General Motors stock falls seven percent after narrowing profit guidance

General Motors shares fell about 7% on October 20, 2026, after the company published its third-quarter results. The numbers were actually strong. Revenue reached $50 billion, up 3% from a year earlier, and profit per share rose 32% to $3.70. Both figures beat what analysts had expected.

So why did the share price drop? Investors were worried about GM's updated profit forecast for the full year. The company narrowed its expected earnings range, which suggested less room for growth than before. Analysts also pointed to rising costs, trade tariffs, and challenges with launching new electric vehicles.

GM did announce a $20 billion plan to buy back its own shares. Most analysts still rate the stock a "Buy" and see significant upside over the next twelve months.