GM Stock Soars Nearly 6% on Strong 2026 Profit Outlook and $6 Billion Buyback Boost

Stock News01-27

General Motors (GM.US) surged close to 6% on Tuesday, trading at $84.15. The company's financial results revealed that its Q4 2025 revenue declined by 5.1% year-over-year to $45.29 billion, falling short of the analyst consensus estimate of $45.8 billion. The net loss attributable to shareholders was $3.31 billion, higher than the net loss of $2.96 billion reported in the same period last year.

The adjusted EBIT margin was 6.3%, an improvement from 5.3% a year earlier. Adjusted earnings per share came in at $2.51, marking a significant 30.4% increase year-over-year and surpassing the analyst consensus estimate of $2.20. Looking ahead, General Motors provided an optimistic forecast for 2026, projecting adjusted EBIT to be in the range of $13 billion to $15 billion, with the midpoint of this range exceeding the analyst consensus of $13.39 billion.

The company anticipates a net income between $10.3 billion and $11.7 billion for 2026. It also expects adjusted earnings per share to be in the range of $11.00 to $13.00, with the midpoint of this guidance also beating the analyst consensus expectation of $11.73. Furthermore, General Motors' board of directors announced an increase in the quarterly dividend by $0.03 to $0.18 per share and approved a substantial new $6 billion stock repurchase program.

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