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General Motors (GM) Down 2.9% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for General Motors (GM - Free Report) . Shares have lost about 2.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is General Motors due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for General Motors Company before we dive into how investors and analysts have reacted as of late.
General Motors Q4 Earnings Surpass Expectations, Rise Y/Y
General Motors 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, General Motors has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, General Motors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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General Motors (GM) Down 2.9% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for General Motors (GM - Free Report) . Shares have lost about 2.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is General Motors due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for General Motors Company before we dive into how investors and analysts have reacted as of late.
General Motors Q4 Earnings Surpass Expectations, Rise Y/Y
General Motors 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, General Motors has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, General Motors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.