General Motors sent a strong signal of confidence to investors on Tuesday, announcing a dividend increase alongside a new $6 billion share buyback program as it forecast higher profits following what it called a year of solid financial performance.
The automaker said it expects adjusted profit in 2026 to land between $13 billion and $15 billion, up from $12.7 billion in 2025. The upbeat outlook sent GM shares soaring more than 8% in early trading, putting the stock on track for a record close.
GM also raised its quarterly dividend by three cents to 18 cents per share, reinforcing its commitment to returning capital to shareholders.
Despite the positive forward-looking guidance, the company reported a wider loss for the fourth quarter. GM posted a net loss of $3.31 billion, or $3.60 per share, compared with a loss of $2.96 billion, or $1.64 per share, in the same period a year earlier. Revenue declined 5% year over year to $45.29 billion, reflecting lower vehicle sales in North America.
The automaker said it took a “disciplined approach” to production during the quarter. While electric-vehicle volumes declined, the impact was largely offset by stronger sales of full-size pickup trucks and sport-utility vehicles, which carry higher margins.
Excluding charges related to the realignment of electric-vehicle capacity and investment spending announced earlier this month — as well as costs tied to changes in government policy on consumer incentives and emissions regulations — GM said it would have earned $2.51 per share. That figure exceeded Wall Street expectations, as analysts surveyed by FactSet had forecast earnings of $2.26 per share on revenue of $46.22 billion.
Looking ahead, GM guided for adjusted earnings per share of between $11 and $13 in 2026, narrowly topping the FactSet consensus estimate of $11.95. The company also projected automotive operating cash flow of $19 billion to $23 billion, roughly in line with analyst expectations of $20.18 billion.
Chair and CEO Mary Barra said GM’s financial strength has allowed the company to balance investment needs with shareholder returns.
“For several years now, GM’s strong brands and winning vehicles, as well as our technology-driven services and operating discipline, have delivered consistently strong cash generation,” Barra said in a statement. “This has allowed us to execute all phases of our capital allocation strategy, from investing in the business and our people, to maintaining a strong balance sheet and returning capital to shareholders.”
GM shares are now up 58% over the past 52 weeks, significantly outperforming the broader market. Analysts remain cautiously optimistic despite ongoing challenges tied to tariffs and the electric-vehicle transition.
Citi analyst Michael Ward said GM’s ability to generate North American operating margins between 8% and 10%, along with its free cash flow outlook, supports a buy rating on the stock. He added that GM’s performance remains resilient even as tariff pressures and EV headwinds persist.
The company said it managed to offset roughly 40% of a $3.1 billion tariff impact last year and is continuing to invest in expanding production capacity for high-demand pickups and SUVs — a strategy that has helped stabilize profitability during a volatile period for the auto industry.
