Key Stats for General Motors Stock
- Price change for General Motors stock: 8.75%
- $GM Share Price as of Jan. 27: $86
- 52-Week High: $87
- $GM Stock Price Target: $86
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What Happened?
General Motors (GM) stock surged nearly 9% today after the automaker reported fourth-quarter earnings that beat Wall Street expectations and announced a sharply higher dividend. The company posted adjusted earnings of $2.51 per share, topping the $2.20 consensus estimate.
Revenue came in slightly below expectations at $45.3 billion versus the $45.8 billion forecast. However, investors focused on the positive earnings surprise and management’s optimistic 2026 guidance.
GM announced a 20% dividend increase, raising its quarterly payout from $0.15 to $0.18 per share. The company also authorized a new $6 billion share buyback program, continuing its aggressive capital return strategy.
Since late 2023, GM has repurchased over $23 billion worth of stock, reducing its share count by more than 35%.
For 2026, General Motors stock investors got encouraging guidance. The company expects adjusted earnings between $11 and $13 per share, with the midpoint matching analyst estimates.
More importantly, CEO Mary Barra said GM expects North America margins to bounce back to the 8% to 10% range this year after dropping to 6.8% in 2025.
The automaker continues navigating significant challenges. GM took over $7 billion in special charges during the fourth quarter, mostly related to scaling back electric vehicle plans and restructuring operations in China.
The company sold its stake in a battery plant in Lansing and shifted its Orion Assembly plant from EV to traditional engine production as consumer demand for electric vehicles softened.
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What the Market Is Telling Us About General Motors Stock
The strong rally in General Motors stock shows investors are optimistic about the company’s turnaround prospects.
Despite reporting a net loss of $3.3 billion for the quarter (due to those one-time charges), the underlying business performance beat expectations.
Wall Street appears encouraged by GM’s ability to adapt quickly. The company reduced its electric vehicle capacity in response to slowing demand while simultaneously investing $5 billion to expand U.S. production of highly profitable trucks and SUVs. This pivot addresses both regulatory changes and consumer preferences.
General Motors stock also benefited from better-than-expected tariff impacts.
- The company spent $3.1 billion on tariffs in 2025, below its original $3.5 billion to $4.5 billion estimate.
- For 2026, GM expects gross tariff costs of $3 billion to $4 billion but believes it can offset more than 40% through pricing actions and manufacturing changes.
However, some uncertainty remains. GM’s guidance assumes a 15% tariff rate on South Korean imports, but President Trump recently threatened to raise it back to 25% after South Korea’s legislature failed to approve the trade deal.
GM is the second-largest U.S. importer of vehicles and relies heavily on South Korean plants for popular models like the Chevrolet Trax and Buick Envista.
The market also rewarded GM’s improved China performance. While still losing money there, the company’s China equity losses shrank dramatically to $316 million in 2025 from $4.4 billion the prior year. New energy vehicles now represent 50% of GM’s China sales and are profitable across all price points.
With aggressive buybacks, a higher dividend, and improving margins on the horizon, General Motors stock looks positioned to sustain momentum if the company delivers on its 2026 targets.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
