GM shares rose nearly 15% on earnings beat, raising full-year guidance
GM It reported strong results for the third quarter for 2025 as Wall Street cheered revenues that fell only slightly over the year. The company beat consensus estimates for both revenue and earnings per share (EPS), and its stock rose nearly 15% in same-day trading as traders appeared to breathe a sigh of relief. “In the U.S., we achieved our highest market share in the third quarter since 2017 with strong margins, and our restructured China business was profitable again,” CEO Mary Barra said in a statement. Message to shareholders. “Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory.”
GM reported third-quarter revenue of $48.59 billion, beating analysts’ expectations and only slightly down from $48.76 billion a year earlier. Adjusted EPS came in at $2.80, beating the expected level of $2.31, although it reflected a 5% decline year-over-year.
Even as the automaker beat Wall Street estimates on key metrics, net income saw a sharp year-over-year decline due to major shifts in electric vehicle strategy, ongoing tariff pressures, and targeted production adjustments. The automaker’s net income for the quarter was $1.32 billion, less than half of the previous year’s $3 billion, directly impacted by changes in electric vehicle production, impairment charges related to underutilized assets, and canceled supplier agreements.However, it raised the high end of its full-year net income guidance to $9.5 billion.
Adjusted earnings before interest and taxes (Ebit) totaled $3.38 billion, also down significantly from $4.12 billion a year earlier. GM’s market share reached 8.3% — the highest since 2017 — as quarterly U.S. sales rose 8% to 710,347 units.
I raised guidance
Despite these challenges, GM raised its full-year adjusted earnings guidance to a range of $12 billion to $13 billion, compared to its previous guidance of $10 billion to $12.5 billion. The company now expects adjusted auto free cash flow to reach $10 billion to $11 billion, and adjusted diluted earnings per share are expected to be between $9.75 and $10.50, exceeding spring estimates.
GM attributes these upgrades in part to tariff mitigation strategies; The manufacturer now expects annual tariff costs for 2025 to be between $3.5 billion and $4.5 billion, compared to a spring forecast of $5 billion. Parra expressed his gratitude to President Donald Trump Recent tariff relief efforts have specifically targeted domestic manufacturersincluding new compensation programs for US-made vehicles, which are expected to enhance competitiveness by reducing domestic manufacturing costs. “I also want to thank the President and his team for the important tariff updates they made on Friday. The MSRP compensation program will help make U.S.-produced vehicles more competitive over the next five years, and GM is very well positioned as we invest to increase our already large domestic manufacturing and sourcing footprint.”
The underlying strength stems from strong sales of gas-powered vehicles, including pickups like the Chevrolet Silverado and GMC Yukon all-wheel drive. Meanwhile, incentives remained steady at just 4% of the average deal price, well below the industry average. GM’s electric vehicle division generated a record 66,501 units thanks to federal tax credits, although the company expects sales to decline in the wake of the expiration of the tax credit.
For this story, luck Use generative AI to help with the rough draft. An editor verified the accuracy of the information before publication.
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