General Motors (GM) investors are looking for the Big Three automaker to continue its strong run of quarterly performance, with fourth quarter results on deck for Tuesday morning. But challenges remain for the automaker in 2026 as tariffs and its EV business could be a drag on performance.
For the quarter, analysts expect GM to post Q4 revenue of $45.37 billion, down 5% compared to the $47.70 billion reported last year. GM is expected to report Q4 adjusted EPS of $2.28, on adjusted EBIT of $2.77 billion.
In terms of guidance, GM upped its full-year 2025 targets when it reported Q3 earnings in October:
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Adjusted EBIT in a range of $12 billion to $13 billion
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Adjusted automotive free cash flow of $10 billion to $11 billion
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Adjusted EPS (diluted) of $9.75 to $10.50 diluted
At the time, GM CEO Mary Barra said the MSRP tariff offsets announced by the White House last summer allowed it to boost profit guidance for the year. GM said its full-year tariff exposure is projected to be around $3.5 billion to $4.5 billion, assuming current levy rates remain the same.
Earlier in January, GM said Q4 US sales slipped 6.9% from a year ago to just over 703,000, but were up 5.5% in 2025 to 2.853 million vehicles, making it the top-selling automaker in the US.
GM said full-size pickup sales were up for the sixth straight year, the best in 20 years. Sales of full-size SUVs like the Tahoe, Suburban, and Yukon also propelled GM to a category win in the segment for the fifth straight year.
However, GM said EV sales in Q4 fell a whopping 43% to just over 25,000 units, weighing on results. GM said a “pull ahead” in EV sales in Q3 before the expiration of the federal EV tax credit hurt Q4 results.
As a result, earlier this month GM took an additional $6 billion charge to its EV business, citing softer-than-expected demand for EVs and the loss of the federal EV tax credit at the end of Q3 2025.
GM said charges include non-cash impairments and other non-cash charges of approximately $1.8 billion, as well as cash impacts from supplier settlements, contract cancellation fees, and other charges of $4.2 billion. GM said the charges won’t affect its EBIT-adjusted (earnings before interest and taxes) results.
GM’s charge taken this month comes on top of the $1.6 billion it took in Q3 following a “reassessment” of its EV business, giving it a total EV writedown of $6.6 billion.
Last year, GM said it would spend an additional $4 billion in US plant investments, not only to up domestic capacity, but also to produce more gas-powered and hybrid vehicles.
