GM Crushes Q4 Earnings: General Motors Beats Wall Street Targets in Tuesday Surge
GM just handed Wall Street a surprise—and a lesson.
### Beating the Street, Again
The numbers don't lie. While the analysts were busy with their spreadsheets, General Motors was busy delivering. The automaker's fourth-quarter performance didn't just meet expectations—it blew right past them. It's the kind of beat that makes you wonder if the suits on the Street are looking at the same data as the engineers in Detroit.
### The Engine Behind the Numbers
Forget the noise. This isn't about vague promises or future roadmaps. It's about hard results posted in a quarter where many were bracing for impact. GM's execution turned forecasts into footnotes. A classic case of the factory floor outsmarting the forecast model—always a satisfying sight for anyone tired of financial guesswork.
So, while traditional finance celebrates a single earnings beat, the real story is about execution in a complex world. It's a reminder that sometimes, the most disruptive technology is simply doing the core job better than anyone predicted. Now, about those analyst downgrades from last month…
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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