General Motors (NYSE:GM) reported upbeat earnings for the fourth quarter on Tuesday, with adjusted earnings per share of $2.51 (+30.4% year over year), beating the analyst consensus estimate of $2.20, and sales of $45.287 billion missed the Street view of $45.804 billion.
General Motors forecasts adjusted earnings of $9.75 to $10.50 a share for fiscal 2026, below Wall Street expectations of $11.73.
Analyst View
RBC Capital analyst Tom Narayan raised the price forecast from $92 to $107, while maintaining an Outperform rating.
The analyst expects commodity and onshoring pressures to be partly offset by regulatory benefits, warranty improvements, narrowing EV losses, and lower tariffs from USMCA.
For fiscal 2026, Narayan estimates this could improve adjusted EBIT by an additional $500 million, bringing total tariff-related gains to $600 million year over year.
The analyst estimates the fiscal 2026 adjusted EBIT estimate exceeds consensus once factoring in a USMCA resolution, which guidance does not reflect.
The company remains well-positioned to manage EV demand slowdowns while retaining production flexibility to scale if demand rebounds, adds the analyst.
Also, Narayan projects strong pricing discipline and ~$6 billion in shareholder returns (~8% of market cap) for the company.
The analyst raised EPS estimates to $13.07 (from $12.20) and revenue estimates to $169 billion (from $171 billion) for fiscal 2026.
GM Price Action: General Motors shares were down 1.63% at $84.97 at the time of publication on Wednesday. The stock is approaching its 52-week high of $87.31, according to Benzinga Pro data.
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