Is GM Set for 14th Straight EPS Beat in Q4? How to Play the Stock Now

General Motors GM is slated to release fourth-quarter 2025 results on Jan. 27, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s EPS and revenues is pegged at $2.19 and $45 billion, respectively.

The earnings estimate for the to-be-reported quarter has moved up by a cent over the past 30 days. In the year-ago period, the company reported EPS of $1.92. The Zacks Consensus Estimate for quarterly revenues suggests a 6% decline from the year-ago quarter’s figure.

For full-year 2025, the Zacks Consensus Estimate for GM’s revenues is pegged at $185 billion, suggesting a decline of 1% year over year. The consensus mark for full-year EPS is $10.31, calling for a 2.7% year-over-year contraction. However, the consensus mark for 2026 EPS points to 14.5% growth from the projected 2025 levels.

Notably, General Motors surpassed earnings estimates in each of the past 13 quarters. And our proven model predicts an earnings beat for the company this time around as well.

General Motors Company Price and EPS Surprise

General Motors Company price-eps-surprise | General Motors Company Quote

The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

General Motors has an Earnings ESP of +16.01% and a Zacks Rank #1.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

General Motors delivered 703,001 vehicles in the United States in the fourth quarter of 2025, representing a 7% year-over-year decline that broadly mirrored overall industry trends. Electric vehicle sales dropped 43% year over year to 25,219 units, following record EV volumes in the third quarter due to accelerated purchases ahead of the federal tax credit expiration.

Other auto giants like Ford F and Tesla TSLA also posted sharp declines in EV sales for the three months ending in December. Ford and Tesla’s EV sales dropped 52% and 16%, respectively.

The Zacks Consensus Estimate for revenues from the GMNA (General Motors North America) unit is pegged at roughly $37 billion, implying a decrease of 7% year over year. However, the consensus mark for the segment’s EBIT is $2.3 billion, up from $2.2 billion recorded in the fourth quarter of 2024.

But even with weaker fourth-quarter sales in the United States, General Motors emerged as the top-selling automaker in the United States in 2025. Full-year deliveries rose 5.5% to 2.85 million units, driven by gains across all major brands — Chevrolet, Cadillac, GMC and Buick.

GM’s deliveries in China totaled roughly 541,000 units in the fourth quarter of 2025, down from 600,000 units in the corresponding quarter of 2024. However, full-year 2025 deliveries in the country were 1.9 million vehicles, up 2.3% year over year. This was largely driven by strong demand for new energy vehicles, which rose more than 22% year over year in 2025.

Encouragingly, General Motors has overhauled operations in China by rightsizing, streamlining dealer networks, cutting costs, and rolling out new products. These efforts have paid off and the company is expected to have delivered full-year profitability in China.

Investors should also note that GM will record about $6 billion in special charges in fourth-quarter 2025 due to its EV rollback. These one-time expenses will drag down net income but won’t affect adjusted earnings.

General Motors’ Price Performance & Valuation

Over the past six months, shares of GM have gained more than 50%, outperforming the industry as well as peers like Tesla and Ford.

6-Month Price Comparison 

Despite the rally, GM appears undervalued now. The company is trading at a forward earnings multiple of 6.77, way lower than the industry.

GM is Worth Buying Now

GM has held the U.S. auto sales crown for decades, losing the top spot once in 2021, when Toyota navigated semiconductor shortages and supply-chain disruptions more effectively. Despite weaker sales in the final quarter of 2025, General Motors expects demand to remain resilient across price points, supporting momentum into 2026. The company has readjusted its strategy by scaling back its EV capacity, which no longer matches demand. And with that, it is basically shifting resources toward higher-margin vehicles and proven revenue drivers.

Additionally, General Motors is seeing strong traction in its software and services business, which is emerging as an important growth engine. The company is recording strong revenues from Super Cruise, OnStar and other software products this year. GM’s strong automotive liquidity of around $36 billion and ongoing buybacks are other positives.The company ended the quarter with $2.8 billion remaining under its buyback authorization.

With the company poised to extend its earnings beat streak in fourth-quarter 2025, the stock could see further upside. Backed by strong fundamentals, GM looks like a compelling buy at current levels.

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This article originally published on Zacks Investment Research (zacks.com).

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