General Motors shares see a significant rise
General Motors delivered a strong performance in the last quarter of the year, exceeding profit expectations and reinforcing its supportive stance towards shareholders through increased dividends and a new $6 billion share buyback mandate. In the fourth quarter, General Motors reported adjusted earnings per share of $2.51, above consensus estimates, even as revenue declined modestly year-over-year, according to Yahoo Finance.Adjusted earnings before interest and taxes (EBIT) also came in slightly above expectations, underscoring disciplined cost control in a challenging environment. Investors reacted positively, sending General Motors shares up more than 4% in premarket trading.
General Motors shares jump as shareholder returns rise
What’s happening:
Shares of General Motors rose sharply on Tuesday after the company released its fourth-quarter results.
What happened:
The automaker missed sales expectations but posted better-than-expected earnings for the latest quarter.
Sales of GM’s EVs (electric vehicles) declined by around 47% year-on-year.
How were the results:
The Detroit, Michigan-based company reported a single-digit decline in sales for the fourth quarter.
Sales fell 5.1% to $45.287 billion, missing consensus estimates of $45.804 billion.
Adjusted earnings jumped 30.4% year-over-year to $2.51 per share, topping Wall Street expectations of $2.20 per share.
General Motors stock
Why it matters:
General Motors’ automotive sales declined by around 7% year-on-year in the fourth quarter. EV sales contracted by around 47% year-on-year after federal incentives were paused by the Trump administration.
The company’s quarterly adjusted EBIT rose 13.3% to $2.843 billion during the latest quarter.
General Motors said it expects to record higher profits in fiscal 2026 despite persistent tariff concerns, with the easing of environmental rules projected to provide a boost for its truck and SUV sales.
“For several years now, GM’s strong brands and winning vehicles, as well as our technology-driven services and operating discipline, have delivered consistently strong cash generation,” CEO Mary Barra said. “This has allowed us to execute all phases of our capital allocation strategy, from investing in the business and our people, to maintaining a strong balance sheet and returning capital to shareholders.”
The company’s board raised the quarterly dividend by 3 cents per share to 18 cents per share, while approving a new $6 billion share repurchase authorisation.
General Motors guided for adjusted earnings of $9.75-$10.50 per share for fiscal 2026.
GM
How shares responded:
GM’s shares jumped 8.8% to close at $86.38 on Tuesday following the release of quarterly results. The stock has surged around 62% over the past six months.
What to watch:
Investors will continue monitoring tariff-related developments, which are expected to significantly impact the company’s results ahead.