Why Is General Motors (GM) Up 1.8% Since Last Earnings Report?

Core Insights - General Motors reported strong Q3 2025 earnings, with adjusted earnings of $2.80 per share, surpassing estimates and driven by higher revenues across multiple segments [3][9] - Despite the positive earnings report, revenues decreased year-over-year, indicating potential challenges ahead [3][8] Financial Performance - Adjusted EBIT for Q3 2025 was $3.38 billion, down from $4.12 billion in the prior year [4] - Total revenues reached $48.59 billion, exceeding the consensus estimate but lower than the previous year's $48.76 billion [3][5] - GM North America (GMNA) generated revenues of $40.51 billion, a decline from $41.16 billion year-over-year, but still above projections [5] - GM International (GMI) saw revenues increase to $3.65 billion, up from $3.52 billion in the previous year [6] - GM Financial's revenues rose to $4.34 billion, compared to $4.03 billion in the year-ago period [7] Segment Analysis - GMNA's wholesale vehicle sales totaled 840,000 units, down from 893,000 units year-over-year, but exceeded estimates [5] - GMI's wholesale vehicle sales decreased to 137,000 units from 140,000 units, yet matched forecasts [6] - GM Financial reported an operating profit of $804 million, up from $687 million in the previous year [7] Financial Position - As of September 30, 2025, GM had cash and cash equivalents of $22.91 billion and long-term automotive debt of $15.62 billion [8] - Adjusted automotive free cash flow was $2.21 billion, significantly lower than $5.83 billion in the prior year [8] Guidance and Outlook - GM updated its full-year 2025 earnings guidance, expecting net income of $7.7–$8.3 billion, with adjusted EBIT projected at $12–$13 billion [9][10] - The company anticipates a stronger 2026, focusing on long-term profitability and reducing EV-related losses [12] - Estimates for GM have trended upward, with a consensus shift of 17.21% in the past month [13][15] Investment Scores - GM holds an average Growth Score of C and a Momentum Score of D, but an A grade on the value side, placing it in the top 20% for this investment strategy [14] - The stock has an aggregate VGM Score of A, indicating strong overall performance [14]