New York, January 27, 2026, 19:08 EST — After-hours
- GM shares climbed in late U.S. trading following the release of the automaker’s quarterly results and its 2026 outlook.
- Investors juggle cash returns with risks from tariffs, costs, and the EV reset.
- Attention now turns to whether Wednesday’s session sustains momentum and how quickly buybacks continue.
General Motors (GM) shares jumped $6.95, or 8.8%, closing at $86.38 in after-hours trading Tuesday. The stock fluctuated between $77.41 and $87.29 throughout the session, with roughly 23.6 million shares traded.
This shift offers investors a clearer picture of just how much GM can rely on pickups and SUVs to support earnings as it revamps its electric-vehicle strategy.
After the bell, the key question for Wednesday: will the rally survive as traders focus on costs, tariffs, and the pace at which guidance converts into actual cash?
GM projects adjusted core profit between $13 billion and $15 billion for 2026, excluding special items. The automaker also boosted its quarterly dividend by 20% and greenlit a $6 billion share buyback. Fourth-quarter adjusted pre-tax earnings rose 13% to $2.84 billion, with adjusted EPS at $2.51—beating estimates—while revenue dropped 5.1% to $45.3 billion. A $6 billion charge from scaling back its EV program pushed the quarter into a $3.3 billion loss, though losses in China narrowed to $513 million following a restructuring. Evercore ISI’s Chris McNally described the forecast as a “very strong guide.” GM noted that looser U.S. emissions rules might save it up to $750 million by avoiding regulatory credit purchases from EV makers like Tesla. CEO Mary Barra told CNBC EVs remain the “end game.” (Reuters)
GM’s U.S. truck and SUV segment remains the powerhouse, with the company pushing to control incentives even as buyers face tighter budgets. The EV pivot, however, highlights that not every gamble hits the mark on the expected schedule.
Mizuho bumped its price target on GM to $105 from $100, maintaining an “outperform” rating following the earnings, Investing.com reported. (Investing)
That new stock price leaves little margin for error. A sharper tariff blow, another surge in metals costs, or renewed pressure on chips might push discounts higher and erode profits.
China remains a key variable. GM has been working to regain ground amid mounting pressure from local brands. A setback there could disrupt the cash narrative behind Tuesday’s rally.
Traders will zero in on the buyback’s speed and whether the company ramps up repurchases as shares hover near recent peaks. Just as crucial will be management’s stance on 2026 pricing, which could carry as much weight as the headline profit forecast.
GM’s board raised the quarterly dividend to $0.18 per share, set for payment on March 19 to shareholders of record by March 6. They also greenlit a fresh $6.0 billion share buyback plan with no set expiration. The company reported ending 2025 with 904 million shares outstanding. All eyes now turn to the March 6 record date, as traders look for signs the new buyback is already in motion. (Prnewswire)
