DETROIT — General Motors (GM) is scheduled to release its third-quarter earnings report before the market opens on Tuesday. The automotive giant faces numerous challenges in the current market landscape, prompting significant interest from investors and analysts alike. Here, we break down what Wall Street is anticipating based on average estimates compiled by LSEG.
According to current estimates, GM is expected to report an adjusted earnings per share of $2.31 and a total revenue of $45.27 billion. If these figures hold true, it will indicate a substantial 7.2% decrease in revenue compared to the same quarter last year and a staggering 22% drop in adjusted earnings per share.
For context, GM's results from the same quarter last year revealed a revenue of $48.76 billion, with a net income attributable to stockholders reaching $3 billion and adjusted earnings before interest and taxes amounting to $4.1 billion.
In the week leading up to this earnings report, GM pre-announced a $1.6 billion special-item impact related to its strategic pullback from all-electric vehicles. This cost includes a noncash impact of $1.2 billion and $400 million in cash. While this adjustment will not affect the company’s adjusted results, it is expected to dampen GM's overall bottom line.
Beyond the changes in their electric vehicle strategy, GM and the wider automotive industry are navigating a host of challenges. These include shifting regulations, tariffs, inflation, and various other market disruptions. Several analysts on Wall Street have voiced concerns that GM might not meet its earnings estimates for the quarter, particularly due to potential risks associated with truck production shifts, trim mix variations, and warranty costs.
GM's Chief Financial Officer, Paul Jacobson, indicated in July that the impact of tariffs is likely to be slightly more pronounced in the third quarter than in previous periods. He projected that GM anticipates an increase in tariff costs between $4 billion and $5 billion in 2025, with at least 30% of those costs expected to be offset by the company.
The full-year guidance for GM has been revised, factoring in the effects of tariffs. The revised expectations include an adjusted EBIT ranging from $10 billion to $12.5 billion, with adjusted earnings per share between $8.25 and $10. GM also projects net income attributable to stockholders between $7.7 billion and $9.5 billion, and adjusted automotive free cash flow between $7.5 billion and $10 billion.
As of Monday’s market close, GM shares have seen a notable increase of approximately 9% in 2025. Investors will be closely watching the upcoming earnings report to gauge how the company is navigating these turbulent times in the automotive sector.
