General Motors reported adjusted earnings of $2.51 per share for the quarter ended December 31, marking a 30% increase year-over-year from $1.92. While total revenue of $45.29 billion dipped 5.1% from the prior year’s $47.70 billion and fell slightly short of consensus, the company’s core operating income rose 13.3% to $2.84 billion. Capital returns were prioritized as the board approved a 20% increase in the quarterly cash dividend to $0.18 per share and authorized a new $6 billion share-repurchase program, reflecting management’s confidence in ongoing free-cash-flow generation.

In response to shifting consumer demand and policy changes, notably the expiration of the $7,500 consumer tax credit and relaxed emissions regulations, GM recorded a $7.2 billion special charge to realign its electric-vehicle capacity. This one-time adjustment drove a fourth-quarter net loss of $3.3 billion, offsetting gains in its profitable truck and SUV franchises. Management forecasts this restructuring will yield $1.0 billion to $1.5 billion in cost savings within the EV business over the next year.

Buoyed by resilient demand for full-size trucks and crossovers, GM provided guidance for 2026 adjusted EBIT of $13.0 billion to $15.0 billion and net income of $10.3 billion to $11.7 billion, up from $12.7 billion and $2.7 billion, respectively, in 2025. Automotive operating cash flow is expected between $19 billion and $23 billion, with capital expenditures of $10 billion to $12 billion. Shares have rallied 57.8% over the past year, recently posting their best daily gain since October 2024 as technical momentum and renewed investor optimism around high-margin trucks and cost discipline drive record highs.