General Motors (GM) extended its streak of solid quarterly performances with fourth-quarter results that exceeded Wall Street expectations, prompting the automaker to raise its dividend and authorize a new $6 billion share repurchase program. Investors welcomed the update, sending GM shares up more than 7% in early trading to an all-time high of $86.05.<\/p>\n\n\n\n
For the fourth quarter, GM reported revenue of $45.29 billion, roughly in line with estimates but down 5.1% from a year earlier. Profitability, however, stood out. Adjusted earnings per share came in at $2.51, well above the $2.28 consensus forecast, while adjusted EBIT reached $2.84 billion, topping expectations. The strong showing reinforced management\u2019s confidence in GM\u2019s cash-generating capabilities.<\/p>\n\n\n\n
Reflecting improved outlook and capital flexibility, GM\u2019s board increased the quarterly dividend by $0.03 to $0.18 per share and approved a $6 billion stock buyback. CFO Paul Jacobson said the company\u2019s profitability continues to fuel robust cash flow, enabling shareholder-friendly capital allocation. He added that GM still trades at a double-digit free cash flow yield, suggesting the stock remains undervalued.<\/p>\n\n\n\n
Looking ahead, GM projected 2026 adjusted EBIT of $13 billion to $15 billion, automotive free cash flow of $9 billion to $11 billion, and adjusted EPS of $11.00 to $13.00. The company also slightly exceeded its 2025 guidance, underscoring operational consistency.<\/p>\n\n\n\n
However, challenges remain. GM expects additional tariff costs of $3 billion to $4 billion in 2026, alongside commodity, foreign exchange, and onshoring headwinds. Electric vehicles remain a key pressure point. After taking a cumulative $6.6 billion in EV-related write-downs, GM acknowledged slower adoption, with EV sales expected to represent just 5% to 7% of the market this year.<\/p>\n\n\n\n
Despite softer EV demand, GM\u2019s core business remains strong. Full-size pickups and SUVs continue to perform well, helping the company maintain its position as the top-selling automaker in the U.S. For now, disciplined execution and shareholder returns are driving investor optimism\u2014even as GM navigates a more cautious EV landscape.<\/p>\n\n\n\n