GM boosts profit forecast amid easing tariff pressures, shares soar
General Motors has raised its financial outlook for the year and slightly reduced its projected impact from tariffs, as the automaker anticipates U.S. tariff relief while navigating a softer market for electric vehicles.
The company now forecasts annual adjusted core profit between $12.0 billion and $13.0 billion, up from its previous estimate of $10.0 billion to $12.5 billion, News.Az reports, citing Reuters.
GM also lowered its expected tariff impact to $3.5 billion–$4.5 billion, down from an earlier range of $4 billion–$5 billion.
Shares surged about 8% in premarket trading following the announcement, while crosstown rival Ford and U.S.-listed Stellantis shares rose nearly 2% each. GM’s quarterly adjusted earnings per share fell to $2.80, but still exceeded LSEG analysts’ forecast of $2.31.
Earlier this month, GM recorded a $1.6 billion charge linked to changes in its EV strategy. The $7,500 tax credit on battery-powered models ended in September, alongside further easing of vehicle emissions regulations.
In a shareholder letter, CEO Mary Barra said the company expects additional EV-related charges in the future. “By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond,” she noted.
Revenue for the quarter ended September slipped slightly to $48.6 billion year-over-year. U.S. car sales remained robust despite tariff uncertainties, rising 6% in the third quarter. Automakers have largely avoided passing tariff costs onto consumers, with buyers favoring higher-priced models and additional features.
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