General Motors GM is slated to release third-quarter 2026 results tomorrow, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $3.55 and $48.21 billion, respectively.
The earnings estimate for the to-be-reported quarter has moved up by 5 cents over the past seven days. The bottom-line projection indicates a year-over-year increase of 26.7%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year contraction of 0.1%.
For full-year 2026, the Zacks Consensus Estimate for GM’s revenues is pegged at $185.3 billion, suggesting a marginal uptick of 0.1% year over year. The consensus mark for full-year EPS is pegged at $13.54, calling for a 27.7% year-over-year contraction.
Notably, General Motors surpassed earnings estimates in each of the past 16 quarters. And our proven model predicts an earnings beat for the company this time around as well.
General Motors Company Price and EPS Surprise
General Motors Company price-eps-surprise | General Motors Company Quote
Earnings Whispers for GM
The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
General Motors has an Earnings ESP of +1.38% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
General Motors delivered 670,974 vehicles in the third quarter of 2026 in the United States, down 5.5% year over year. Sales declined across Chevrolet, GMC and Cadillac brands but inched up 8% for the Buick brand. Even with weaker third-quarter sales in the United States, General Motors remained the top-selling automaker in the country.
GM’s closest peer Ford’s F U.S. sales fell 6.6% year over year to 509,764 vehicles in the third quarter of 2026. Meanwhile, Toyota’s TM sales in North America were down 0.6% in the third quarter
Our model estimates for General Motors’ GMNA unit revenues (which accounts for the bulk of total revenues) are pegged at $39.4 billion, implying a year-over-year decline of 2.8%. The slowdown could weigh on total revenues, although expanding software and digital services may provide some cushion.Unlike vehicle sales, software revenues carry much higher margins and generate recurring cash flows.
GM’s disciplined pricing strategy is another potential support for profitability. By keeping incentives below the industry average for more than three years, the automaker has avoided aggressive discounting, helping protect margins amid tariff-related costs and inflation. Reflecting this resilience, we expect GM North America’s operating income to total $3.17 billion, implying growth of 26% from the year-ago quarter.
Encouragingly, General Motors has also overhauled operations in China by rightsizing, streamlining dealer networks, cutting costs and rolling out new products. These efforts have paid off, and the company is expected to have witnessed improved profitability in China.
General Motors’ Price Performance & Valuation
Year to date, shares of GM have gained more than 3%, outperforming the industry as well as peers like Toyota and Ford.
YTD Price Comparison
GM also appears undervalued. The company is trading at a forward earnings multiple of 0.39, way lower than the industry.
Our Take: GM Stock Still a Hold
General Motors continues to lead the U.S. market, backed by strong demand for full-size pickups, SUVs and commercial fleet vehicles. Disciplined pricing supports profitability, and the next-generation Chevrolet Silverado and GMC Sierra should further strengthen its competitive position, while restructuring in China is paying off.
Beyond this core, GM is steadily turning its software business into a meaningful profit driver. OnStar subscriptions keep growing, and Super Cruise is reaching more models, with management expecting more than $3 billion of recognized revenues and deferred revenues approaching $7.5 billion in 2026. GM Energy and GM Defense further broaden the company’s earnings base beyond traditional vehicle manufacturing.
These strengths are tempered by near-term cost pressures from commodities, logistics and DRAM components. Management expects commodity inflation, including logistics, of $1.2-$1.7 billion in 2026. Onshoring costs will also rise as production shifts to the United States, with the largest fourth-quarter impact coming from moving Escalade production to the Orion Assembly plant, and together these factors are likely to weigh on margins in the near term.
Even so, GM looks poised to extend its earnings beat streak in third-quarter 2026 and remains well positioned for the long haul. Still, near-term risks keep us from turning more positive, so we maintain a Hold rating. Existing shareholders should stay put, while new investors may wait for a better entry point.
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General Motors Company (GM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).