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GM is trading sharply higher after delivering its largest EPS beat since Q3 last year. Revenue dipped 0.3% yr/yr to $48.59 bln, but topped expectations. The big upside came from raised FY25 guidance and lower expected tariff impact.

• FY25 adjusted EPS outlook was raised to $9.75-10.50 (from $8.25-10.00), with Q4 implied upside. FY25 EBIT-adjusted guidance increased to $12-13 bln (from $10.0-12.5 bln).
• Q3 EBIT-adjusted fell 18% yr/yr to $3.38 bln, hit by $1.1 bln in tariffs, partially offset by cost actions.
• FY25 tariff exposure lowered to $3.5-4.5 bln (from $4-5 bln).
• Q3 EBIT margin dropped to 6.9% (would have been ~9% ex-tariffs); North America at 6.2%. Warranty expense rose $900 mln yr/yr; GM is pushing dealers to reduce costs.
• US market share rose to 17% (+50 bps); incentives stayed below industry average.
• EV sales set a Q3 record but demand has since softened; GM is shifting some production back to ICE and cut EV inventory by nearly 30%.

Briefing.com Analyst Insight:

GM delivered a better-than-feared Q3, especially around the headline worries on tariffs. The lowered FY25 tariff exposure and raised profit guidance were clear positives and helped boost sentiment. While revenue was slightly down, cost discipline, strong ICE performance, and reduced EV inventories were encouraging. Still, margin compression and soft EV demand cloud the medium-term story. GM's pivot back toward ICE production highlights ongoing challenges in its EV transition. The stock looks more attractive with the updated outlook, and GM was pretty bullish about 2026. This bodes well for Ford's (F) earnings on Thursday after the close.