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GM's $20 Billion Buyback Can't Hide a Tighter Outlook as RTX, GE Aerospace and Northrop Raise Guidance

Tuesday morning's earnings were a showcase for aerospace and defense: RTX, GE Aerospace and Northrop Grumman all raised their 2026 outlooks, and 3M and Halliburton beat. General Motors topped estimates and announced a $20 billion buyback, but narrowed its profit range and fell before the bell. Netflix and SpaceX report after the close.

EarningsBy · Markets EditorUpdated 4 min read

Tuesday, October 20, 2026, brought one of the busiest mornings of the third-quarter reporting season, and the results split neatly along industry lines. Aerospace and defense companies beat and raised. An automaker beat and still fell. And all of it landed on a morning when the AI trade was cracking again in premarket trading, which made the industrial prints the main reason the Dow was holding up while Nasdaq futures slid. (See our market overview for October 20.)

General Motors: a beat, a buyback and a narrower range

GM reported third-quarter revenue of $50.0 billion, net income attributable to stockholders of $3.3 billion and EBIT-adjusted of $4.1 billion, according to its earnings release. Against LSEG estimates compiled by CNBC, adjusted EPS of $3.70 beat the $3.63 expected, and revenue of $50.02 billion beat $48.7 billion.

The board approved a new $20 billion multiyear share repurchase authorization with no expiration date after GM completed the $6 billion program it announced in January, and it declared a $0.18 quarterly dividend. GM had 849 million shares outstanding at September 30, down from 904 million at the end of 2025 and 1.2 billion at the end of 2023.

The problem was guidance. GM narrowed its 2026 EBIT-adjusted range to $14.5 billion to $15.5 billion from $14.0 billion to $16.0 billion, and adjusted EPS to $12.75 to $13.75 from $12.00 to $14.00. As Yahoo Finance pointed out, the midpoints didn't move, so GM trimmed the upside as much as the downside. The real raise was cash: adjusted automotive free cash flow is now expected at $11.5 billion to $12.5 billion, up from $9.5 billion to $11.5 billion. GM also now expects commodity inflation of about $2 billion, the top of its prior range, including logistics and memory-chip costs, per Yahoo Finance. The shares fell about 6.3% before the bell, according to Investing.com.

RTX: double-digit growth and a record backlog

RTX reported sales of $25.0 billion, up 11% from a year earlier, and adjusted EPS of $2.26, according to its results release. Investing.com put consensus at $1.78 for EPS and $24.09 billion for revenue, and noted that a $0.25-per-share contribution from IEEPA tariff cost recovery helped the quarter. Backlog reached a record $340 billion on more than $81 billion of new awards.

RTX raised its 2026 outlook to adjusted sales of $97.0 billion to $97.5 billion and adjusted EPS of $7.65 to $7.75, per its 8-K filing. Shares rose about 2.2% premarket.

GE Aerospace: orders up 49%

GE Aerospace reported total orders of $19.0 billion, up 49%, GAAP revenue of $14.1 billion, up 16%, and adjusted revenue of $13.3 billion, up 18%. Operating profit rose 30% to $3.0 billion with a 22.5% margin, and adjusted EPS rose 36% to $2.25. Free cash flow fell 14% to $2.0 billion.

CEO H. Lawrence Culp Jr. said the company is "raising our 2026 guidance across the board" and now expects 2027 commercial services to grow low double digits, supported by a commercial services backlog of more than $170 billion. Even so, Investing.com's premarket roundup listed GE among the stocks slipping before the open, a sign of how much good news was already priced in.

Northrop Grumman: backlog climbs to $110 billion

Northrop Grumman said sales rose 7% to $11.1 billion and diluted EPS was $7.89, compared with $7.67 a year earlier. A 1.5 book-to-bill ratio on $16 billion of net awards lifted backlog to a record $110 billion. The company raised its 2026 MTM-adjusted EPS guidance by $0.70 at the midpoint and segment operating income guidance by $65 million. Operating margin slipped to 11.4% from 11.9%, mainly on a smaller pension accounting adjustment.

3M and Halliburton: steady beats

3M reported sales of $6.6 billion with organic growth of 3.3%, adjusted EPS of $2.50, up 12%, and an adjusted operating margin of 26.2%. It raised 2026 adjusted EPS guidance to $9.10 to $9.15. Separately, 3M issued a warrant to an Amazon subsidiary for more than $521 million of its stock as part of an expanded commercial relationship, per Investing.com.

Halliburton posted revenue of $5.7 billion and adjusted EPS of $0.60, both ahead of forecasts of $5.58 billion and $0.58, according to Investing.com, and the stock rose about 3.4% premarket. International revenue rose 3% from the prior quarter, led by an 8% gain in the Middle East and Asia, while North America fell 5%, according to 24/7 Wall St. Management projected roughly 15% operating margins for 2027 even without a North American fracking recovery.

Where Loomi fits

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After the close: Netflix and SpaceX

Netflix reports after Tuesday's close. Analysts expect revenue of about $12.87 billion and EPS near $0.82, according to MarketWatch and other previews, and CNBC said LSEG expects roughly 40% earnings growth. The stock is down about 25% in 2026, per Yahoo Finance, and has traded lower after each of its last five reports, according to CNBC. Investors will focus on engagement, ad revenue and the outlook after recent leadership changes and job cuts.

SpaceX also reports after the bell, only its second report as a listed company. Its shares are trading above the $135 IPO price but below their post-debut peaks, per CNBC. With Tesla and Meta on deck Wednesday, the next 36 hours will test whether the AI selloff is about spending or about financing.

— Rowan Ellery, Markets Editor, Loomi.Ai. Questions or corrections? See our research methodology.

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FAQ

Why did GM stock fall after beating Q3 2026 estimates?

GM beat on adjusted EPS ($3.70 vs. $3.63 expected by LSEG) and revenue ($50.02 billion vs. $48.7 billion) and announced a new $20 billion buyback, but it narrowed its 2026 EBIT-adjusted range to $14.5–$15.5 billion from $14.0–$16.0 billion without raising the midpoint. Shares fell about 6.3% premarket.

Did RTX raise its 2026 guidance?

Yes. After third-quarter sales of $25.0 billion and adjusted EPS of $2.26, RTX raised its 2026 outlook to adjusted sales of $97.0–$97.5 billion and adjusted EPS of $7.65–$7.75. Backlog reached a record $340 billion.

When do Netflix and SpaceX report Q3 2026 earnings?

Both report after the market close on Tuesday, October 20, 2026. Analysts expect Netflix revenue of about $12.87 billion and EPS near $0.82. Tesla and Meta report on Wednesday, October 21.

Loomi.Ai provides educational market research, not financial advice. Nothing here is a recommendation to buy or sell any security. Trading stocks, futures and options involves substantial risk of loss. Estimates and schedules cited were current at publication and can change.

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