General Motors (GM) Has Fallen 2.9% Since Its Last Earnings Release: Is a Recovery Possible?

General Motors: Recent Performance and Outlook

Approximately one month has passed since General Motors (GM) released its last earnings report. During this period, the company's stock has declined by about 2.9%, trailing behind the S&P 500's performance.

As investors look ahead to the next earnings announcement, questions remain about whether this downward trend will persist or if GM is poised for a rebound. To better understand the current situation, let's review the latest earnings results and examine how the market and analysts have responded.

Q4 2025 Earnings: GM Exceeds Profit Expectations

In the fourth quarter of 2025, General Motors posted adjusted earnings of $2.51 per share, surpassing the consensus estimate of $2.20. This outperformance was driven by stronger-than-anticipated revenue from GM North America, GM International, and GM Financial. Compared to the previous year’s fourth quarter, earnings per share rose from $1.92. However, revenue came in at $45.29 billion, slightly below the expected $45.4 billion and down from $47.71 billion a year earlier.

The company reported adjusted EBIT (earnings before interest and taxes) of $2.84 billion, an increase from $2.51 billion in the same period last year. GM maintained an 8.6% market share, consistent with the prior year’s quarter.

Performance by Segment

• GM North America (GMNA): The segment generated $36.89 billion in net revenue, a decrease from $39.5 billion in the fourth quarter of 2024, but slightly above internal projections. Wholesale vehicle sales totaled 780,000 units, down from 876,000 units the previous year and below estimates. Adjusted EBIT for GMNA was $2.24 billion, a slight decline from $2.27 billion a year ago.
• GM International (GMI): GMI reported $4.03 billion in net revenue, up from $3.99 billion a year earlier and exceeding expectations due to higher deliveries. Wholesale sales reached 157,000 units, a decrease from 163,000 units but above forecasts. Operating profit rose to $278 million from $221 million, outperforming projections.
• GM Financial: This segment achieved $4.3 billion in net revenue, up from $4.11 billion last year and ahead of estimates. Adjusted EBT (earnings before taxes) was $609 million, down from $719 million a year ago and below expectations.

Financial Health

As of December 31, 2025, GM held $20.94 billion in cash and cash equivalents. The company’s long-term automotive debt stood at $15.52 billion. Operating activities generated $5.61 billion in net automotive cash during the quarter. Adjusted automotive free cash flow reached $2.76 billion, up from $1.82 billion in the same period last year.

2026 Guidance

For fiscal year 2026, General Motors anticipates net income attributable to shareholders between $10.3 billion and $11.7 billion, a significant increase from $2.7 billion in 2025. Adjusted EBIT is projected to range from $13 billion to $15 billion, compared to $12.7 billion in 2025. The company expects automotive operating cash flow between $19 billion and $23 billion, up from $18.7 billion, and adjusted free cash flow between $9 billion and $11 billion, compared to $10.6 billion previously. Adjusted earnings per share are forecasted to be in the $11 to $13 range, up from $10.60 in 2025.

Recent Estimate Revisions

Over the past month, analyst estimates for GM have generally moved lower.

VGM Ratings

Currently, General Motors holds a solid Growth Score of B. However, its Momentum Score is a C, indicating some lag in this area. On the value front, the stock earns an A, placing it among the top performers for value-focused strategies.

Overall, GM’s combined VGM Score is an A, making it a strong choice for investors who do not prioritize a single investment style.

Future Outlook

Analyst projections for GM have been revised downward, suggesting a less optimistic near-term outlook. The stock is currently rated as a Zacks Rank #3 (Hold), indicating expectations for average performance in the coming months.