Prime Highlights :
- General Motors beat Q4 earnings expectations and signaled confidence with a $6 billion share repurchase program.
- The company raised its quarterly dividend by 20%, reflecting optimism about its financial outlook.
Key Facts :
- GM reported adjusted earnings of $2.51 per share on $45.29 billion revenue for Q4, exceeding analysts’ EPS estimate of $2.20.
- The automaker projects 2026 net income of $10.3–$11.7 billion and full-year EPS of $11–$13.
Background :
General Motors on Tuesday reported better-than-expected fourth-quarter earnings and announced a dividend increase along with a new $6 billion share repurchase program, signalling confidence in its financial position despite ongoing restructuring efforts.
The Detroit-based automaker posted adjusted earnings of $2.51 per share for the quarter, beating Wall Street estimates of $2.20, according to LSEG data. Revenue came in at $45.29 billion, slightly below expectations of $45.8 billion. GM shares rose more than 4% in premarket trading following the announcement.
GM also issued an optimistic outlook for 2026, projecting another year of strong financial performance. The company expects net income attributable to shareholders to range between $10.3 billion and $11.7 billion. It forecast adjusted earnings before interest and taxes of $13 billion to $15 billion and full-year earnings per share between $11 and $13, broadly in line with market expectations.
As part of its shareholder return strategy, GM said its board approved a 20% increase in the quarterly dividend, raising it by 3 cents to 18 cents per share. The company also authorized a fresh $6 billion stock buyback, continuing its efforts to reduce outstanding shares and support its stock price.
CEO Mary Barra said GM remains well-positioned to return capital to shareholders while managing costs and refining its product strategy. North America remained the company’s strongest region, while international markets showed improvement. GM also noted that its 2026 forecast assumes a lower vehicle tariff from South Korea, a key production hub for the automaker.
Overall, GM showed steady core performance while making major strategic changes.
