General Motors Co. announced a new $20 billion stock repurchase program as the automaker seeks to bolster its share price amid ongoing cost pressures and market skepticism. The board approved the authorization on Tuesday, allowing the company to buy back shares at any time. This latest buyback adds to nearly $30 billion of shares GM has repurchased over the past five years and brings its total share repurchases over the past decade to approximately $43 billion, reducing outstanding common shares by 45%.
Despite a more than 40% increase in its stock price over the past year, GM’s shares have shown little movement in 2026 and continue to trade at a lower price-to-earnings ratio compared with rival Ford. Investors remain cautious, reflecting concerns over the company’s sales volumes and broader economic challenges. GM shares declined nearly 7% on Tuesday following the buyback announcement, as investors were hoping for an upward revision to the company’s full-year earnings outlook. Instead, GM narrowed its guidance for 2026 and forecasted a challenging 2027.
The automaker attributed the revisions to mounting cost pressures spurred by rising commodity prices, elevated logistics expenses, and other inflationary factors. CEO Mary Barra highlighted that commodity inflation, particularly for copper and steel, alongside logistics and semiconductor costs, will create a roughly $2 billion headwind this year. Additionally, GM anticipates spending between $1 billion and $1.5 billion on software development, supply-chain investments, and increasing U.S. production capacity. Barra noted these external challenges are intensifying due in part to ongoing geopolitical tensions, including the war in Iran.
GM reported third-quarter earnings attributable to shareholders of $3.34 billion, or $3.73 per share, compared with $1.33 billion, or $1.35 per share, in the year-ago quarter. Adjusted earnings per share totaled $3.70, slightly exceeding analyst expectations of $3.69. Revenue increased 2.9% to $50.02 billion. However, vehicle sales declined 5.5% in the third quarter amid discontinued models and weaker demand, particularly in the electric vehicle segment.
The automaker is relying on its strategy of focusing production on higher-margin trucks and sport-utility vehicles, which remain popular despite elevated fuel costs and economic uncertainty. GM is investing heavily in expanding production of larger, more expensive models, including new V-8 engines, pickups, and premium Cadillacs. This approach has allowed the company to grow revenue even as overall unit sales have contracted, avoiding discounting strategies to drive volume.
Barra remains confident in GM's long-term prospects, emphasizing the company’s efforts to transition towards advanced technologies such as autonomous driving systems, which GM plans to bring to market by 2028. While the company has scaled back some electric vehicle ambitions following regulatory shifts, it continues to pursue innovation in automated driving and enhanced vehicle capabilities.
In a recent interview, Barra described GM shares as fundamentally undervalued and reaffirmed her commitment to prioritizing shareholder returns throughout her 12-year tenure at the helm. She emphasized the importance of disciplined capital allocation, stating that all spending must generate meaningful returns for investors.