General Motors Co. (GM) reported fourth-quarter 2025 earnings that topped Wall Street expectations, and the Detroit-based automaker announced a new $6 billion stock buyback plan alongside a dividend increase, sending its shares higher in pre-market trading on Tuesday.
For the quarter ended December 31, GM posted adjusted earnings per share (EPS) of US$2.51, above analysts’ forecast of about US$2.28, while adjusted earnings before interest and taxes (EBIT) reached roughly $2.84 billion, topping expectations. Revenue for the period was $45.29 billion, slightly below estimates and down about 5.1% from the prior year.
The company’s board also approved a quarterly dividend increase to $0.18 per share and authorised a $6 billion share repurchase programme to return capital to shareholders. Both moves underscore management’s confidence in the firm’s financial strength and long-term prospects.
Looking ahead, GM provided guidance for 2026, forecasting adjusted EBIT between $13 billion and $15 billion, adjusted automotive free cash flow of $9 billion to $11 billion, and adjusted EPS in the range of $11.00 to $13.00 for the full year.
CEO Mary Barra said the company expects the U.S. new vehicle market to remain resilient and highlighted GM’s “technology-driven services and operating discipline” as drivers for anticipated growth.
Investors reacted positively to the earnings beat and capital return plans, with GM’s stock climbing more than 4% in early trading following the announcement.
GM to take additional US$6bn charge as EV business faces mounting pressure
