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This Month's Bonus News After +50% Return in 2025, GM Gets Off to a Strong Start in 2026By Leo Miller. Published: 1/29/2026. 
In Brief - General Motors’ shares jumped after a strong adjusted EPS beat and upbeat 2026 guidance.
- A large Q4 special-charge package weighed on GAAP results but appeared largely priced in.
- The stock’s outlook hinges on free cash flow durability and how EV adoption evolves in the United States.
U.S. automotive giant General Motors (NYSE: GM) just saw its historic rally get another boost. In 2025, shares of GM delivered a total return of more than 54%, marking the stock's best calendar-year performance since its 2010 relisting on the NYSE. The stock's latest surge came on Jan. 27, when shares jumped 8.8% after the company released its Q4 and full-year 2025 earnings report and Wall Street analysts turned more bullish. GM Posts Strong EPS Beat, Eyes +10% Earnings Growth in 2026 Gold is soaring, but while the media hypes price predictions, there's one gold income opportunity no one's talking about. It's not a mining stock, not an option trade, and not physical gold you have to store. A quiet fund trading for just $15 has been delivering up to $1,152 a month to regular investors. It's a smarter, faster way to ride gold's surge and get paid monthly while you do it. Discover the gold income breakthrough most investors are missing. In Q4, GM reported revenues of about $45.3 billion, a 5.1% decline. That was slightly below analysts' expectation of $45.8 billion (a 4% decline). Despite the revenue shortfall, GM delivered a solid adjusted earnings-per-share (EPS) beat: $2.51 versus expectations of $2.26. Adjusted EPS rose nearly 31% year over year, versus estimates closer to 18%. For full-year 2026, GM expects adjusted EPS of $11 to $13. The midpoint of $12 slightly exceeds the analyst consensus of $11.95 and, compared with full-year adjusted EPS of $10.60, implies roughly 13% earnings growth in 2026. Wall Street reacted positively, with several firms raising price targets in the days after the results. The consensus price target sits near $85—roughly the stock's Jan. 28 closing price—but the targets issued between Jan. 27 and Jan. 28 average just over $100, suggesting about 18% upside from that close. GM Takes +$7 Billion Charge Amid EV Slowdown, China Restructuring One notable weakness was the company's full-year net income attributable to shareholders of $2.7 billion—well below the company's midpoint guidance of $8 billion. GM said this shortfall was largely driven by roughly $7.2 billion of special charges taken in Q4. Facing a softer market for electric vehicles (EVs), GM cut production capacity and recorded impairment charges on EV-related assets. It also reached settlements with suppliers that had expected higher order volumes, and incurred costs associated with restructuring its joint venture with SAIC Motor in China. Those items flowed through the income statement as expenses (or losses), reducing pre-tax profit and, ultimately, net income. The company had first disclosed it would take these charges earlier in January, and the news sent shares down about 2.7% on Jan. 9. Because the market had largely priced in the charges, they did not materially alter investors' reaction to the subsequent earnings release. GM's Rally May Still Have Considerable Tread on the Tires Even after a very strong 2025, General Motors does not look excessively expensive. The company generated $10.6 billion in adjusted automotive free cash flow in 2025 despite significant headwinds for the auto sector. For 2026, GM's midpoint guidance for adjusted automotive free cash flow is $10 billion, with U.S. industry sales expected to decline moderately. Maintaining free cash flow near these levels will be key to the company's longer-term outlook. If GM can sustain free cash flow around these levels, its valuation—roughly 7x forward earnings based on 2026 guidance—still appears reasonable and leaves room for upside. EV Adoption Slows, But Long-Term Growth Still Shapes GM's Strategy U.S. EV sales softened in 2025 and lost market share to other vehicle types. Kelley Blue Book estimates EVs accounted for 7.8% of new-car sales in the U.S. in 2025, down from 8.1% in 2024. Still, many analysts expect EVs to capture a materially larger share over the long term. Accounting firm Ernst & Young (EY) projects EVs will account for 32% of U.S. light-vehicle sales by 2035. That outlook makes GM's recent scaling back of some EV investments noteworthy, although the company has not abandoned EVs entirely. EY also warns of "policy roadblocks" that could keep EV share nearer 11% by 2029, reflecting a potentially less supportive federal policy environment. A slower adoption curve would give GM time to refine its EV strategy while continuing to generate profits from traditional internal-combustion models. GM's leading position in full-size pickups and SUVs should help insulate the company. Those vehicles typically carry some of the industry's highest margins and have been slower to electrify. Overall, GM looks well-positioned over the next few years, supporting a constructive view on the stock, though investors should closely monitor competition and shifts in the EV landscape.
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