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

General Motors (NYSE:GM) (TSE:GMM.U) announced its quarterly earnings results on Tuesday. The auto manufacturer reported $2.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.26 by $0.25, Zacks reports. The company had revenue of $45.29 billion during the quarter, compared to analyst estimates of $45.81 billion. General Motors had a net margin of 1.46% and a return on equity of 14.72%. The firm’s revenue was down 5.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.92 EPS. 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 Trading Down 1.7%

Shares of NYSE:GM opened at $84.95 on Thursday. The company’s 50-day moving average price is $79.49 and its two-hundred day moving average price is $66.50. General Motors has a one year low of $41.60 and a one year high of $87.31. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.17 and a quick ratio of 1.06. The stock has a market capitalization of $79.24 billion, a PE ratio of 17.09, a price-to-earnings-growth ratio of 0.80 and a beta of 1.31.

General Motors Increases Dividend

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

Insider Buying and Selling at General Motors

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

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Kelleher Financial Advisors bought a new stake in shares of General Motors during the 3rd quarter worth approximately $29,000. JPL Wealth Management LLC acquired a new position in General Motors during the third quarter worth $32,000. WFA of San Diego LLC bought a new stake in General Motors during the second quarter worth $62,000. Triumph Capital Management acquired a new stake in General Motors in the third quarter valued at $66,000. Finally, Sunbelt Securities Inc. grew its position in shares of General Motors by 527.1% in the 3rd quarter. Sunbelt Securities Inc. now owns 2,126 shares of the auto manufacturer’s stock valued at $130,000 after acquiring an additional 1,787 shares during the period. 92.67% of the stock is currently owned by institutional investors.

Trending Headlines about General Motors

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

• Positive Sentiment: Q4 adjusted EPS beat expectations (reported $2.51 vs. ~ $2.20 consensus), showing core profitability strength. MarketBeat: Q4 results
• Positive Sentiment: Board approved a $6.0 billion share repurchase program and raised the quarterly dividend 20%, boosting capital-return prospects and signaling management confidence. PR Newswire: Buyback & dividend
• Positive Sentiment: Multiple brokerages raised price targets (UBS, RBC, Mizuho), reflecting bullish analyst reactions that may support the stock. The Fly: UBS raise The Fly: RBC raise The Fly: Mizuho raise
• Neutral Sentiment: GM’s software/subscription business is growing (nearly $2B revenue), a longer‑term upside driver but not an immediate offset to near‑term EV headwinds. Business Insider: subscriptions
• Neutral Sentiment: Positive value/long‑term coverage (Zacks, Seeking Alpha) highlights attractive valuation and buybacks as a catalyst for longer‑horizon investors. Zacks: value thesis
• Negative Sentiment: GM took a large EV-related write-down (~$7.2B) that produced a meaningful GAAP loss for the quarter, pressuring near-term headline earnings and investor sentiment. MarketWatch: EV charge
• Negative Sentiment: FY‑2026 EPS guidance (9.75–10.50) came in below consensus (~11.9), a conservative outlook that likely trimmed upside despite the EPS beat. PR Newswire: guidance
• Negative Sentiment: Revenue slightly missed Street expectations and management flagged slower EV adoption and tariff-related costs, which add near‑term operational headwinds. MSN: revenue miss CNBC: tariff costs

General Motors announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, January 27th that allows the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization allows the auto manufacturer to repurchase up to 8.1% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on GM shares. Royal Bank Of Canada lifted their price objective on General Motors from $92.00 to $107.00 and gave the company an “outperform” rating in a report on Wednesday. JPMorgan Chase & Co. raised their target price on shares of General Motors from $85.00 to $100.00 and gave the stock an “overweight” rating in a report on Wednesday, January 21st. HSBC lifted their price target on shares of General Motors from $48.00 to $75.00 and gave the company a “hold” rating in a research note on Tuesday, January 13th. Barclays set a $110.00 price objective on shares of General Motors in a research report on Wednesday. Finally, Benchmark reaffirmed a “buy” rating on shares of General Motors in a research report on Wednesday, October 22nd. Three research 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 issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $85.14.

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.