A month has gone by since the last earnings report for General Motors (GM). Shares have added about 1.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is General Motors due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for General Motors Company before we dive into how investors and analysts have reacted as of late.
General Motors Q3 Earnings Top Estimates
General Motors 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.
Segmental Performance
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.
Guidance
General Motors has updated its full-year 2025 earnings guidance. The company now expects net income attributable to stockholders of $7.7–$8.3 billion, slightly narrower than the previous range of $7.7–$9.5 billion. Adjusted EBIT is projected at $12–$13 billion, up from $10.0–$12.5 billion, while automotive operating cash flow is now expected between $19.2 billion and $21.2 billion, above the prior $17–$20.5 billion range.
Adjusted automotive free cash flow is forecast at $10–$11.0 billion, compared with $7.5 billion–$10.0 billion earlier. Adjusted diluted EPS is $9.75–$10.50 compared with the prior guidance of $8.25-$10 billion.
Adjusted EBT of GM Financial unit is expected to range within $2.5 billion to $3 billion in 2025. Capex for 2025 is anticipated to be at the lower end of $10 billion to $11 billion guidance range.
GM expects 2026 to be a stronger year than 2025, with a clear focus on positioning the business for long-term profitability. Key levers for improvement include reducing EV-related losses, managing warranty costs, offsetting tariff impacts, optimizing regulatory compliance, and controlling fixed costs. The company plans to continue right-sizing its EV production capacity to better match demand. A top priority is restoring adjusted EBIT margins for GM North America to the 8%–10% range over time.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 17.21% due to these changes.
VGM Scores
Currently, General Motors has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise General Motors has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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General Motors Company (GM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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