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4h ago

GM Beats on Q4 Adjusted Results, Launches $6 Billion Buyback After EV Charge

Stronger 2026 profit targets reflect a measured EV reset plus increased onshoring to reduce tariff exposure.

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Mary Barra, chairman and chief executive officer of General Motors Co., at General Motors global headquarters at Hudson's Detroit in Detroit, Michigan, US, on Monday, Jan. 12, 2026.
SOUTHFIELD, MICHIGAN - OCTOBER 29: Chevrolet Equinox EVs are shown for sale at a Chevrolet dealership on October 29, 2025 in Southfield, Michigan. General Motors announced today it will be laying off 3,300 hourly employees around the country at plants that make electric vehicles and batteries due to slowing EV consumer interest. GM's all-electric Factory Zero plant, which manufactures the Chevrolet Silverado EV and the GMC Sierra EV, among others, will be hit the hardest, with 1,200 workers to be laid off. (Photo by Bill Pugliano/Getty Images)

Overview

  • GM posted Q4 adjusted EPS of $2.51 on $45.29 billion in revenue, topping profit forecasts while slightly missing sales estimates as adjusted EBIT reached $2.84 billion.
  • The company recorded a GAAP net loss of $3.3 billion after about $7.2 billion in EV-related charges tied to capacity cuts, asset impairments, supplier settlements and the wind-down of programs such as BrightDrop.
  • Board actions included a new $6 billion share repurchase authorization and a 20% dividend increase to $0.18 per share, with shares rising to record highs during Tuesday trading.
  • For 2026, GM guided to adjusted EBIT of $13–$15 billion, adjusted EPS of $11–$13, and $9–$11 billion in adjusted automotive free cash flow, targeting a return to 8%–10% North America EBIT margins and lower EV unit losses.
  • Tariff costs totaled $3.1 billion in 2025 and are expected at $3.0–$4.0 billion in 2026, with GM accelerating U.S. production to mitigate levies as Q4 EV sales fell about 43% to just over 25,000 units.