General Motors Q3 Earnings Beat Expectations, Decline Y/Y

General Motors GM reported third-quarter 2025 adjusted earnings of $2.80 per share, which beat the Zacks Consensus Estimate of $2.28. Higher-than-expected revenues from GM North America (“GMNA”), GM International’s (“GMI”) and GM Financial segments led to the outperformance. The bottom line, however, decreased from the year-ago quarter’s $2.96. Revenues of $48.59 billion beat the Zacks Consensus Estimate of $43.61 billion but fell from $48.76 billion recorded in the year-ago period.

The U.S. auto giant recorded adjusted earnings before interest and taxes (“EBIT”) of $3.38 billion, lower than $4.12 billion in the prior-year quarter. The automaker’s share in the GM market was 8.3% in the reported quarter, up from 8.1% in the year-ago quarter.

General Motors Company Price, Consensus and EPS Surprise

General Motors Company price-consensus-eps-surprise-chart | General Motors Company Quote

Segmental Performance of GM

GMNA generated net revenues of $40.51 billion, down from $41.16 billion recorded in the corresponding period of 2024. The figure, however, outpaced our model’s projection of $37.08 billion on higher-than-expected deliveries. Wholesale vehicle sales in the GMNA unit totaled 840,000 units, down from 893,000 units reported in the year-ago quarter. The figure, however, surpassed our estimate of 793,000 units. The segment’s adjusted EBIT totaled $2.51 billion, down from $3.98 billion recorded in the year-earlier period. The metric also missed our estimate of $3.79 billion.

GMI net revenues in the reported quarter amounted to $3.65 billion, up from the year-ago quarter’s $3.52 billion. The metric also outpaced our expectation of $3.52 billion. The segment’s wholesale vehicle sales of 137,000 units decreased from 140,000 units in the year-ago quarter but matched our forecast. GMI reported an operating profit of $226 million, up from $42 million reported in the year-ago period and outpaced our estimate of $86 million. 

GM Financial generated net revenues of $4.34 billion in the quarter, which increased from $4.03 billion recorded in the year-ago period and surpassed our prediction of $4.18 billion. The segment recorded an EBT-adjusted operating profit of $804 million, up from $687 million recorded in the year-ago period. The metric also beat our prediction of $688 million.

GM’s Financial Position

General Motors had cash and cash equivalents of $22.91 billion as of Sept. 30, 2025. The long-term automotive debt at the end of the quarter was $15.62 billion. Net automotive cash provided by operating activities amounted to $6.07 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $2.21 billion in the third quarter of 2025, down from $5.83 billion generated in the year-ago quarter.

GM’s Zacks Rank & Key Picks

General Motors carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Cooper-Standard Holdings Inc. CPS, OPENLANE, Inc. KAR and Mobileye Global Inc. MBLY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CPS’ 2025 sales and earnings implies year-over-year growth of 1.1% and 126.6%, respectively. EPS estimates for 2026 have improved 23 cents in the past seven days.

The Zacks Consensus Estimate for KAR’s fiscal 2025 sales and earnings implies year-over-year growth of 5.6% and 37.7%, respectively. EPS estimates for fiscal 2025 have improved 13 cents in the past 90 days. EPS estimates for fiscal 2026 have improved 2 cents in the past seven days.

The Zacks Consensus Estimate for MBLY’s 2025 sales and earnings implies year-over-year growth of 11.6% and 36%, respectively. EPS estimates for 2025 have improved a penny in the past 60 days. EPS estimates for 2026 have improved a penny in the past 30 days. 

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This article originally published on Zacks Investment Research (zacks.com).

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