General Motors Q4 Earnings Beat Expectations with Positive Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Earnings Beat: General Motors reported an adjusted EPS of $10.60 for Q4, exceeding the high end of its own guidance range, indicating strong profitability despite missing revenue expectations, showcasing the company's solid operational performance.
- Increased Shareholder Returns: Management announced a 20% increase in the quarterly dividend and a new $6 billion share repurchase authorization, which will further reduce the outstanding share count and enhance investor confidence, reflecting the company's belief in sustainable cash flow.
- Optimistic Outlook: The company projects earnings of $11 to $13 per share for 2026, representing a 13% growth over 2025, while software and services revenue is expected to rise by 40% to $7.5 billion, highlighting the potential for high-margin revenue streams.
- Successful EV Strategy: GM's EV sales surged 48% year-over-year, positioning it as the clear number two in EV production, with management committed to continued investment in EV technology, anticipating quicker profitability and solidifying its market position.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on GM
Wall Street analysts forecast GM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GM is 82.06 USD with a low forecast of 48.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
1 Hold
1 Sell
Strong Buy
Current: 86.260
Low
48.00
Averages
82.06
High
100.00
Current: 86.260
Low
48.00
Averages
82.06
High
100.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI, Cruise and GM Financial. Its GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, its advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
GM Kicks Off 2026 with Strong Momentum Following Over 50% Return in 2025
Strong Performance in 2025: General Motors (GM) saw a remarkable return of over 54% in 2025, marking its best performance since its 2010 relisting on the NYSE, despite a decline in revenue in Q4.
Earnings Beat Expectations: GM reported adjusted earnings per share (EPS) of $2.51, significantly above expectations of $2.26, with a year-over-year growth of nearly 31% compared to estimates of around 18%.
Challenges in Electric Vehicle Market: The company faced challenges in the electric vehicle (EV) sector, leading to a reduction in production capacity and a $7 billion charge related to restructuring and impairment of EV assets.
Positive Long-Term Outlook: Analysts remain optimistic about GM's long-term prospects, with expectations for significant growth in EV market share by 2035, despite current market share declines and environmental challenges.
Continue Reading
General Motors Q4 Earnings Analysis
- Earnings Beat: General Motors reported an adjusted EPS of $10.60 for Q4, exceeding the upper end of its guidance range, indicating improved profitability amid its EV strategy shift, which is likely to drive further stock price appreciation.
- Dividend and Buyback Plan: The company announced a 20% increase in its quarterly dividend and a $6 billion share repurchase authorization, reflecting management's confidence in future cash flows, while reducing outstanding shares by 38% since 2022 enhances shareholder returns.
- EV Sales Growth: GM's EV sales surged 48% year-over-year, securing its position as the clear number two in EV production behind Tesla, indicating a strong foothold in the rapidly growing electric vehicle market with potential for further market share gains.
- Optimistic Future Outlook: Management projects 2026 EPS to reach between $11 and $13, representing a 13% growth over 2025, while software and services revenue is expected to rise by 40% to $7.5 billion, showcasing strong potential in high-margin business segments.
Continue Reading