General Motors Q4 revenue misses estimates

Overview

• Automaker's Q4 revenue missed analyst expectations, but adjusted EPS beat estimates

• Q4 net loss driven by EV capacity realignment and policy changes

• Company declared a 20% higher dividend and $6.0 bln share repurchase

Outlook

• GM expects 2026 net income between $10.3 bln and $11.7 bln

• Company forecasts 2026 EBIT-adjusted of $13.0 bln to $15.0 bln

• GM anticipates 2026 capital spending of $10.0 bln to $12.0 bln

Result Drivers

• EV CAPACITY REALIGNMENT - GM's Q4 net income was impacted by a $7.2 bln charge due to realignment of EV capacity and anticipated declines in EV demand

• POLICY CHANGES - U.S. policy changes, including end of consumer incentives and relaxed emissions regulations, affected GM's EV strategy

• ADJUSTED EBIT BEAT - GM's Q4 adjusted EBIT of $2.8 bln exceeded analyst expectations, indicating operational resilience

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the auto & truck manufacturers peer group is "buy"

• Wall Street's median 12-month price target for General Motors Co is $85.00, about 7% above its January 26 closing price of $79.43

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nPn4XRVJMa

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