Mizuho has raised its price objective on General Motors to $105.00 from $100.00 while retaining an Outperform recommendation on the shares. The stock is trading at $86.38, having moved past its 52-week high of $85.18, and is up 49.43% over the past six months.
GM reported fourth-quarter 2025 results showing revenue of $45.3 billion and earnings per share of $2.51. Those figures compare with consensus estimates of $44.6 billion in revenue and $2.65 in EPS. Wholesale volumes declined about 10% year-over-year to roughly 937,000 units, a contrast with the approximately 4% growth in global light vehicle production during the same period.
Despite the volume contraction, company-level cash metrics remain robust. InvestingPro data cited a free cash flow yield of 18%, indicating that GM continues to generate substantial cash relative to its market value even as production volumes softened.
Looking ahead, GM provided 2026 guidance that topped analyst expectations. The automaker projected EBIT of $14.0 billion and EPS of $12.00, versus consensus forecasts of $12.3 billion and $11.79. Capital expenditures are planned at $11 billion for 2026. At present the company trades at a price-to-earnings ratio of 18.19. InvestingPro’s Fair Value assessment suggests the shares may be overvalued relative to those metrics, even as analysts continue to model ongoing profitability.
Management highlighted a number of specific headwinds for 2026. The company expects $3.5 billion in tariffs, about $1.25 billion related to commodity and DRAM inflation plus foreign exchange impacts, and another $1.25 billion tied to on-shoring and software-related costs. Those pressures are expected to be partly offset by improving electric vehicle losses, warranty improvements and favorable product mix.
On margins, GM reiterated its North American EBIT margin target range of 8% to 10%. The company also pointed to longer-term catalysts including hands-free advanced driver assistance systems scheduled for 2028 and ongoing software development efforts. In parallel with operational moves, management has been an active buyer of shares and maintains a dividend yield of 0.76%, having raised the dividend for four consecutive years.
In an additional earnings note, GM’s fourth-quarter 2025 EPS of $2.51 beat a different expected figure of $2.24, representing a 12.05% surprise on that EPS comparison. Revenue in the quarter totaled $45.29 billion, marginally below the $45.88 billion that had been anticipated.
On the policy front, CEO Mary Barra criticized Canada’s new agreement to admit low-cost Chinese electric vehicles under a reduced tariff, calling the measure a "slippery slope" for North American auto manufacturing. The arrangement introduces a new low tariff rate for Chinese EVs entering Canada, a development GM sees as strategically significant for regional manufacturing and competition.
Overall, the picture that emerges is one of a company producing considerable cash flow and delivering guidance above consensus, while balancing near-term operational and policy-related headwinds and facing valuation scrutiny from fair-value assessments. Investors and analysts will be watching how the company manages tariff impacts, supply-chain inflation and software investment costs even as it pursues margin targets and new technology rollouts.
Contextual note: The company continues to report detailed financial metrics and forward guidance while management pursues capital allocation actions including buybacks and modest dividend increases.