General Motors’ third quarter results were met with a positive market reaction, as the company surpassed Wall Street’s revenue and adjusted profit expectations despite flat year-over-year sales. Management attributed the quarter’s performance to disciplined inventory and pricing strategies, as well as resilient demand for both internal combustion engine (ICE) and electric vehicles (EVs) in the U.S. CEO Mary Barra emphasized the company’s ability to navigate regulatory shifts and supply chain disruptions, specifically noting, “We delivered another very strong quarter of earnings and free cash flow.”
Is now the time to buy GM? Find out in our full research report (it’s free for active Edge members).
General Motors (GM) Q3 CY2025 Highlights:
- Revenue: $48.59 billion vs analyst estimates of $45.02 billion (flat year on year, 7.9% beat)
- Adjusted EPS: $2.80 vs analyst estimates of $2.32 (20.5% beat)
- Adjusted EBITDA: $6.24 billion vs analyst estimates of $5.34 billion (12.8% margin, 16.9% beat)
- Management raised its full-year Adjusted EPS guidance to $10.13 at the midpoint, a 11% increase
- Operating Margin: 2.2%, down from 7.5% in the same quarter last year
- Sales Volumes fell 5.4% year on year (5.3% in the same quarter last year)
- Market Capitalization: $65.04 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From General Motors’s Q3 Earnings Call
- Joseph Spak (UBS) asked about the impact of expanded tariff offsets and whether savings would persist into 2026. CFO Paul Jacobson explained that broader parts eligibility would help reduce tariff exposure, though the final amounts depend on ongoing trade negotiations.
- Itay Michaeli (TD Cowen) inquired about relaxed emissions regulations and the resulting opportunity for ICE vehicle sales. CEO Mary Barra noted that extended ICE demand supports incremental volume and that supply-constrained models like the Equinox and full-size SUVs will benefit from expanded U.S. capacity.
- Dan Levy (Barclays) pressed for details on the company’s progress in mitigating tariff costs and the timeline for realizing manufacturing footprint changes. Jacobson said most benefits from capital investment would be realized starting in late 2026.
- Mark Delaney (Goldman Sachs) questioned the feasibility of restoring North America margins to 8–10% without significant tariff reduction. Jacobson responded that improved cost structure, lower warranty expenses, and rightsizing EV capacity make the target achievable over time.
- Ryan Brinkman (JPMorgan) asked about auto loan performance and consumer credit risk. GM Financial CEO Susan Sheffield reported that the portfolio remains resilient, with predominantly prime borrowers and stable charge-off rates.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will track (1) the impact of GM’s production realignment and progress toward restoring North American margins, (2) further developments in tariff mitigation and regulatory policy shifts, and (3) the pace of revenue expansion in software and services such as OnStar and Super Cruise. Additional attention will be given to how management balances near-term EV adoption trends against ongoing investments in battery and software innovation.
General Motors currently trades at $69.36, up from $58.02 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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