GM Beats Q4 Earnings but Posts Net Loss on EV Write-Downs and Legal Charges

General Motors surpassed Wall Street's fourth-quarter earnings expectations, reporting revenue of $45.29 billion—slightly below the $45.8 billion analyst forecast. The automaker's stock surged over 4% in premarket trading following the announcement. CEO Mary Barra projected robust full-year performance for 2026, forecasting net income between $10.3 billion and $11.7 billion.

Despite the earnings beat, GM recorded a $3.3 billion net loss for Q4, driven by $7.2 billion in special charges. These included $357 million for OnStar and airbag legal issues, $133 million for the Cruise robotaxi shutdown, and a $5 million hit from headquarters restructuring. Adjusted EBIT stood at $2.8 billion as the company restructures its vehicle lineup and cost base.

GM is scaling back its aggressive EV push and cutting losses in international markets, particularly China, where it took a $316 million equity loss—a significant improvement over 2024's $4.4 billion hit. The strategic pivot reflects broader industry recalibration amid shifting demand and regulatory landscapes.