GM Overcomes Obstacles, Delivers Stronger-Than-Expected Q3 Results

On October 21, 2025, General Motors (GM) reported third-quarter results that exceeded Wall Street's expectations, sending the company's stock price up by as much as 10% in premarket trading. Despite a 57% drop in net income compared to the same period last year, GM's revenue remained flat at nearly $49 billion, surpassing the $45.3 billion forecast.

The automaker's adjusted earnings per share came in at $2.80, well ahead of the $2.31 projected by analysts. This performance was driven by strength in GM's China operations, which swung to an $80 million profit, and solid cash flow from its finance arm. However, the company's all-important North American market saw profit margins narrow to 6.2% from 9.7% a year ago, due to the impact of tariffs.

Nonetheless, GM was able to raise its full-year guidance, now expecting adjusted EBIT of up to $13 billion and adjusted EPS of $10.50 - both higher than previous projections. The company cited lower-than-expected tariff costs, which it now estimates will range between $3.5 billion and $4.5 billion in 2025, down from earlier estimates as high as $5 billion.

While GM's all-electric efforts weighed on profits, the company's traditional truck and SUV business, including models like the Chevrolet Silverado and GMC Sierra, remained the cash cow, generating most of the company's revenue. This old-fashioned profit center has helped offset the challenges faced by GM's future-facing ventures, at least for now.