GM boosts dividend and announces $6 billion buyback as it projects higher 2026 profit
General Motors reported a fourth-quarter performance that beat key expectations on an adjusted basis, raised its dividend and authorized a new $6 billion share repurchase. The automaker also issued 2026 profit guidance that suggested another strong year, even as it recorded a large quarterly loss tied to major charges and restructuring around its EV strategy.
General Motors on Tuesday, Jan. 27, 2026, unveiled a shareholder-return package that included a dividend increase and a new $6 billion share repurchase authorization, alongside guidance calling for higher profits in 2026. Investors focused on the company’s cash generation and forward outlook, even as headline figures were clouded by significant charges that produced a large quarterly net loss. ([marketwatch.com](https://www.marketwatch.com/story/general-motors-takes-7-2-billion-charge-on-ev-shift-as-it-boosts-dividend-and-sets-new-buyback-159f1e6d?utm_source=openai))
Guidance points to another strong year
GM said it expects adjusted EBIT of $13 billion to $15 billion in 2026 and adjusted automotive free cash flow of $9 billion to $11 billion, framing the year ahead as one of continued strong operating performance. The company’s quarter showed revenue around $45.29 billion, with adjusted EPS of $2.51, both broadly aligned with or better than consensus expectations cited by market coverage. ([finance.yahoo.com](https://finance.yahoo.com/news/gm-reports-q4-earnings-beat-announces-6-billion-stock-buyback-113333708.html?utm_source=openai))
Big charges, big buyback
Despite upbeat forward guidance, GM posted a fourth-quarter loss of about $3.31 billion, which reports tied to major charges linked to EV realignment and related strategy shifts. Management emphasized that the company can fund investments, manage debt and still return capital to shareholders, with the buyback and dividend move positioned as evidence of confidence in the balance sheet and future cash flow. ([marketwatch.com](https://www.marketwatch.com/story/general-motors-takes-7-2-billion-charge-on-ev-shift-as-it-boosts-dividend-and-sets-new-buyback-159f1e6d?utm_source=openai))
Market reaction was positive: coverage noted the stock jumped to record territory following the announcements, with investors rewarding the combination of profit outlook, repurchases and dividend growth even as the company navigates the cost and complexity of its EV transition. ([marketwatch.com](https://www.marketwatch.com/story/general-motors-takes-7-2-billion-charge-on-ev-shift-as-it-boosts-dividend-and-sets-new-buyback-159f1e6d?utm_source=openai))