free cash flow forecast to $11.5 bln-$12.5 bln

• GM now sees 2026 EBIT-adjusted at $14.5 bln-$15.5 bln

Result Drivers

• NORTH AMERICA PROFITABILITY - GM reported higher EBIT-adjusted in North America, up 43% yr/yr

• OPERATING CASH FLOW - Automotive operating cash flow increased 33% yr/yr

• FREE CASH FLOW - Adjusted automotive free cash flow rose 40% yr/yr

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy"

• Wall Street's median 12-month price target for General Motors Co is $102.00, about 23.3% above its October 19 closing price of $82.75

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Oct 20 - GM's core profit rises 22% on strength of pickup-truck business

• Oct 19 - Europe EV sales rose 70% in September, almost 30% of market share

• Oct 20 - Volkswagen bet on Xpeng to save its China business. It's not going to plan

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)