- GM lifted its FY25 adjusted EBIT outlook to $12–$13 billion and EPS to $9.75–$10.50, citing strong truck and SUV demand and easing tariff costs.
- The stock soared 14.9% to $66.62, marking its best session since 2020, after analyst upgrades from UBS, Wedbush, and Piper Sandler boosted investor confidence.
- On Stocktwits, retail sentiment hit a year-high of 96/100, with traders calling for further gains toward the $75–$100 range.
Shares of General Motors (GM) logged their best session in five years on Tuesday after the automaker posted a strong third-quarter (Q3) beat, raised its 2025 profit guidance, and drew several bullish analyst upgrades.
The stock soared 14.9% to $66.62 on Tuesday and added 0.5% in after-hours trading.
Raised Outlook And Tariff Relief
GM said it now expects adjusted EBIT of $12 billion to $13 billion in FY25, up from a prior range of $10 billion to $12.5 billion, driven by strong truck and SUV sales and lower tariff expenses. The company also raised its EPS forecast to $9.75–$10.50 and projected automotive free cash flow between $10 billion and $11 billion, supported by easing tariff costs and disciplined spending.
CEO Mary Barra credited the administration’s extension of tariff discounts for automakers producing domestically, saying the move “supports American innovation and jobs.”
GM Analyst Upgrades
A series of analyst actions added momentum to Tuesday’s rally. Piper Sandler lifted its price target on GM to $66 from $48, keeping a ‘Neutral’ rating. UBS reiterated a ‘Buy’ rating with an $81 price target, saying GM “hit the trifecta” with beats on earnings, cash flow, and guidance, and expects investor reaction to remain favorable given earlier skepticism.
At Wedbush Securities, analyst Daniel Ives raised the price target to $75 from $65 while maintaining an ‘Outperform’ rating, citing GM’s margin resilience and its ability to offset tariff pressures. Wedbush highlighted the company’s growing software and services segment, led by Super Cruise and OnStar, which generated roughly $2 billion in revenue and holds a deferred revenue pipeline of about $5 billion, up 90% year-over-year, as a “high-margin recurring source.”
Earnings Review
For the quarter ended Sept. 30, GM reported revenue of $48.59 billion, ahead of Koyfin’s $44.89 billion estimate. EBIT came in at $3.38 billion, above Koyfin’s forecast of $2.57 billion.
On the bottom line, adjusted EPS stood at $2.80, above the $2.01 projected by Koyfin, despite a year-over-year decline of about 28%. Adjusted EBIT margin for the quarter was 6.9%, compared with 8.4% a year ago, as GM absorbed approximately $1.1 billion in tariff-related costs and a $1.6 billion charge for EV business restructuring.
Free cash flow came in at $4.2 billion, above the prior period’s $2.9 billion, though down from $5.8 billion a year earlier, as the company increased investments in onshore production and mitigated supply disruptions. CFO Paul Jacobson said capital spending would remain at the lower end of the $10–$11 billion range, consistent with GM’s plan to reduce tariff exposure through U.S.-based production.
Stocktwits Sentiment Hits Year-High
On Stocktwits, retail sentiment toward GM was ‘extremely bullish,’ hitting its highest level of the year (96/100), alongside a 1,977% surge in 24-hour message volume.
One user said that GM’s earnings showed consumers “are still spending big time.”
Another user commented that the stock “still has room to run,” predicting it could hit $75 by the end of next month amid strong auto demand.
A third user pointed to UBS’s $81 price target, saying they expected the stock “to fly to $100 very soon.”
General Motors’ stock has risen 26% so far in 2025.
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