GM lifts outlook, raises dividend and announces $6 billion buyback after EV-related charges
General Motors reported fourth-quarter results that beat analyst expectations on an adjusted basis and unveiled a new $6 billion stock repurchase plan alongside a dividend increase. The automaker also outlined 2026 profit targets, while acknowledging significant charges tied to a realignment of its electric-vehicle strategy.
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Bigger returns to shareholders
General Motors used its latest earnings report to signal confidence in its cash-generation outlook, announcing a new $6 billion share buyback program and raising its quarterly dividend. The moves helped push the stock sharply higher in early trading on Tuesday, January 27, 2026, as investors focused on capital returns and forward guidance. ([wsj.com](https://www.wsj.com/business/earnings/general-motors-lost-3-3-billion-as-evs-weighed-on-bottomline-69dbafb0?utm_source=openai))
The company said it expects 2026 adjusted earnings before interest and taxes in a range of $13 billion to $15 billion, pointing to continued strength in its core business even as the industry navigates tariff uncertainty and a slower, costlier transition to electric vehicles than previously anticipated. ([wsj.com](https://www.wsj.com/business/earnings/general-motors-lost-3-3-billion-as-evs-weighed-on-bottomline-69dbafb0?utm_source=openai))
EV reset weighs on reported bottom line
GM’s quarter included a $3.3 billion loss, driven by a major write-off tied largely to its EV business and broader strategic adjustments. Even so, adjusted results topped expectations, supporting management’s argument that the company can fund investment priorities while also returning significant cash to shareholders. ([wsj.com](https://www.wsj.com/business/earnings/general-motors-lost-3-3-billion-as-evs-weighed-on-bottomline-69dbafb0?utm_source=openai))
The automaker’s update underscored an increasingly common theme across legacy manufacturers: EV losses and transition costs remain meaningful, but executives are trying to balance that reality with promises of margin protection and disciplined capital allocation. GM also pointed to efforts to reduce EV losses in 2026 compared with prior periods as it recalibrates volumes and product plans. ([wsj.com](https://www.wsj.com/business/earnings/general-motors-lost-3-3-billion-as-evs-weighed-on-bottomline-69dbafb0?utm_source=openai))
The announcement followed a period of heavy buybacks by the company and landed as investors look for clearer signals on demand, pricing and the impact of potential policy changes. For shareholders, the package of guidance plus a buyback and dividend bump was read as an attempt to anchor confidence amid an unsettled automotive outlook. ([wsj.com](https://www.wsj.com/business/earnings/general-motors-lost-3-3-billion-as-evs-weighed-on-bottomline-69dbafb0?utm_source=openai))