General Motors (GM) posted a big win Tuesday, beating Wall Street’s fourth-quarter earnings target with $2.51 per share, higher than the $2.20 estimate.
Revenue landed at $45.29 billion, just under the $45.8 billion analysts expected, and the GM stock has surged by more than 4% in premarket trading after the numbers dropped.
The company also told investors to brace for strong full-year performance in 2026. The forecast includes $10.3 billion to $11.7 billion in net income, $13 billion to $15 billion in EBIT-adjusted earnings, and $11 to $13 EPS. “We are confident in our ability to deliver another strong year,” said Mary Barra, GM’s CEO and Chair.
GM reports losses tied to EV write-downs and legal charges
Despite the earnings beat, GM still recorded a net loss of $3.3 billion for Q4, mostly because of $7.2 billion in special charges. The bulk of that had already been flagged earlier this month, but the final tally included some new hits. Legal issues tied to OnStar and airbags cost the company $357 million, the Cruise robotaxi shutdown cost $133 million, and the headquarters move added $5 million to the bill.
The fourth quarter still saw EBIT-adjusted earnings of $2.8 billion, and the company stressed this is all part of reworking its vehicle lineup and cost structure.
GM is backing off its aggressive all-electric push and cutting losses in international regions, especially in China, where the automaker booked a $316 million equity loss. That’s still better than the $4.4 billion hit it took there in 2024.
While GM is reevaluating its EV plans, it isn’t holding back on shareholder payouts. The board approved a 20% boost to its quarterly dividend, raising it to 18 cents per share, and gave the green light for a new $6 billion stock buyback. “We’re committed to delivering value to our shareholders,” Barra said.
Company outlines new guidance and breaks down regional performance
The 2026 outlook shows GM aiming high. Projected EPS of $11 to $13 lines up with the $11.73 consensus from LSEG. Spending is expected to hit between $10 billion and $12 billion.
In comparison, last year’s performance was much lower, with $2.7 billion in net income, $3.27 EPS, and $12.7 billion EBIT-adjusted. Automotive free cash flow for 2025 was $10.6 billion.
North America stayed at the top of GM’s regional breakdown. But profits there dropped 28.1% last year to $10.45 billion, and fourth-quarter earnings alone fell 1.3% to $2.24 billion.
Global numbers weren’t all bad. Adjusted earnings from international markets hit $737 million, up $434 million from the previous year. That includes better results from South Korea, Brazil, and the Middle East.
Share count has also slimmed. GM finished 2025 with 904 million shares outstanding, compared to 995 million the year before, and down from 1.2 billion in 2023. The continued repurchases are aimed at pushing the stock price up further by lowering share volume.
Investors are now watching how the 2026 plan plays out. The company is betting on tighter operations and less EV exposure while leaning into shareholder rewards. GM isn’t backing away from the tough calls, and they’re making it clear with the numbers.
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