Key Points
- GM’s fourth-quarter earnings and revenue beat Wall Street’s expectations.
- The company announced a new $6 billion stock buyback and raised its dividend.
- The company’s EV business is still struggling, with sales down 43% in the fourth quarter.
- GM is facing headwinds in 2026, including up to $4 billion in additional tariff costs.
General Motors had a great fourth quarter, beating Wall Street’s expectations and giving investors a lot to be happy about. The automaker announced a new $6 billion stock buyback plan and raised its quarterly dividend, sending its shares up over 4% in premarket trading.
GM reported adjusted earnings of $2.51 per share on revenue of $45.29 billion, both of which were better than what analysts had predicted. For the full year, the company also came in at the high end of its guidance.
CEO Mary Barra said she expects 2026 to be an “even better year for GM.” The company is projecting adjusted earnings of $11.00 to $13.00 per share for the coming year, a sign of strong confidence in its ability to navigate a complex market.
The good news was driven by the continued strong demand for the company’s gas-powered trucks and SUVs. GM was the top-selling automaker in the U.S. in 2025, with sales of its full-size pickups hitting a 20-year high.
However, it’s not all rosy for the Detroit giant. The company’s electric vehicle business is still a major sore spot. GM recently took a $6 billion charge on its EV investments, citing softer-than-expected demand and the loss of the federal EV tax credit. EV sales in the fourth quarter fell by a whopping 43%.
The company is also facing several headwinds in 2026, including up to $4 billion in additional tariff costs.
For now, though, investors are focusing on the positive. The strong performance of its traditional vehicle lineup and the new shareholder-friendly moves are enough to keep the market happy, at least for now.
