General Motors (NYSE:GM) Issues Quarterly Earnings Results

General Motors (NYSE:GM) (TSE:GMM.U) announced its earnings results on Tuesday. The auto manufacturer reported $3.70 EPS for the quarter, beating analysts’ consensus estimates of $2.58 by $1.12, FiscalAI reports. The firm had revenue of $43.62 billion for the quarter, compared to analysts’ expectations of $43.60 billion. General Motors had a net margin of 1.46% and a return on equity of 14.72%. The company’s quarterly revenue was down .9% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.78 EPS. General Motors updated its FY 2026 guidance to 10.620-12.620 EPS.

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

• Q1 EBIT‑adjusted $4.3B; company raised full‑year EBIT‑adjusted guidance to $13.5B–$15.5B and adjusted EPS to $11.50–$13.50, with North America delivering a 10.1% EBIT‑adjusted margin (8.6% net of the tariff benefit).
• OnStar and digital services are scaling — Q1 recognized revenue >$750M (+20% YoY), management targets ~$3.1B for 2026 and ~13M subscribers by year‑end; Super Cruise momentum (1B hands‑free miles, ~850k subs expected) supports high‑margin recurring revenue growth.
• GM recorded an additional $1.1B of EV‑related charges in Q1 (≈$1B future cash impact); total EV cash charges since H2 2025 are $5.6B with most remaining cash payments expected in 2026, pressuring near‑term cash flow.
• The Supreme Court IEPA tariff decision provided a ≈$0.5B accounting benefit that helped raise guidance, but refund timing is uncertain and free cash flow guidance was left unchanged.
• Management emphasized disciplined inventory and incentives — dealer supply was lean (~47 days entering Q2) and planned downtime for full‑size pickup tooling constrained retail sales, but they expect to rebuild key product inventory without broad discounting.

General Motors Stock Up 0.3%

Shares of GM stock traded up $0.22 during mid-day trading on Thursday, hitting $76.84. The company’s stock had a trading volume of 3,709,981 shares, compared to its average volume of 7,944,799. The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.01 and a current ratio of 1.17. General Motors has a 52-week low of $44.72 and a 52-week high of $87.62. The stock has a market cap of $69.46 billion, a price-to-earnings ratio of 25.54, a PEG ratio of 0.43 and a beta of 1.34. The business has a 50-day moving average price of $76.59 and a 200 day moving average price of $76.29.

General Motors Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Investors of record on Friday, June 5th will be given a dividend of $0.18 per share. The ex-dividend date of this dividend is Friday, June 5th. This represents a $0.72 annualized dividend and a dividend yield of 0.9%. General Motors’s dividend payout ratio (DPR) is 29.03%.

General Motors News Roundup

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

• Positive Sentiment: Better‑than‑expected Q1 results and raised profit guidance — GM reported a sizable earnings beat and raised FY2026 adjusted EBIT guidance to $13.5–15.5B after tariff relief, boosting near‑term earnings visibility. GM earnings top estimates, company raises profit forecast
• Positive Sentiment: Tariff refund tailwind — GM expects roughly $500M in tariff refunds (industry reports suggest automakers are booking refunds collectively), which management says reduces gross tariff expense and lifts 2026 earnings. Automakers Anticipate $2.3 Billion From Tariff Refunds
• Positive Sentiment: Software/AI adoption accelerating — GM is rolling Google’s Gemini into ~4 million vehicles, expanding its connected‑services opportunity and recurring‑revenue potential. General Motors adds Google Gemini to 4 million vehicles
• Positive Sentiment: CapEx to protect profitable ICE business — GM announced ~ $1.4B (and related investments) into U.S./Canadian plants to support gas engines and transmissions, preserving cash flow from high‑margin trucks/SUVs during uncertain EV demand timing. GM earmarks over $1 billion toward gas-engine output
• Neutral Sentiment: Analyst reaction is mixed but constructive — Citi raised its price target to $108 after the Q1 beat, while other shops tweaked estimates; the street is re‑rating GM on stronger cash flow and buybacks. Citi Raises General Motors Price Target to $108
• Negative Sentiment: Rising geopolitical/fuel risks — GM flagged a new risk around geopolitical tensions and fuel‑price spikes that could pressure supply chains and demand for higher‑margin SUVs, which would hurt margins if conditions persist. Geopolitical tensions and fuel price spikes threaten GM
• Negative Sentiment: Small downward estimate tweaks — Erste Group trimmed FY2026/27 EPS forecasts modestly, reflecting caution on inflation and margin pressure; keep an eye on consensus revisions.

Institutional Trading of General Motors

A number of institutional investors have recently made changes to their positions in the stock. Kelleher Financial Advisors purchased a new position in shares of General Motors during the third quarter valued at approximately $29,000. Kemnay Advisory Services Inc. purchased a new stake in General Motors during the fourth quarter valued at $30,000. JPL Wealth Management LLC bought a new position in General Motors in the third quarter valued at about $32,000. Ameriflex Group Inc. boosted its position in General Motors by 2,483.3% in the fourth quarter. Ameriflex Group Inc. now owns 465 shares of the auto manufacturer’s stock worth $38,000 after purchasing an additional 447 shares during the last quarter. Finally, Mcguire Capital Advisors Inc. bought a new stake in shares of General Motors during the 4th quarter valued at about $44,000. Hedge funds and other institutional investors own 92.67% of the company’s stock.

General Motors announced that its board has approved a share buyback program on Tuesday, January 27th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the auto manufacturer to buy up to 8.1% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Analysts Set New Price Targets

GM has been the subject of a number of recent research reports. Jefferies Financial Group lifted their price target on shares of General Motors from $85.00 to $97.00 and gave the company a “hold” rating in a research report on Monday, February 2nd. Citigroup raised their target price on shares of General Motors from $105.00 to $108.00 and gave the company a “buy” rating in a research note on Wednesday. DZ Bank upgraded shares of General Motors from a “hold” rating to a “buy” rating and set a $98.00 target price for the company in a report on Thursday, January 29th. Barclays cut their price target on General Motors from $110.00 to $105.00 and set an “overweight” rating on the stock in a research note on Monday, March 30th. Finally, Evercore boosted their target price on General Motors from $85.00 to $95.00 and gave the stock an “outperform” rating in a report on Monday, February 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, General Motors presently has a consensus rating of “Moderate Buy” and an average target price of $92.00.

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.