Goldman Sachs Keeps Buy Rating on GM

Goldman Sachs analyst Mark Delaney reiterated on October 21, 2025, its $74 price target on General Motors, while maintaining a ‘Buy’ rating on the stock.

“We believe this was a strong report, with:

1) the company reporting 3Q revenue, EBIT (and EBIT margin), and EPS above the Street (FactSet);

2) GM raised its CY25 EBIT, EPS, and FCF guidance;

3) The mid-point of the revised 2025 guidance implies 4Q EBIT/EPS that is above the Street;

4) GM commented in its slide deck it expects 2026 to be better than 2025.

We expect tariffs (including the impact of the latest US tariff policy announced on 10/17), market conditions, EV profitability, less stringent US emissions rules, and AVs/AI/software to be key topics on the call.

GM reported 3Q25 total revenue/non-GAAP EPS of $48.6 bn/$2.80 vs. GS at $46.8 bn/$2.24 and the Street (FactSet) at $45.0 bn/$2.29.

Total company adjusted EBIT was $3.4 bn (~6.9% of sales), compared to both GS and the Street at $2.7 bn.

GM commented that the yoy decrease to adjusted EBIT was mainly driven by tariff costs, warranty, and volumes, partly offset by mix, price, and cost efficiencies.

Adjusted automotive FCF in the quarter was $4.2 bn.

GM updated its CY25 financial guidance for adjusted EBIT to $12 bn-$13 bn (from $10 bn-$12.5 bn prior), which compares to GS at $12.2 bn and the Street at $11.4 bn.

GM lowered its gross tariff expectation to $3.5-$4.5 bn from $4-$5 bn prior and the company expects to mitigate ~35% of this (from at least 30% prior).

GM updated its CY2025 adjusted EPS to $9.75-$10.50 (from $8.25 to $10.00 prior), which compares to GS at $10.05 and the Street at $9.46.

GM updated its adjusted auto free cash flow guidance to $10 bn-$11 bn (from $7.5 bn-$10.0 bn prior).

GM’s 2025 financial guidance includes anticipated capital spending of $10.0 bn-$11.0 bn (unchanged), inclusive of investments in the company’s battery cell manufacturing joint ventures.

GM expects 2026 to be stronger than 2025 per the slide deck, with potential progress on EV losses, warranty costs, regulation rules, and fixed costs.”

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