General Motors $GM ( ▼ 2.17% ) shares moved higher after the automaker delivered a solid fourth-quarter earnings beat, raised its forward guidance, and unveiled a massive new stock buyback. Investors welcomed the combination of improving profitability and shareholder-friendly moves.
Earnings beat and upbeat outlook
GM reported adjusted earnings of $2.51 per share for the fourth quarter, topping expectations of $2.25. Looking ahead, the company forecast 2026 adjusted earnings between $11 and $13 per share, with the midpoint slightly above Wall Street estimates. It also expects adjusted automotive free cash flow of $9 billion to $11 billion next year, roughly in line with what analysts were modeling.
Despite softer quarterly numbers in some areas, GM still leads the U.S. in auto sales and is positioning itself for steadier performance as the industry works through recent volatility.
EV slowdown hits the numbers
One notable weak spot was electric vehicles. GM said EV sales fell 43% in the quarter as demand cooled following the expiration of federal tax credits, part of a broader industry pullback. Total sales dropped 7% year over year in the fourth quarter, though they still rose 6% for the full year.
Earlier this month, GM disclosed a $6 billion write-down tied to its EV business, reflecting the tougher near-term environment. Rival Ford $F also took a sizable charge for similar reasons, highlighting how legacy automakers are recalibrating their electric strategies.
Cash returns take center stage
Alongside the earnings report, GM announced a new $6 billion share repurchase program and boosted its quarterly dividend by 20% to $0.18 per share. Those moves signal confidence in cash flow and a stronger focus on returning capital to shareholders as the company balances investment in future technologies with near-term profitability.