General Motors (GM) earnings Q3 2025

General Motors Co. has raised its 2025 financial guidance after exceeding Wall Street’s top- and bottom-line earnings expectations for the third quarter. The company’s strong performance was driven by its compelling vehicle portfolio and the collective efforts of its team. As a result, shares of GM swung from a 2.4% decline to a 9% increase during premarket trading on Tuesday.

The company’s third-quarter revenue was $48.59 billion, down less than 1% from $48.76 billion in the same period last year. Its adjusted earnings per share were $2.80, beating the expected $2.31. GM’s adjusted EBIT was $3.38 billion, exceeding the expected $2.72 billion. The updated guidance includes adjusted earnings before interest and taxes of between $12 billion and $13 billion, or $9.75 to $10.50 adjusted EPS.

Financial Performance

GM’s new outlook signals strength for the automaker heading into the fourth quarter and beats Wall Street analysts’ current expectations for the last three months of the year. The company’s adjusted automotive free cash flow is expected to be between $10 billion and $11 billion, up from $7.5 billion to $10 billion. The automaker’s new EPS target suggests a fourth-quarter adjusted EPS of between $1.64 and $2.39, with a midpoint around $2.02, which is above the current consensus of $1.94.

GM CEO Mary Barra attributed the company’s strong performance to the collective efforts of its team and its compelling vehicle portfolio. Barra expressed confidence in the company’s trajectory, citing its ability to deliver another very good quarter of earnings and free cash flow. The company also reduced the expected impact of tariffs this year to between $3.5 billion and $4.5 billion, down from $4 billion to $5 billion.

Electric Vehicle Impact

GM’s adjusted results do not include $1.6 billion in special charges reported by the automaker last week due to its pullback in all-electric vehicles. The company’s net income attributable to stockholders was $1.3 billion during the just-reported period, down 57% from roughly $3.1 billion a year earlier. GM CFO Paul Jacobson noted that only about 40% of the company’s EVs were profitable on a production, or contribution-margin basis.

Jacobson signaled that the company expects profitability of EVs to take longer than previously expected amid an expected slowdown in adoption. Despite this, GM has made significant gains in EV sales this year, with its market share increasing from 8.7% to 13.8% through the third quarter. The company still trails U.S. EV leader Tesla by a wide margin.

North American Business

GM’s North American business earned more than $2.5 billion during the third quarter, on an adjusted basis. However, its adjusted profit margin declined from 9.7% a year earlier to 6.2% during the most recent quarter. Barra stated that the automaker’s top priority is to return to 8% to 10% adjusted profit margins in North America through driving EV profitability, maintaining production and pricing discipline, managing fixed costs, and further reducing tariff exposure.

Gains in the company’s China operations and international markets helped offset the lower North American earnings during the third quarter. GM Financial, the automaker’s lending arm, reported adjusted earnings of $804 million, up 17% from the third quarter of 2024. The company’s strong performance and updated guidance have positioned it for success in the fourth quarter and beyond.