General Motors Stock: Surge of 14.86% Following Raised Annual Forecasts
General Motors stock experienced a remarkable session on Tuesday, October 21, 2025, gaining nearly 15% at the close of Wall Street trading. The Detroit automaker topped the S&P 500 after posting quarterly results that exceeded expectations and raising its financial targets for the full year. This performance comes as the US market makes more modest gains.
Impressive Trading Day for General Motors
General Motors' stock closed at $66.62, up 14.86% from the previous session. Trading volumes surged with 43.7 million shares exchanged, representing 4.59% of the group's market capitalization. This capital turnover reflects strong investor interest following this quarterly release. Over the week, the stock now shows a gain of 16.57%, bringing its performance since the beginning of the year to approximately 21.8%. Over the past year, General Motors stock has risen by 36.15%, significantly outperforming the S&P 500 index, which has increased by 18.33% over the same period. The benchmark American index itself ended slightly up by 0.36% at 6,740.28 points this Tuesday.
Earnings Exceed Expectations
The surge in the stock followed the announcement of the third-quarter 2025 results, which exceeded market expectations. The company reported an adjusted earnings per share of $2.80 for the quarter, where analysts had expected $2.31 according to LSEG data. Quarterly revenue also positively surprised at $48.59 billion, against a consensus of $45.26 billion. Following these figures, General Motors raised its financial forecasts for the fiscal year 2025. The automaker now anticipates an adjusted EBIT of between $12 and $13 billion, up from a previous range of $10 to $12.5 billion. Adjusted earnings per share are also revised upwards, moving from a forecast of $8.25 to $10 to a new estimate of $9.75 to $10.50. This revision is explained in part by a reevaluation of the impact of tariffs on results, with the group now operating in a deemed more stable commercial environment. The expected impact on net income has been adjusted to a range of $3.5 to $4.5 billion, down from $4 to $5 billion previously.
Mixed Results in Different Areas
While net income for the third quarter was $1.293 billion, down 56.6% from the $3.008 billion generated a year earlier, this decrease is due to the presence of exceptional charges. Quarterly revenue slightly declined by 0.3% year-on-year to $48.6 billion. Geographically, the group's international activity showed improvement with a contribution of $226 million compared to $42 million a year earlier, while operations in China turned positive with $80 million in earnings, after a loss of $137 million in the third quarter of 2024. However, the adjusted free cash flow from automotive operations contracted by 28% to $4.2 billion, impacted by a decrease in operational cash flow.
