Catenaa, Tuesday, October 21, 2025– General Motors (GM) stock surged over 9% after the company reported an improved full-year profit outlook, as it grapples with President Trump’s proposed auto tariffs.
GM now sees full-year EBIT in a range of $12 billion to $13 billion (previously $10 billion to $12.5 billion), with adjusted automotive free cash flow of $10 billion to $11 billion (previously $7.5 billion to $10 billion).
It also forecast adjusted earnings per share (EPS) of $9.75 to $10.50 diluted (versus $8.25 to $10.00 before).
GM said its full-year tariff exposure is now estimated to be around $3.5 billion to $4.5 billion, assuming current levy rates remain unchanged and that indirect costs from suppliers do too.
Last spring, the automaker lowered its full-year guidance to include a possible $4 billion to $5 billion impact from auto tariffs.
GM stock jumped over 9% on Tuesday morning. The stock is up over 18.5% so far his year.
“Based on our performance, we are raising our full-year guidance, underscoring our confidence in the company’s trajectory,” GM CEO Mary Barra said in her shareholder letter.
“I also want to thank the President and his team for the important tariff updates they made on Friday,” she added. “The MSRP offset program will help make US-produced vehicles more competitive over the next five years, and GM is very well positioned as we invest to increase our already significant domestic sourcing and manufacturing footprint.”
GM also said tariff mitigations were expected to offset 35% of the cost, thanks to a lower tariff base.
For the third quarter, GM reported net revenue of $44.26 billion compared with the $45.18 billion estimated per Bloomberg consensus, based on Q3 adjusted EPS of $2.80 versus the $2.27 expected. Adjusted EBIT came in at $3.376 billion, compared with an estimated $2.72 billion.
