New York, January 27, 2026, 13:37 (ET) — Regular session
- GM shares jumped nearly 9% following the automaker’s boost to its 2026 profit forecast and a fresh $6 billion share buyback plan.
- The company boosted its quarterly dividend by 20%, citing consistent demand for trucks and SUVs in North America.
- Tariffs, commodity prices, and a cooling EV market continue to be key variables shaping the Fed’s decision on Wednesday.
General Motors shares jumped 9.2% to $86.70 by 1:22 p.m. ET Tuesday, following a boost to its 2026 profit forecast. The company also greenlit a new $6 billion share buyback program and announced a dividend hike. (SEC)
Investors are digesting a flood of earnings reports while watching the Federal Reserve’s policy meeting closely, as Wall Street remains tilted toward risk following new S&P 500 highs. Demand for big-ticket items is back in focus, with autos taking center stage. (Reuters)
GM projected 2026 EBIT-adjusted — excluding one-time items — between $13 billion and $15 billion, with adjusted EPS ranging from $11 to $13. The automaker also increased its quarterly dividend by 3 cents, raising it to 18 cents per share. The payout is set for March 19 to shareholders of record on March 6. (PR Newswire)
General Motors’ adjusted pre-tax earnings for the fourth quarter jumped 13% to $2.84 billion, driven by strong sales of its high-margin pickups and SUVs, Reuters reported. Adjusted EPS came in at $2.51, surpassing expectations. “This is a very strong guide,” said Evercore ISI analyst Chris McNally. GM also flagged a more optimistic outlook for its truck-heavy lineup, benefiting from eased emissions rules, and revealed it could save up to $750 million by steering clear of regulatory credit purchases from EV makers like Tesla. (Reuters)
That said, the quarter came with a significant caveat. GM reported a loss, dragged down by EV-related charges, and warned of a softer EV market following the expiration of the $7,500 U.S. tax credit, Barron’s reported. (Barron’s)
The risk is costs outpacing prices. GM’s CFO Paul Jacobson told analysts the company anticipates gross tariff costs between $3 billion and $4 billion in 2026. On top of that, another $1 billion to $1.5 billion could be hit from commodities and foreign exchange pressures, with aluminum cited as a key concern. (The Motley Fool)
In a letter to shareholders, CEO Mary Barra said GM expects the U.S. new-vehicle market to remain “resilient” and aims to bring North America margins back to the 8%-10% range, while shifting more production back to the United States. She also highlighted that GM’s EV lineup attracted nearly 100,000 new customers in 2025, despite a slowdown in the market. (MarketScreener)
The focus now shifts from today’s jump to what comes next: how fast the buyback kicks in, if tariff relief sticks, and GM’s take on managing profits from gas trucks alongside EV cost reductions. Traders are also eyeing the Fed’s statement on Wednesday, January 28, set for 2:00 p.m., with Chair Jerome Powell speaking at 2:30 p.m. (Federalreserve)
