TLDR
- GM stock hit a 52-week high of $67.59 and surged 19% in one week to close at $69.66 after beating Q3 earnings expectations with $2.80 EPS versus $2.31 expected.
- The company raised its full-year profit guidance to $12.0-13.0 billion EBIT from $10.0-12.5 billion and lowered projected tariff costs to $3.5-4.5 billion.
- GM took a $1.6 billion charge to scale back EV capacity due to the loss of federal tax credits and expects slower near-term EV adoption than planned.
- Multiple analysts raised price targets, with TD Cowen setting a $100 target and Wedbush and Citigroup raising targets to around $75.
- The company continues returning value to shareholders through dividends and share buybacks, with about $16 billion authorized since 2023.
General Motors stock reached new heights in late October 2025, closing at roughly $69.66 on October 24. This marked the company’s highest level ever.
The surge came after GM reported third-quarter earnings that exceeded Wall Street expectations. The automaker posted adjusted earnings per share of $2.80, beating the consensus estimate of $2.31.
Revenue came in at $48.6 billion for the quarter. U.S. light-vehicle sales grew about 6% during the period.
The stock jumped nearly 15% on October 21 when the earnings were announced. It continued climbing through the week, finishing with a 19.3% gain for the five trading days ending October 24.
This performance marked GM’s best weekly showing in years. The move pushed shares past their previous 52-week high of $67.59.
Ford also rallied during the same period, gaining about 16% for the week. The broader auto sector saw strong momentum following these results.
GM’s stock has now gained 26.4% since the start of 2025. That compares to an 8.6% move for the auto sector and a 10.2% return for the domestic automotive industry.
The company has beaten earnings estimates in each of the last four quarters. In its most recent report, GM also exceeded the consensus revenue estimate by 9.76%.
Raised Guidance Fuels Optimism
Management increased its full-year profit forecast after the strong quarter. GM now expects $12.0 to $13.0 billion in core operating profit, up from the prior range of $10.0 to $12.5 billion.
Adjusted earnings per share guidance was also lifted. The company now projects $9.75 to $10.00 per share, compared to the previous range of $8.25 to $10.00.
Tariff costs were revised lower in the updated outlook. General Motors now sees $3.5 to $4.5 billion of impact from tariffs, down from earlier projections.
CEO Mary Barra said in a shareholder letter that the company delivered another strong quarter of earnings and free cash flow. She noted the raised guidance reflects that performance.
The company expects 2026 sales to exceed 2025 levels. New products and technologies are expected to drive that growth.
GM’s market share in trucks, crossovers, and SUVs reached its strongest level in years during the third quarter. The company claims it will lead full-size pickup sales for the sixth straight year.
Free cash flow remained robust during the period. The company continues its share buyback program, with about $16 billion authorized since 2023.
GM also announced a fourth-quarter dividend. These capital returns reflect management’s confidence in the business.
Electric Vehicle Strategy Shifts
The earnings report included a $1.6 billion charge related to electric vehicles. GM is scaling back EV capacity after the federal $7,500 tax credit ended on September 30.
Looser fuel economy mandates also contributed to the decision. The company now expects slower near-term EV adoption than previously planned.
Barra said it’s clear that near-term EV demand will be lower than expected. Consumers are likely to delay EV purchases without incentives, she added.
The charge included $1.2 billion in impairments and $400 million related to unused batteries and canceled projects. GM is slowing expansion of some EV projects to avoid oversupply.
Despite the pullback, GM doubled its EV sales in the first nine months of 2025 versus the prior year. The company achieved about 16.5% of U.S. EV market share in Q3, though still behind Tesla.
New models like the Chevy Equinox EV and Cadillac Lyriq are selling well. GM continues investing in battery plants and factory upgrades, with about $7 billion committed to U.S. facilities.
CFO Paul Jacobson said customers still want EVs. He stated the company will continue focusing on improving EV profitability even as incentives fade.
At its GM Forward event this week, the company previewed future technology. Features shown included eyes-off highway driving for a 2028 Cadillac Escalade IQ EV and an in-vehicle Google AI chatbot.
Traditional trucks and SUVs remain GM’s primary profit driver. Barra emphasized that internal combustion engine volumes will remain higher for longer.
The company pointed to rising sales of Silverado, Sierra, and Escalade models. GM has held the full-size SUV crown for more than 50 years.
Analyst Response
Multiple analysts raised their price targets following the earnings report. TD Cowen increased its 12-month target to $100 from $92, maintaining a Buy rating.
Wedbush lifted its target to $75 with an Outperform rating. Citigroup also raised its target to $75 with a Buy rating.
The consensus rating on MarketBeat stands at Moderate Buy. The average analyst price target sits near $68, slightly below where the stock closed on October 24.
Some analysts praised GM’s turnaround efforts. The combination of lower costs, solid sales, and improved guidance drew positive commentary from several firms.
For the current fiscal year, GM is expected to post earnings of $9.59 per share on $180.23 billion in revenues. This represents a 9.53% decline in EPS on a 3.85% decrease in revenues compared to the prior year.
Looking ahead to the next fiscal year, analysts expect earnings of $10.12 per share on $178.55 billion in revenues. That would mark a 5.5% increase in earnings on a 0.93% decline in revenue.
GM currently trades at 7 times current fiscal year earnings estimates. The peer industry average sits at 13.5 times earnings.
On a trailing cash flow basis, the stock trades at 2.9 times versus the peer group average of 6 times. The company has a PEG ratio of 1.76.
GM holds a Zacks Rank of 2 (Buy) due to rising earnings estimates. The stock has a Value Score of A, with Growth and Momentum Scores of B and A respectively.
Canada announced new limits on tariff-free U.S. vehicle imports, cutting GM’s quota by 24% due to reduced Canadian output.
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