GM Surpasses Q4 Profit Estimates, Boosts Dividend and Unveils $6 Billion Stock Buyback

General Motors (NYSE: GM) exceeded Wall Street's profit expectations for the fourth quarter, delivering adjusted earnings per share of $2.51 versus the forecasted $2.20. Despite this, its revenue fell slightly short at $45.29 billion compared to the $45.8 billion analysts anticipated. The automaker, headquartered in Detroit, is mapping out another year of solid financial results in 2026.

The company's outlook for this year projects adjusted earnings before interest and taxes between $13 billion and $15 billion, with net income ranging from $10.3 billion to $11.7 billion. GM expects earnings per share in the ballpark of $11 to $13, aligning well with analyst estimates. However, these figures factor in significant expenditures - $10 billion to $12 billion - aimed at reshaping its vehicle lineup, which notably involves pullbacks in the all-electric segment linked to hefty write-downs.

For context, GM's 2025 numbers included $2.7 billion in net income and adjusted automotive free cash flow of $10.6 billion, setting a tough standard. Looking at the fourth-quarter specifics, GM posted EBIT-adjusted earnings of $2.8 billion, but on the flip side, a net loss of $3.3 billion hit the books due to special charges totaling over $7.2 billion. These charges originated mainly from the EV portfolio reevaluation and China restructuring efforts.

The $7.1 billion in special charges had already been flagged earlier in January, with further costs tied to legal issues around OnStar and airbags, a recent headquarters move, and write-downs related to the shuttered Cruise robotaxi unit. Even with these setbacks, CEO Mary Barra emphasized GM's robust position to return capital to shareholders.

Backing that up, GM announced a 20% increase in its quarterly dividend, pushing it up by 3 cents to 18 cents per share. On top of this, the company's board greenlit a fresh $6 billion share repurchase program-a continuation of its strategy to buy back shares and support the stock price. Share count decline has been significant, dropping from 1.2 billion at the end of 2023 to 904 million by year-end 2025.

Regionally, North America remains GM's strongest market, even though earnings there fell 28.1% in 2025 to $10.45 billion. The fourth quarter alone saw a 1.3% decline. Meanwhile, international operations, including markets like South Korea and Brazil, turned in adjusted earnings of $737 million, a marked improvement from the previous year. China, however, remains a thorn with a $316 million loss, albeit much smaller than the previous $4.4 billion hit.

GM shares reflected the upbeat profit news, trading more than 4% higher in the premarket. Executives plan to discuss the quarterly results and strategic outlook further during an earnings call scheduled for 8:30 a.m. Eastern.