General Motors narrowed its 2026 earnings guidance and lifted its free cash flow projections after surpassing Wall Street's third-quarter expectations. GM shares fell about 7% after earnings result.

The Detroit automaker also unveiled a new multiyear stock buyback worth $20 billion following the completion of a $6 billion share repurchase program it had announced in January. GM did not specify a timeline for completing the new program.

Here is how GM performed in the third quarter compared with average estimates compiled by LSEG:

Earnings per share: $3.70 adjusted versus $3.63 expected

Revenue: $50.02 billion versus $48.7 billion expected

The updated guidance includes adjusted earnings before interest and taxes of between $14.5 billion and $15.5 billion, or $12.75 to $13.75 adjusted earnings per share, along with adjusted automotive free cash flow of between $11.5 billion and $12.5 billion.

That compares with its raised guidance from July, which included adjusted EBIT of between $14 billion and $16 billion, or $12 to $14 adjusted EPS, and adjusted automotive free cash flow of $9.5 billion to $11.5 billion.

GM stock fell roughly 5% during premarket trading despite the earnings beats.

Wall Street analysts were divided before the report on whether GM would raise its guidance Tuesday amid concerns over slowing sales and rising commodity costs.

GM said Tuesday it expects commodity inflation costs to be around $2 billion, which was the high end of its previous guidance. That includes higher costs for logistics and dynamic random-access memory, or DRAM, chips that are affecting multiple industries.

While the inflationary costs were at the automaker's high end of guidance, GM said its gross tariff costs are expected to be at the low end of its anticipated $2.5 billion to $3.5 billion range. Warranty costs are expected to be at the high end between $1 billion and $1.5 billion, GM said.

"GM is performing well, and we are working hard to continue our momentum despite growing inflationary pressures through strategic investments in new products and services, and through improved quality and operating efficiency," GM CEO Mary Barra said Tuesday in a letter to shareholders.

The automaker also said the costs of its pullback in all-electric vehicles announced last year were "substantially completed," noting it has recorded $11.2 billion in such charges since the second half of last year, including paying $4.6 billion of $7.4 billion in cash through the third quarter.

The company's net income attributed to stockholders was $3.3 billion during the third quarter, up roughly $2 billion from a year earlier.

GM's North American operations continued to lead the automaker's results, accounting for $3.6 billion of its $4.1 billion in adjusted EBIT results during the third quarter.

GM's 2025 third-quarter results included $48.59 billion in revenue, net income attributable to stockholders of $1.3 billion and earnings per share of $2.80 adjusted.