General Motors Q4 Earnings Surpass Expectations, Rise Y/Y

General Motors GM reported fourth-quarter 2025 adjusted earnings of $2.51 per share, which beat the Zacks Consensus Estimate of $2.20. Higher-than-expected revenues from GM North America (GMNA), GM International (GMI) and GM Financial segments led to the outperformance. The bottom line also rose from the year-ago quarter’s $1.92. Revenues of $45.29 billion missed the Zacks Consensus Estimate of $45.4 billion and fell from $47.71 billion recorded in the year-ago period.

The U.S. auto giant recorded adjusted earnings before interest and taxes (EBIT) of $2.84 billion, higher than $2.51 billion in the prior-year quarter. The automaker’s share in the GM market was 8.6% in the reported quarter, the same as the year-ago quarter.

General Motors Company Price, Consensus and EPS Surprise

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

Segmental Performance of GM

GMNA generated net revenues of $36.89 billion, down from $39.5 billion recorded in the corresponding period of 2024. The figure, however, outpaced our model’s projection of $36.85 billion. Wholesale vehicle sales in the GMNA unit totaled 780,000 units, down from 876,000 units reported in the year-ago quarter. The figure missed our estimate of 794,000 units. The segment’s adjusted EBIT totaled $2.24 billion, down from $2.27 billion recorded in the year-earlier period. The metric also missed our estimate of $2.3 billion.

GMI net revenues in the reported quarter amounted to $4.03 billion, up from the year-ago quarter’s $3.99 billion. The metric also outpaced our expectation of $3.84 billion on higher-than-expected deliveries. The segment’s wholesale vehicle sales of 157,000 units decreased from 163,000 units in the year-ago quarter but topped our forecast of 147,000 units. GMI reported an operating profit of $278 million, up from $221 million reported in the year-ago period and outpaced our estimate of $123.7 million. 

GM Financial generated net revenues of $4.3 billion in the quarter, which increased from $4.11 billion recorded in the year-ago period and surpassed our prediction of $4.12 billion. The segment recorded an EBT-adjusted operating profit of $609 million, down from $719 million recorded in the year-ago period. The metric also missed our prediction of $700.1 million.

GM’s Financial Position

General Motors had cash and cash equivalents of $20.94 billion as of Dec. 31, 2025. The long-term automotive debt at the end of the quarter was $15.52 billion. Net automotive cash provided by operating activities amounted to $5.61 billion during the quarter under review. The company recorded an adjusted automotive free cash flow of $2.76 billion in the fourth quarter of 2025, up from $1.82 billion generated in the year-ago quarter.

General Motors Provides FY26 Guidance

For 2026, GM expects net income attributable to stockholders in the range of $10.3-$11.7 billion compared with $2.7 billion reported in 2025. It expects adjusted EBIT in the range of $13-$15 billion compared with $12.7 billion reported in 2025. Automotive operating cash flow is expected to be between $19 billion and $23 billion compared with $18.7 billion reported in 2025, while adjusted automotive free cash flow is projected in the band of $9-$11 billion compared with $10.6 billion reported in 2025. Adjusted EPS is estimated in the range of $11-$13 compared with $10.60 reported in 2025.

GM’s Zacks Rank & Other Key Picks

General Motors carries a Zacks Rank #2 (Buy) at present.

Some other top-ranked stocks in the auto space are REV Group, Inc. REVG, Ford Motor Company F and PHINIA Inc. PHIN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for REVG’s fiscal 2026 sales and earnings implies year-over-year growth of 8.1% and 37.8%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 20 cents and 26 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. EPS estimates for 2025 and 2026 have improved 6 cents each in the past seven days.

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. EPS estimates for 2025 have improved by 47 cents in the past 60 days. EPS estimates for 2026 have improved by 52 cents in the past 30 days. 

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

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