GM Slides as CEO Barra Warns of ‘Intensifying’ Challenges

General Motors narrowed its 2026 adjusted earnings before interest and taxes outlook to $14.5 billion to $15.5 billion, from the $14 billion to $16 billion range issued in July. CEO Mary Barra described the challenges facing the company as “intensifying,” while shareholders weighed the reduced range against plans for another $20 billion in stock repurchases.

The change is a tightening of the forecast rather than a move outside the earlier range: the midpoint is lower, but both the previous and current ranges overlap. The market reaction focused on the profit outlook even as GM reiterated a substantial capital-return program.

GM’s older FY 2025 figures provide a separate operating reference point: revenue was $185.0 billion, down 1.3% year over year, with a 1.5% net margin and diluted EPS of $3.27. Those figures are not the 2026 adjusted EBIT forecast, but they show the earnings base against which the new outlook will be assessed.

The immediate tension is between the narrower earnings range and the repurchases. The buyback plan can reduce the share count, but it does not by itself resolve the operating challenges Barra described. The next test is whether GM’s subsequent updates keep 2026 adjusted EBIT within the new range and clarify what is driving the pressure.