General Motors (NYSE: GM) experienced a historic rally in 2025, with shares gaining over 54%. The stock surged by 8.8% on Jan. 27 following the company’s Q4 and full-year 2025 earnings report. GM posted strong adjusted earnings per share (EPS) of $2.51, beating expectations by almost 31%.

For full-year 2026, GM expects adjusted EPS between $11 and $13, signaling potential earnings growth of 13%. Wall Street analysts reacted positively to GM’s results, with a consensus price target of around $85, but newer targets suggest shares could rise by 18% to over $100.

Despite a $7.2 billion charge in Q4 due to EV slowdown and China restructuring, GM remains optimistic. The company’s full-year net income of $2.7 billion fell short of guidance, but these charges were already anticipated by the market. GM’s ability to generate strong free cash flow will be key to its future success.

While U.S. EV sales declined in 2025, GM’s long-term strategy remains focused on EV growth. Analysts predict EVs will account for 32% of U.S. light vehicle sales by 2035. GM’s leading position in full-size pickups and SUVs helps protect it from EV adoption challenges, positioning the company well for the future.

Read more at Nasdaq: After +50% Return in 2025, GM Gets Off to a Strong Start in 2026