General Motors (GM) Is About to Report Q2 Earnings Tomorrow. Here's What to Expect

Business Insider

7 days ago

Legacy automaker General Motors (GM) is set to release its second-quarter 2025 financials on July 22. GM is struggling with slow EV sales, particularly in China, where lower-cost domestic rivals are gaining ground. On top of that, changing U.S. policies on EV incentives and tariff concerns are adding to the uncertainty around its future. For Q2, Wall Street expects EPS of $2.32, marking a decline of 24% year-over-year, while revenue is projected to decline 5% to $45.79 billion.
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Meanwhile, TipRanks' AI stock analysis has assigned an Outperform rating on General Motors stock with a price target of $54, reflecting a 1.47% upside potential.
On July 2, General Motors reported a 7.3% rise in U.S. sales to 746,588 vehicles in the second quarter. The increase was driven by strong demand for its crossover SUVs, full-size pickups, and a sharp uptick in electric vehicle (EV) deliveries.
Last month, General Motors said that it plans to invest up to $4 billion over the next two years to expand production at three U.S. plants. The amount will help GM boost domestic manufacturing of both gas and electric vehicles (EVs) at its plants in Michigan, Kansas, and Tennessee.
Analyst's Views Ahead of GM 's Q2 Earnings
Heading into the Q2 results, Goldman Sachs analyst Mark Delaney raised the firm's price target on General Motors to $70 from $60 and kept a Buy rating on the stock. He increased the price target based on expectations for milder tariffs than initially expected, which supports a better outlook for the U.S. auto market.
That said, Delaney warned that U.S. auto sales could still slow in the second half of the year due to early buying ahead of tariffs and likely higher prices. Goldman now expects U.S. auto sales to reach 15.75 million units in 2025 and 15.50 million in 2026, up from its earlier forecast of 15.40 million and 15.25 million.
Options Traders Anticipate a Minor Move
Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry, the Options tool does this for you.
Indeed, it currently says that move in either direction.
Is GM a Good Stock to Buy?
On TipRanks, GM stock has a Moderate Buy consensus rating based on 12 Buys, six Holds, and two Sells assigned in the last three months. The average General Motors stock price target of $54.92 suggests an upside potential of 3.19% from its current price. Over the past year, shares of the company have gained about 7%.