General Motors and GE Boost Earnings Outlook Amid S&P 500 Growth
New York, Tuesday, 21 October 2025.
General Motors and General Electric have raised their earnings forecasts, contributing to an expected 8% profit increase for S&P 500 firms. This signifies the ninth consecutive quarter of growth.
General Motors Exceeds Expectations
General Motors Co. (NYSE: GM) reported a significant increase in their third-quarter results for 2025, surpassing Wall Street expectations. The company announced an adjusted earnings per share (EPS) of $2.80, compared to the expected $2.31, and revenue of $48.59 billion, exceeding the anticipated $45.27 billion. This robust performance led GM to revise its full-year financial guidance upwards, projecting an adjusted EBIT range of $12 billion to $13 billion and adjusted EPS of $9.75 to $10.50 [4][5].
Impact of Global Operations
GM’s operations in North America remained a significant profit center, earning over $2.5 billion on an adjusted basis in Q3 2025. However, the adjusted profit margin saw a decline from 9.7% to 6.2%. Gains from China operations increased by $217 million year-over-year, while international markets contributed an additional $184 million, offsetting weaker performance in North America [5][6].
General Electric’s Earnings Forecast
General Electric (GE) also raised its earnings forecast, reflecting a positive outlook for its diverse business portfolio. As part of the S&P 500, GE’s improved guidance contributed to the anticipated 8% profit growth across the index, marking continuous recovery momentum post-pandemic. Investors are closely watching the company’s performance in its energy and healthcare segments, which are pivotal to its earnings trajectory [2][5].
Market Reactions and Future Outlook
Following these announcements, GM’s stock surged by over 15%, closing at $58 per share, marking its best trading day since 2020. Analysts remain optimistic about the company’s strategic focus on electric vehicles (EVs), despite current profitability challenges. Looking ahead, the market is keenly awaiting earnings reports from major players such as Tesla and Netflix, as these will further shape the economic landscape for the remainder of the year [4][6].