GM Posts Strong Q4 Earnings, Outlines 2026 Targets

Automaker highlights market share gains, shareholder returns, and EV capacity realignment.

Jan. 27, 2026 at 11:47am

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General Motors (NYSE:GM) reported strong fourth-quarter and full-year 2025 earnings, with executives highlighting market share gains, robust cash generation, and expanded shareholder returns. The company also detailed major EV-related charges taken in the second half of 2025, outlined steps to reduce tariff exposure, and issued 2026 guidance targeting a return to 8%-10% adjusted EBIT margins in North America.

Why it matters

GM's performance in 2025 and its outlook for 2026 provide insights into the broader automotive industry's recovery from pandemic-era challenges. The company's ability to maintain pricing power, manage costs, and navigate supply chain disruptions will be closely watched by investors and analysts. Additionally, GM's actions to align its EV capacity with evolving demand and policy changes reflect the automaker's efforts to balance its traditional internal combustion engine business with its electric vehicle aspirations.

The details

In the fourth quarter, GM reported total revenue of $45 billion, down about 5% year over year, reflecting disciplined production and inventory management, aligning EV production to demand, and production constraints on certain models. However, fourth-quarter EBIT adjusted was $2.8 billion and adjusted diluted EPS was $2.51, both up year over year despite tariff impacts. For the full year, GM achieved EBIT adjusted of $12.7 billion and adjusted automotive free cash flow of $10.6 billion, ending the year with $21.7 billion in cash.

  • GM reported its fourth-quarter and full-year 2025 earnings on January 27, 2026.
  • The company recorded $1.6 billion of EV-related charges in the third quarter of 2025 and an additional $6 billion in the fourth quarter.
  • GM paid about $400 million in EV-related charges in 2025 and expects to pay the majority of the remaining cash balance in 2026.

The players

Mary Barra

CEO of General Motors.

Paul Jacobson

Chief Financial Officer of General Motors.

Susan Sheffield

CEO of GM Financial, the automaker's financing arm.

General Motors

A global automotive manufacturer headquartered in Detroit, Michigan, that designs, builds and sells cars, trucks, crossovers and electric vehicles, and provides related parts and services.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.