GM beats Q4 earnings, launches $6B share buyback
General Motors reported stronger-than-expected fourth-quarter earnings and announced a new $6 billion share repurchase program, extending its solid run of quarterly performance.
The company also raised its dividend, citing confidence in its outlook for 2026, News.Az reports, citing foreign media.
For the fourth quarter, GM reported revenue of $45.29 billion, slightly below analysts’ expectations of $45.37 billion and down 5.1% from a year earlier. Adjusted earnings per share came in at $2.51, beating estimates of $2.28, while adjusted EBIT totaled $2.84 billion, compared with forecasts of $2.77 billion.
Looking ahead to 2026, GM projected adjusted EBIT in a range of $13.0 billion to $15.0 billion, adjusted automotive free cash flow of $9.0 billion to $11.0 billion, and diluted adjusted earnings per share of $11.00 to $13.00. GM shares were lower in pre-market trading following the announcement.
“We expect the U.S. new vehicle market will continue to be resilient, and with our compelling vehicles, technology-driven services, and operating discipline, 2026 should be an even better year for GM,” CEO Mary Barra said in a statement. She added that GM expects full-year EBIT-adjusted margins in North America to return to the 8%–10% range.
Reflecting higher expectations, GM’s board increased the quarterly dividend by $0.03 to $0.18 per share and approved a new $6 billion stock buyback authorization.
For 2025, GM reported results that largely exceeded its own guidance. Adjusted EBIT reached $12.7 billion, compared with a projected range of $12.0 billion to $13.0 billion. Adjusted automotive free cash flow totaled $10.6 billion, above the $10.0 billion to $11.0 billion outlook, while diluted adjusted EPS came in at $10.60, exceeding guidance of $9.75 to $10.50.
Barra said GM continues to benefit from a U.S. regulatory and policy environment that aligns more closely with customer demand, prompting the company to onshore additional production to meet strong vehicle demand.
The automaker said tariff offsets announced by the White House last summer helped lift its profit outlook. GM’s full-year tariff exposure totaled $3.1 billion, below its earlier projection of $3.5 billion to $4.5 billion. However, GM warned that headwinds this year include an additional $3.0 billion to $4.0 billion in tariff costs, $1.0 billion to $1.5 billion in commodity and foreign exchange pressures, and roughly $1.0 billion to $1.5 billion in onshoring and other costs.
GM said losses in its electric vehicle business are expected to improve by $1.0 billion to $1.5 billion, while regulatory benefits of $550 million to $750 million are anticipated due to savings from no longer needing to purchase emissions credits.
Earlier this month, GM took an additional $6 billion charge related to its EV business, citing weaker-than-expected demand and the expiration of the federal EV tax credit at the end of the third quarter of 2025. This followed a $1.6 billion charge in the third quarter after a reassessment of the EV business, bringing total EV-related write-downs to $6.6 billion. GM said it expects smaller, though still material, EV-related charges in 2026.
In January, GM reported that U.S. sales in the fourth quarter fell 6.9% year on year to just over 703,000 vehicles. However, full-year 2025 U.S. sales rose 5.5% to 2.85 million vehicles, making GM the top-selling automaker in the United States.
The company said full-size pickup truck sales increased for a sixth consecutive year, marking the strongest performance in two decades. Sales of full-size SUVs such as the Tahoe, Suburban, and Yukon also helped GM secure its fifth straight category win in the segment.
By contrast, GM’s EV sales fell sharply in the fourth quarter, plunging 43% to just over 25,000 units. The company said a pull-forward of EV purchases in the third quarter, ahead of the expiration of the federal tax credit, weighed heavily on fourth-quarter results.
By Nijat Babayev
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