New York, Jan 28, 2026, 12:45 ET — Regular session
General Motors shares dipped around 1% to $85.50 during midday trading in New York on Wednesday. So far, the stock has fluctuated between $84.43 and $86.70.
The dip comes after a steep climb the previous day, when the Detroit automaker unveiled a stronger 2026 outlook and boosted returns for shareholders. GM now expects adjusted profit between $13 billion and $15 billion in 2026, raised its dividend, and announced a fresh $6 billion stock buyback. MarketWatch
This is crucial as GM works to protect margins in its truck and SUV stronghold while adjusting its electric vehicle investments amid changing U.S. policies. “We continue to believe in EVs,” CEO Mary Barra said in a shareholder letter, highlighting plans to ramp up domestic production in the coming years. GM News
GM reported a full-year 2025 net income of $2.7 billion attributable to stockholders, but the fourth quarter took a hit, posting a loss of $3.3 billion. The automaker said the quarterly results were dragged down by over $7.2 billion in special charges, mainly linked to an EV capacity realignment and shifts in U.S. policy — including the end of consumer incentives and relaxed emissions rules. SEC
GM’s adjusted pre-tax earnings for the fourth quarter climbed roughly 13% to $2.84 billion, Reuters reported, boosted by strong sales of crossover SUVs and pickup trucks. The company also took a $6 billion charge linked to its EV strategy rollback, covering contract cancellations and supplier settlements after scaling back earlier EV volume forecasts. Investing.com
GM’s new buyback program piles onto an already aggressive capital-return strategy. According to The Wall Street Journal, the latest authorization follows roughly $23 billion in share repurchases since 2023, even as the automaker prepares for tariff-related expenses that could hit $4 billion in 2026.
GM’s CFO Paul Jacobson didn’t mince words on near-term expenses. He told analysts the company anticipates “gross tariff costs in the $3 billion to $4 billion range” for 2026. On top of that, he highlighted an additional $1 billion to $1.5 billion drag from commodities, foreign exchange, and chip-related issues. The Motley Fool
Some analysts focused on the margin outlook. Citi’s Mike Ward noted in a Tuesday report that GM’s 2026 operating margin target of 8% to 10% exceeds Street estimates. He also described the company’s free-cash-flow goal as “solid,” according to Barron’s. Barron’s
Auto stocks showed a mixed picture at midday. Ford slipped roughly 0.9%, Tesla edged up around 0.4%, and Stellantis barely moved.
Still, the risk remains. Autoweek notes that investors are keeping a close eye on potential shifts in tariffs on South Korean imports—a key concern for GM’s budget-friendly models built there. The company’s 2026 cost projections already factor in billions in tariff-related expenses. Autoweek
Next on the agenda: dividends and buybacks. GM announced its quarterly dividend will rise to $0.18 per share, payable on March 19 to shareholders recorded as of March 6. The automaker’s share repurchase authorization remains open-ended, with no set expiration. prnewswire.com
