General Motors (NYSE:GM) Releases Earnings Results, Beats Estimates By $0.25 EPS

General Motors (NYSE:GM) (TSE:GMM.U) released its earnings results on Tuesday. The auto manufacturer reported $2.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.26 by $0.25, Zacks reports. General Motors had a net margin of 1.62% and a return on equity of 12.29%. The business had revenue of $45.29 billion for the quarter, compared to analysts’ expectations of $45.81 billion. During the same period last year, the company earned $1.92 earnings per share. The company’s quarterly revenue was down 5.1% on a year-over-year basis. General Motors updated its FY 2026 guidance to 9.750-10.500 EPS.

Here are the key takeaways from General Motors’ conference call:

• GM delivered strong 2025 cash and earnings — EBIT adjusted $12.7 billion, adjusted automotive FCF $10.6 billion and $21.7 billion of year-end cash — and set 2026 guidance of EBIT adjusted $13–$15 billion while announcing a $6 billion repurchase authorization and a 20% dividend increase.
• Management took significant EV-related write-downs totaling $7.6 billion in Q3–Q4 (about $4.6 billion expected to be cash-settled), including discontinuing BrightDrop and shifting Orion to ICE, which will pressure near-term cash flows into 2026.
• GM materially managed tariff headwinds — gross tariffs were $3.1 billion in 2025 with >40% offset via go-to-market, footprint and cost actions, and management expects continued mitigation even as it models $3–$4 billion gross tariffs for 2026.
• Recurring software and services are scaling rapidly — OnStar reached 12 million subscribers (Super Cruise ~620k), deferred revenue is expected to grow to ~$7.5 billion by end-2026, and Super Cruise expansion should boost high?margin, recurring revenue.
• China turnaround gaining traction — new energy vehicles are ~50% of GM’s China sales and management says the portfolio is profitable across price points, supporting the expectation of profitable international results in 2026.

General Motors Stock Performance

Shares of General Motors stock opened at $86.39 on Wednesday. The company’s 50 day moving average price is $79.17 and its two-hundred day moving average price is $66.37. The firm has a market capitalization of $80.59 billion, a P/E ratio of 17.38, a P/E/G ratio of 0.75 and a beta of 1.31. General Motors has a fifty-two week low of $41.60 and a fifty-two week high of $87.31. The company has a debt-to-equity ratio of 1.40, a current ratio of 1.23 and a quick ratio of 1.06.

General Motors Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 19th. Shareholders of record on Friday, March 6th will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Friday, March 6th. This is a positive change from General Motors’s previous quarterly dividend of $0.15. This represents a $0.72 annualized dividend and a yield of 0.8%. General Motors’s payout ratio is presently 12.07%.

Insider Transactions at General Motors

In other news, CAO Christopher Hatto sold 7,724 shares of the firm’s stock in a transaction dated Wednesday, November 12th. The stock was sold at an average price of $72.00, for a total transaction of $556,128.00. Following the completion of the transaction, the chief accounting officer directly owned 12,007 shares in the company, valued at $864,504. This trade represents a 39.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.54% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On General Motors

Several hedge funds and other institutional investors have recently bought and sold shares of GM. Equitable Holdings Inc. boosted its position in General Motors by 1.8% in the third quarter. Equitable Holdings Inc. now owns 18,538 shares of the auto manufacturer’s stock worth $1,130,000 after purchasing an additional 324 shares during the last quarter. Larson Financial Group LLC raised its stake in shares of General Motors by 8.2% during the 3rd quarter. Larson Financial Group LLC now owns 4,783 shares of the auto manufacturer’s stock worth $292,000 after purchasing an additional 364 shares during the period. Coldstream Capital Management Inc. raised its stake in shares of General Motors by 2.0% during the 3rd quarter. Coldstream Capital Management Inc. now owns 20,790 shares of the auto manufacturer’s stock worth $1,268,000 after purchasing an additional 411 shares during the period. PFG Advisors boosted its holdings in shares of General Motors by 9.8% in the 3rd quarter. PFG Advisors now owns 4,778 shares of the auto manufacturer’s stock worth $291,000 after buying an additional 425 shares during the last quarter. Finally, Kelleher Financial Advisors bought a new position in General Motors during the third quarter valued at about $29,000. 92.67% of the stock is owned by institutional investors.

General Motors declared that its Board of Directors has approved a stock buyback plan on Tuesday, January 27th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the auto manufacturer to buy up to 8.1% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of brokerages have recently commented on GM. Argus set a $78.00 price objective on General Motors in a report on Thursday, October 23rd. Wells Fargo & Company lifted their price target on shares of General Motors from $46.00 to $48.00 and gave the company an “underweight” rating in a report on Tuesday, December 9th. Piper Sandler set a $98.00 target price on shares of General Motors and gave the stock an “overweight” rating in a research report on Thursday, January 8th. Weiss Ratings reissued a “hold (c)” rating on shares of General Motors in a research note on Thursday, January 22nd. Finally, HSBC boosted their target price on General Motors from $48.00 to $75.00 and gave the company a “hold” rating in a research note on Tuesday, January 13th. Three investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $80.27.

More General Motors News

Here are the key news stories impacting General Motors this week:

• Positive Sentiment: Adjusted Q4 earnings beat expectations ($2.51 vs. ~$2.20 consensus), driven by stronger demand for SUVs and pickup trucks — supports near-term profitability narrative. Reuters: GM core profit rises
• Positive Sentiment: Board raised the quarterly dividend 20% to $0.18 and approved a $6.0 billion share repurchase program — direct positives for EPS support and shareholder return. PR Newswire: GM releases 2025 results
• Positive Sentiment: Market reaction to the beat and capital return moves pushed the stock toward record highs as traders priced in near-term cash-generation strength. Schaeffer’s: Stock surges
• Neutral Sentiment: GM Financial reported mixed results with higher full-year net income but some quarter-to-quarter variability and an impairment — adds complexity but limited direct market-moving surprise. BusinessWire: GM Financial results
• Neutral Sentiment: Operational steps to improve EV ownership experience (myBrand apps integration with Electrify America) are incremental positives for EV retention but not a major near-term revenue driver. PR Newswire: Electrify America integration
• Negative Sentiment: GM recorded a large one-time EV-related charge (~$7.2B) that produced a Q4 GAAP net loss and underscores risks around the company’s EV strategy and demand assumptions. MarketWatch: $7.2B EV charge
• Negative Sentiment: FY2026 EPS guidance (9.75–10.50) came in below Street consensus (~11.9), signaling cautious outlook and limiting upside for multiple-quarter estimates. PR Newswire: 2026 guidance
• Negative Sentiment: Revenue was down ~5.1% YoY and management flagged tariff exposure ($3–4B) and slower EV adoption — pressure on margins and growth assumptions. WSJ: EVs weighed on bottom line
• Negative Sentiment: Labor payouts: UAW hourly workers will receive profit-sharing checks (one-time ~$10,500) while salaried global bonuses are reduced — mixed implications (near-term cash outlay vs. cost discipline). MLive: Workers getting profit-sharing

General Motors Company Profile

General Motors Company (NYSE: GM) is a global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services. Founded in 1908, GM has long been one of the world’s largest automakers and has evolved into a multi-brand company whose primary marques include Chevrolet, GMC, Cadillac and Buick. Beyond vehicle manufacturing, GM’s operations encompass vehicle financing, connected services and advanced mobility initiatives.

GM develops and markets a broad portfolio of products and technologies, including internal-combustion and battery-electric vehicles, vehicle components and on-board connectivity services.