General Motors reported robust third-quarter results for 2025 as Wall Street cheered revenue that decreased only slightly year over ear. The company beat consensus estimates for both revenue and earnings per share (EPS), and its stock soared nearly 15% in same-day trading as traders seemed to breathe a sigh of relief. “In the U.S., we achieved our highest third-quarter market share since 2017 with strong margins, and our restructured China business was profitable once again,” CEO Mary Barra said in a letter to shareholders. “Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory.”
GM posted third-quarter revenue of $48.59 billion, beating out analyst expectations and marking only a slight decrease from the prior year’s $48.76 billion. Adjusted earnings per share reached $2.80, topping the anticipated $2.31 even as it reflected a 5% year-over-year decline.
Even as the automaker surpassed Wall Street’s estimates on key metrics, net income saw a sharp year-over-year decline owing to significant shifts in electric vehicle strategy, ongoing tariff pressures, and targeted production adjustments. The automaker’s net income for the quarter came in at $1.32 billion, less than half of the previous year’s $3 billion, directly impacted by electric vehicle production changes, impairment charges related to underutilized assets, and canceled supplier agreements. Still, it raised the top 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 prior. GM’s market share hit 8.3%—the highest since 2017—as quarterly U.S. Sales shot up 8% to 710,347 units.
Guidance raised
Despite these challenges, GM raised its full-year adjusted Ebit guidance to the $12 billion to $13 billion range, up from its previous guidance of $10 billion to $12.5 billion. The company now anticipates that adjusted automotive free cash flow will reach $10 billion to $11 billion, and adjusted diluted EPS is projected to be between $9.75 and $10.50, exceeding spring estimates.
GM attributes these upgrades partly to tariff mitigation strategies; the manufacturer now expects annual tariff costs for 2025 to be $3.5 billion to $4.5 billion, compared with spring forecasts as high as $5 billion. Barra expressed gratitude to President Donald Trump for recent tariff relief efforts specifically aimed at domestic manufacturers, including new offset programs for vehicles made in the U.S., estimated to bolster 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 offset 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 significant domestic sourcing and manufacturing footprint.”
Core strength stemmed from robust sales of gas-powered vehicles, including pickups such as the Chevrolet Silverado and the GMC Yukon SUV. At the same time, incentives remained steady at just 4% of the average transaction price, well below the industry average. GM’s EV division delivered a record 66,501 units thanks to federal tax credits, although the company expects sales to moderate in the wake of tax credit expiration.
For this story, Coins2Day used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.
