Core Viewpoint - General Motors reported strong profitability and provided a better-than-expected outlook, despite missing revenue expectations in the fourth quarter [1][2]. Financial Performance - GM's adjusted EPS of $10.60 exceeded the high end of its own guidance range, and EBIT and automotive free cash flow were better than expected, even after accounting for one-time charges related to its EV strategy [5][6]. - The company announced a 20% increase in the quarterly dividend and a new $6 billion share repurchase authorization, which represents about 8% of its outstanding shares at the current price [6]. Future Outlook - Management's initial guidance for 2026 projects earnings of $11 to $13 per share, indicating a potential 13% growth over 2025 [7]. - CEO Mary Barra highlighted that improvements in battery technology will enable quicker profitability for electric vehicles, with EV sales increasing by 48% year over year [8]. - The company anticipates a 40% rise in deferred revenue from software and services to $7.5 billion by 2026, which are high-margin revenue streams [9]. Competitive Position - GM's stock has risen over 50% in the past year but remains relatively cheap, trading at just 7 times the company's 2026 EPS guidance [11]. - The company is executing its electric vehicle strategy effectively, showing a clear path to profitability, and plans to launch advanced features like eyes-off autonomous driving by 2028 [12]. Investment Potential - GM's strong performance and future growth prospects make it a significant position in investment portfolios, with expectations for continued upside potential [13].

Core Viewpoint - General Motors (GM) is predicted to reach a stock price of $200 by the end of 2030, requiring a 130% increase from its current price of approximately $87, translating to an annual growth rate of about 18% [1][2]. Group 1: Stock Valuation and Performance - GM currently trades at about seven times forward earnings, indicating a potential undervaluation given the company's strong performance and ongoing buybacks [2]. - The company has demonstrated resilience during economic downturns, such as the pandemic and inflation surge, suggesting a strong growth outlook [4]. Group 2: Catalysts for Growth - Major catalysts for GM's stock price increase include continued buybacks, which could reduce the outstanding share count by approximately 8% this year, potentially leading to a one-third reduction by 2030 [5]. - The electric vehicle (EV) segment, while currently unprofitable, is expected to achieve profitability sooner than anticipated, supported by CEO Mary Barra's insights on EV adoption trends [5]. - GM's software revenue, particularly from services like OnStar and Super Cruise, is projected to grow by 40% to $7.5 billion this year, representing a high-margin revenue stream that could significantly enhance profitability [5].

Core Insights - General Motors (GM) is significantly expanding its software and subscription business, generating $2 billion in software revenue over the past nine months and securing $5 billion in future subscriptions from customers [1][2]. Subscription Growth - GM has reached 11 million subscribers for its OnStar safety system, marking a 34% increase from the previous year, and an additional 500,000 customers are subscribed to the Super Cruise hands-free driver-assistance system [2][4]. - The subscription services, while currently a small portion of GM's total revenue of $45.29 billion in the last quarter, offer higher profit margins compared to traditional car sales [2][3]. Profitability and Strategy - GM's software business retains approximately 70 cents of every dollar earned, a notable profitability level in the auto industry where car sales typically yield only 4 to 10 cents per dollar [3]. - The company plans to enhance its software and services, such as OnStar and Super Cruise, to drive greater revenue during and after vehicle sales, indicating a strong growth opportunity with attractive margins [3][4]. Software-Defined Vehicles - As vehicles become more software-defined, GM aims to introduce new digital experiences through updates and optional services rather than relying solely on hardware changes [5][6]. - The subscription model is designed to ease customer adoption, with OnStar Basics included at no extra cost for newer GM vehicles, while paid subscriptions for services like Connect Plus and Super Cruise are available at monthly rates [6][7]. Competitive Landscape - Other automakers, including Ford and Tesla, are also expanding their subscription services, indicating a broader industry trend towards monetizing software and services post-sale [8][9]. - Wall Street responded positively to GM's earnings report, with the company's stock rising 8.8% following the announcement, reflecting investor confidence in the subscription model's potential [9][10].

General Motors Company (NYSE:GM) Q4 2025 Earnings call January 27, 2026 08:30 AM ET Company ParticipantsAndrew Percoco - Executive Director of Equity ResearchAshish Kohli - VP of Investor RelationsJames Picariello - Director and Head of U.S. Autos ResearchJoe Spak - Managing DirectorMary Barra - Chair and CEOPaul Jacobson - EVP and CFOSusan Sheffield - President and CEOConference Call ParticipantsColin Langan - Automotive & Mobility AnalystDan Levy - Senior Equity Research AnalystEmmanuel Rosner - Managing ...

GM earnings beat shines through EV pullback and China restructuring | Invezz false### Choose your country### Choose preferred languagePopular languagesAll available languages# GM earnings beat shines through EV pullback and China restructuringWritten byDiya P.Edited byUtkarsh R.Written on Jan 27, 2026Reading time 3 minutesGeneral Motors ended the fourth quarter with stronger-than-expected earnings.The Detroit automaker beat Wall Street profit estimates, lifted shareholder payouts, and issued guidance pointi ...

Core Insights - General Motors (GM) is expected to report its fourth-quarter 2025 results on January 27, with an EPS estimate of $2.19 and revenues of $45 billion, reflecting a 6% decline from the previous year [1][2] - The full-year 2025 revenue estimate is $185 billion, indicating a 1% year-over-year decline, while the EPS is projected at $10.31, a 2.7% contraction from the previous year [2] - GM has consistently surpassed earnings estimates for the past 13 quarters, with a positive Earnings ESP of +16.01% and a Zacks Rank of 1, indicating strong buy potential [3] Sales Performance - In Q4 2025, GM delivered 703,001 vehicles in the U.S., a 7% decline year-over-year, mirroring industry trends, with electric vehicle (EV) sales dropping 43% to 25,219 units [5][6] - Despite the decline in Q4, GM was the top-selling automaker in the U.S. for 2025, with full-year deliveries increasing by 5.5% to 2.85 million units [9] - In China, GM's Q4 deliveries were approximately 541,000 units, down from 600,000 units in Q4 2024, but full-year deliveries rose 2.3% to 1.9 million vehicles, driven by a 22% increase in new energy vehicle demand [10] Financial Outlook - The GM North America (GMNA) unit's revenue estimate for Q4 is around $37 billion, a 7% decrease year-over-year, while EBIT is expected to rise to $2.3 billion from $2.2 billion in Q4 2024 [8] - GM anticipates recording about $6 billion in special charges in Q4 2025 due to its EV rollback, which will impact net income but not adjusted earnings [11] - GM's stock has gained over 50% in the past six months, outperforming industry peers, and is currently trading at a forward earnings multiple of 6.77, indicating it may be undervalued [12][15] Strategic Adjustments - GM is adjusting its strategy by scaling back EV capacity to align with demand, focusing on higher-margin vehicles and proven revenue drivers [17] - The company is experiencing growth in its software and services business, with strong revenues from products like Super Cruise and OnStar [18] - GM's automotive liquidity stands at approximately $36 billion, with ongoing buybacks, enhancing its financial position [18]

Core Insights - General Motors (GM) has significantly outperformed Ferrari in the stock market over the past six months, with GM shares rising 59.2% while Ferrari's shares have dropped 32.8% [4] - GM's strategy focuses on a diverse range of vehicles catering to various consumer needs, while Ferrari specializes in high-end, exclusive sports cars [3] General Motors Overview - In Q3 2025, GM reported net revenues of $48.59 billion, a slight decrease from $48.76 billion in the same quarter of the previous year, but maintained a 17% market share in the U.S., up 50 basis points year-over-year [8] - GM's vehicle sales in China increased by 2.3% year-over-year in Q4, marking the third consecutive quarter of growth, with strong performance in NEV and BEV sales for 11 straight quarters [10] - The company generated $2 billion in software revenues in the first nine months of 2025, with deferred revenues rising 90% year-over-year and a growing subscriber base for its software services [11] - The Zacks Consensus Estimate for GM's 2026 EPS indicates a year-over-year growth of 15%, with recent improvements in EPS estimates for both 2025 and 2026 [12] Ferrari Overview - Ferrari reported net revenues of $2.06 billion in Q3 2025, a 14.2% increase from the same quarter in 2024, but faced a decline in shipments in key markets like Mainland China and the Americas [13][14] - The company has adjusted its long-term revenue target to approximately €9 billion ($10.4 billion) by 2030, with a reduced expectation that fully electric models will only make up 20% of its portfolio [15] - Ferrari's brand may not align with the evolving preferences of luxury car buyers in China, particularly younger consumers who prioritize advanced technology and sustainability [14] Valuation Comparison - GM is currently trading at a more attractive EV/EBITDA multiple compared to Ferrari, indicating a more reasonable pricing relative to its earnings before interest, taxes, depreciation, and amortization [16] Conclusion - GM is better positioned than Ferrari due to its broader scale, stronger growth momentum, and alignment with industry trends, while Ferrari faces challenges such as slowing growth and limited exposure to electric vehicles [17][18]

Under the order, General Motors and its subscription-based telematics service OnStar are prohibited from sharing certain consumer data with consumer reporting agencies. ...

Key Takeaways General Motors led U.S. auto sales in 2025, lifting deliveries 5.5% to 2.85 million vehicles.GM extended full-size pickup leadership, sold 940,000 units, and ranked No. 2 in U.S. EV sales.Fourth-quarter sales fell 7%, but GM expects resilient demand in 2026 despite EV normalization.General Motors (GM) once again emerged as the top-selling automaker in the United States in 2025. Full-year deliveries rose 5.5% to 2.85 million units, driven by gains across all major brands — Chevrolet, Cadillac, ...

Core Insights - The U.S. auto industry has shown resilience in consumer demand despite volatility in sentiment and demand, with notable stock performance from companies like General Motors, Strattec Security, Garrett Motion, and REV Group, each gaining over 50% year to date [1] Industry Overview - 2025 was marked by policy uncertainty, particularly around trade and tariffs, which initially created concerns about vehicle pricing and supply chains but ultimately led to a surge in demand as consumers rushed to make purchases [4] - The mid-year surge in electric vehicle (EV) sales was driven by consumers seeking to qualify for a $7,500 federal tax credit before its expiration, resulting in the strongest quarter for EV sales [5] - Following the expiration of EV incentives, the fourth quarter saw a slowdown in demand, yet U.S. new-vehicle sales are projected to reach approximately 16.3 million units in 2025, nearly 2% higher than the previous year [6] Future Outlook - For 2026, the market is expected to stabilize with sales settling around 16 million units, driven by genuine consumer demand rather than temporary incentives [7] - Affordability will be a key theme, with higher-income buyers supporting demand for larger vehicles while cost-conscious consumers shift towards used options [8] Company Highlights - **General Motors (GM)**: The leading automaker in the U.S. with strong brand demand, upcoming product launches, and significant revenue from software offerings, including $2 billion from Super Cruise and OnStar [9][10] GM stock has increased by 55% in 2025, with a projected 13% EPS growth for 2026 [11] - **Strattec Security (STRT)**: A key player in vehicle access and security systems, transitioning towards smarter solutions and benefiting from operational efficiencies, with a stock increase of 95% in 2025 and a projected EPS of $5.24 for fiscal 2026 [12][14] - **Garrett Motion (GTX)**: Focused on advanced turbocharging and zero-emission technologies, with new contracts and a raised profit outlook, the stock has risen by 93% in 2025, with a projected 19% EPS growth for 2026 [15][17] - **REV Group (REVG)**: Specializes in manufacturing specialty vehicles and is merging with Terex to enhance market position, with expectations of $75 million in annual synergies by 2028. The stock has increased by 96% in 2025, with a projected 38% EPS growth for fiscal 2026 [18][20]