General Motors Soars to New Heights with $6B Share Buyback and 20% Dividend Increase
General Motors outperformed expectations with its fourth-quarter earnings report on Tuesday, announcing a colossal $6 billion share repurchase program and a 20% dividend increase. This news propelled its stock to an unprecedented closing high of $86.38.
The Detroit-based automaker reported Q4 adjusted earnings per share of $2.51, surpassing analyst estimates of $2.28, on revenue of $45.29 billion. Looking ahead to 2026, GM projects adjusted earnings per share to be between $11.00 and $13.00, with adjusted EBIT in a range of $13 billion to $15 billion. In a significant move, the company raised its quarterly dividend by $0.03 per share to $0.18, marking a 20% increase.
Despite facing considerable challenges, GM’s performance remains robust. The automaker anticipates $3 billion to $4 billion in tariff costs in 2026, along with $1 billion to $1.5 billion in commodity and foreign exchange pressures. Nevertheless, the company aims to counterbalance these obstacles through regulatory savings of $550 million to $750 million and improved EV unit economics.
GM’s success is largely attributed to the strong sales of full-size pickups and SUVs like the Tahoe, Suburban, and Yukon. With 2.85 million vehicles sold in 2025, a 5.5% increase from the previous year, GM continues to hold the title of the top-selling automaker in the U.S. The new buyback program is a continuation of GM’s assertive capital returns strategy, which has seen the retirement of 35% of outstanding shares since 2023, reducing the share count from 1.2 billion to 904 million.
Source: CNBC