GM Stock's Worst Week Since 2023: A Beat, a $20 Billion Buyback

General Motors beat third-quarter estimates on both revenue and profit, raised its automotive free-cash-flow outlook, and approved a new $20 billion share buyback — and its stock still fell about 10% this week, its worst week since 2023. That split between the numbers GM reported and the price investors paid is the whole story, and it is why GM became one of the most talked-about stocks on Wall Street heading into the weekend.

What happened to GM stock this week?

GM shares fell 9.6% this week, according to Bloomberg, leading a wider selloff in automotive stocks on Friday. Most of the damage came on Tuesday, when the stock dropped 6.8% in its worst single session since July 2025 after the company reported third-quarter results and narrowed its full-year guidance. Shares slipped again on Friday alongside car-parts makers, closing at $75.92 on October 23, down 1.67% on the day, according to Finnhub market data. The stock is now down year to date and roughly 18% below its late-July peak of $91.85.

The quarter itself was strong

On the reported numbers, there was little to sell. Revenue rose 2.9% to $50.02 billion, ahead of a roughly $48.7 billion estimate. Adjusted earnings per share came in at $3.70, topping the $3.63 consensus, and adjusted EBIT rose 22% year over year to $4.1 billion. GM's North American operations drove the beat, helped by about $600 million in cost improvements and about $400 million in volume contributions, according to Deutsche Bank's review of the quarter. It was GM's third consecutive quarter of results ahead of consensus EBIT expectations.

Why did investors sell a beat?

Investors looked past the quarter to the outlook. GM narrowed — effectively trimming the top end of — its full-year 2026 guidance: adjusted EBIT is now expected at $14.5 billion to $15.5 billion, from $14 billion to $16 billion previously, and adjusted EPS at $12.75 to $13.75, from $12 to $14. Chief Executive Mary Barra warned that GM faces "clear external headwinds." Chief Financial Officer Paul Jacobson flagged roughly $2 billion of additional commodity costs in 2027 if recent inflation persists, and a fourth-quarter production downshift as plants change over to newer models — including about 35,000 fewer full-size pickups expected in the quarter versus a year earlier, a four-week shutdown already taken at the Silao plant in Mexico, and a planned mid-December stop at Fort Wayne. In short: the market priced 2027 costs and near-term truck volume, not third-quarter execution.

Why it's blowing up

The contrast is what made the move viral in market coverage. A $20 billion buyback is enormous — Deutsche Bank noted it represents about 30% of GM's market value, which was about $64.2 billion at Friday's close — yet it could not hold the stock. Bloomberg, TheStreet, Morningstar and weekly market roundups all led with the same puzzle this weekend: a beat, a buyback, and the worst week since the Silicon Valley Bank turmoil of March 2023, depending on the weekly measure used. Auto suppliers were dragged along: Gentex and Autoliv also fell on Friday after reporting results, and analysts pointed to cost headwinds being called out across the sector this earnings season.

What are analysts saying?

Strikingly, Wall Street is not joining the sellers. Bloomberg reported that none of the analysts it tracks currently recommends selling GM, after Wells Fargo dropped coverage last month amid an analyst departure. StoneX analyst Mickey Legg called the reaction a buying opportunity, arguing that "most of what spooked the market is timing rather than earnings power." RBC, BNP Paribas and Evercore ISI also told clients to buy the dip, with BNP citing a "severely discounted valuation." Several firms did trim targets while keeping bullish ratings: Morgan Stanley cut its target to $95 from $101, Barclays to $105 from $110, UBS to $109 from $112, and Deutsche Bank to $98 from $101, while TD Cowen kept its $132 target. That is analysis and opinion reported here, not a recommendation — this post does not tell anyone to buy, sell or hold any stock.

What's next

The next tests are concrete: whether fourth-quarter truck production follows the reduced plan Jacobson outlined, whether commodity inflation keeps building toward that roughly $2 billion 2027 figure, and whether the buyback's pace shows up in a shrinking share count in coming reports. GM's week is also a template for this earnings season — across autos, strong reported quarters are being judged almost entirely on 2027 cost outlooks.

Key facts

Weekly move: Down about 9.6% to 10%, GM's worst week since 2023
Tuesday move: Down 6.8%, worst session since July 2025
Q3 revenue: $50.02 billion, up 2.9%, ahead of estimates
Q3 adjusted EPS: $3.70, above the $3.63 consensus
New guidance: Adjusted EBIT $14.5–$15.5 billion; adjusted EPS $12.75–$13.75
Buyback: New $20 billion authorization approved Tuesday
Friday close: $75.92 on October 23, 2026 (Finnhub); 52-week range $62.36–$91.85

Sources

FAQ

Why did GM stock fall after beating earnings?
GM narrowed the top end of its full-year guidance, warned of about $2 billion in possible 2027 commodity costs, and planned fewer fourth-quarter truck sales — investors priced the outlook, not the strong third quarter.

How much did GM stock fall this week?
About 9.6% to 10% for the week, its worst weekly drop since 2023, including a 6.8% fall on Tuesday, October 20.

What is GM's $20 billion buyback?
GM's board approved a new $20 billion share repurchase authorization on Tuesday — roughly 30% of the company's roughly $64 billion market value — but it did not stop the selloff.

Are analysts telling investors to sell GM?
No — Bloomberg reported no sell ratings among the analysts it tracks, and several firms kept buy-equivalent ratings while trimming price targets; that is reported analyst opinion, not advice in this post.

GM Stock's Worst Week Since 2023: A Beat, a $20 Billion Buyback — and a 10% Drop