General Motors (GM) stock has surged during Tuesday’s US stock trading session after posting a solid Q3 earnings report. Its Adjusted Earnings Per Share (EPS) hit $2.80, beating the average analyst estimate of $2.31. Meanwhile, revenue topped $48.59 billion, slightly below last year’s $48.76 billion but well ahead of the $45.27 billion analyst consensus. GM also saw net Income of $1.32 billion, which was a 57% decrease compared to Q3 2024, which was likely due to the special charge related to EVs.
Outside of the solid earnings report, GM also revealed an improved full-year profit outlook. GM now sees full-year EBIT in a range of $12 billion to $13 billion (previously $10 billion to $12.5 billion), with adjusted automotive free cash flow of $10 billion to $11 billion (previously $7.5 billion to $10 billion). It also forecast adjusted earnings per share (EPS) of $9.75 to $10.50 diluted (versus $8.25 to $10.00 before).
“Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory,” GM CEO Mary Barra said in her shareholder letter. “I also want to thank the President and his team for the important tariff updates they made on Friday,” she added. “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.”
How is GM Stock Doing
GM stock jumped over 8% in early trade, and is up 28% YTD at press time. At $67, GM is trading near the top of its 52-week range and above its 200-day simple moving average. Wall Street analysts are looking positively at GM stock. This week, Piper Sandler raised the firm’s price target on General Motors (GM) to $66 from $48, maintaining a Neutral rating on the shares.
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Further, CFRA’s Garrett Nelson said in a note Tuesday morning that GM’s moves to navigate US tariffs bode well for the company and its stock. “We think management’s ability to raise guidance despite tariff headwinds of $3.5B-$4.5B (improved from $4B-$5B) demonstrates effective mitigation and operational flexibility.”