New York, January 27, 2026, 14:50 EST — Regular session underway.
- GM shares climbed following an upgrade to its 2026 profit forecast and a hike in shareholder returns
- The company took significant charges related to resetting its electric-vehicle capacity and investments
- Tariff expenses, supply-chain disruptions, and hints of weakening demand are under investor scrutiny
General Motors shares jumped 9.6% to $87.07 in afternoon trading, after fluctuating between $77.41 and $87.18 earlier in the session.
The move came after GM’s fourth-quarter results and an upbeat profit forecast for 2026, alongside a dividend increase and a fresh $6 billion share buyback plan. This matters because investors had been preparing for a rougher 2026, with shifting tariffs, rising input costs, and a U.S. market feeling the pinch from high sticker prices. (Reuters)
GM forecasted adjusted core profit between $13 billion and $15 billion for the year, with the midpoint exceeding analysts’ $13.39 billion estimate, based on LSEG data. Evercore ISI’s Chris McNally described it as “a very strong guide” in a note.
Adjusted pre-tax earnings for the fourth quarter climbed roughly 13% to $2.84 billion. Adjusted EPS topped expectations at $2.51. Revenue dipped 5.1%, landing near $45.3 billion.
The headline figures took a hit from the EV reset. GM reported a $3.3 billion quarterly loss, weighed down by special charges tied mainly to shifting EV capacity and investments. These moves aim to match anticipated drops in consumer demand for EVs and account for recent changes in U.S. policy, according to the company’s earnings documents. (SEC)
On Tuesday, GM submitted an 8-K to the SEC, including its earnings release and additional supporting documents. (SEC)
On the call, executives emphasized strong demand for trucks and SUVs in North America but cautioned that several challenges from last year persist. GM pointed to rising commodity costs, anticipated chip shortages, and foreign-exchange headwinds. The company estimates gross tariff expenses this year will run between $3 billion and $4 billion, aiming to offset some of that burden.
Regulatory changes are also influencing the picture. GM noted that a more relaxed U.S. environmental stance should benefit its highest-margin vehicles and lower compliance expenses, partly by cutting back on buying regulatory credits from EV producers like Tesla.
GM isn’t backing away from EVs, even as it tweaks its strategy. CEO Mary Barra reaffirmed that EVs remain the “end game,” while the company zeroes in on trimming costs. CFO Paul Jacobson projected $1 billion to $1.5 billion in EV cost savings tied to the restructuring.
Ford and GM are negotiating a rescue financing deal with bankrupt auto parts supplier First Brands Group to help it stay afloat during Chapter 11, the Financial Times reported. A GM spokesperson confirmed the company is keeping an eye on developments and preparing contingency plans, though operations remain unaffected for now. (Reuters)
Peer shares have reacted sharply to tariff news and supplier updates, as investors remain cautious about potential disruptions resurfacing while automakers aim to stabilize production and pricing.
But the upside isn’t guaranteed. Tariff bills might come in above forecasts, commodity prices could spike unexpectedly, and a fresh supply crunch would put GM’s margin goals under pressure. On top of that, if demand for EVs rebounds faster than anticipated, the recent pullback could mean lost market share.
Traders are now focused on how fast GM rolls out its new buyback authorization and if it can maintain control over tariff mitigation and EV expenses. The company announced a raised quarterly dividend of $0.18 per share, payable March 19 to shareholders recorded by March 6.
